Med-tech company Volpara (ASX:VHT) today released their quarter cash flow report for the period ending September 30, and once again managed to post some encouraging figures.
Cash receipts from customers grew a solid 190% from the same quarter last year, coming in at NZ$4.9 million. Despite the gain, Volpara is still not generating a positive operating cash flow, with net operating cash outflows of NZ$4.2 million for the quarter, or NZ$7.2 million for the first half.
The group’s cash position did, however, improve by a small amount, coming in at NZ$40.2 million thanks to the fresh injection of capital from retail shareholders during the quarter. Volpara also said that despite a deterioration in operating cash flows — due mostly to the timing of a payroll adjustment — that costs were running at or below budget.
Group annual recurring revenue (ARR) — an all important metric for SaaS companies — improved by NZ$1 million, or roughly 7%, over the latest quarter. The company was pleased with this given that the second quarter is traditionally the weakest, and said the business remained on track to meet its mid-range forecast of NZ$17.1 million for the full year. Further, with an estimated 25.8% of screened US women using at least one one of Volpara’s products, the company was also on track to meet the full year target of 27% of US women having a group product applied to their images and data.
The average revenue per user (ARPU) generated across breast cancer operations also showed a slight uptick, rising from NZ$1.37 million to NZ$1.41 million. Once the full suite of products converts to a SaaS model (likely in the next month), management expect to see a solid uptick in this metric.
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