General

Volpara (ASX:VHT) Shares Rise On Latest Quarterly Results

Andrew Page

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.

Ranked #13 on Strawman, shares in Volpara remain below the community consensus valuation. Click below to uncover insights from some of Australia’s best private investors.

Click here for Volpara (ASX:VHT) share price & research

Strawman is Australia’s premier online investment club. Join for free to access independent & actionable recommendations from proven private investors.

Register for free ASX recommendations

Disclaimer– The author may hold positions in the stocks mentioned in this publication, at the time of writing. The information contained in the publication and the links shared are general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. For errors that warrant correction please contact the editor at [email protected].

This Service provides general financial advice only, and has not taken your personal circumstances into account. Strawman Pty Ltd operates under AFSL 501223 . For more information please see our Terms of use. Please remember that share market investments can go up and down and that past performance is not necessarily indicative of future returns. Strawman Pty Ltd does not guarantee the performance of, or returns on any investment.

© 2019 Strawman Pty Ltd. All rights reserved.

| Privacy Policy | Terms of Service | Financial Services Guide |

ACN: 610 908 211 | Australian Financial Services Licence (AFSL): 501223

Related Articles

General

Network Effects: Why They Matter

. Businesses that enjoy network effects tend to have a much greater capacity to deliver outsized returns. They aren’t especially common, but if you can find them you stand to do extremely well — even if it often feels like you are too late. At its core, a network effect describes a situation where the value of a product or service increases exponentially […]

General

Doubters and Dreamers

Paradigm-shifting innovation always has its skeptics. It’s almost a rite of passage. Virtually all of our modern technological marvels — the things we today take for granted — were initially met with plenty of Fear, Uncertainty & Doubt (FUD). Steam power, electricity, radio, the internet are all great examples, but one less discussed tech revolution deserves special mention — simply because it seems so laughable […]

General

Are The Bulls Back?

You don’t need us to tell you that it’s been a tough run for small caps over the past year or so. And the harsh truth is that much of the pain was well deserved. Things always look clearer with the benefit of hindsight, but there was never any good justification for a bunch of sub-scale, cash-burning, undifferentiated wannabees to […]

General

The Language Of Business

Accounting may not be the most enthralling of topics, but some basic literacy here is vital if you fancy yourself a stock picker. As Buffett put it: “You have to understand accounting and you have to understand the nuances of accounting. It’s the language of business and it’s an imperfect language, but unless you are willing to put in the […]

General

Advantage Federer: Investing Wisdom From a Tennis Great

Tennis legend Roger Federer recently delivered the commencement address at Dartmouth university, and it’s well worth a watch. He is, as always, a class act. Roger isn’t exactly known for his investing prowess, although let it be noted he has had considerable success on that front. Over the years he earned around $130 million in prize money, but the majority […]

General

The Opportunity of Uncertainty

Any investment that promises low risk and high returns is almost certainly a scam. It’s the financial equivalent of getting something for nothing — a fantasy that ends only in disappointment. In the real world, certainty comes at a price. And that price is lower returns. Think about it; if a largely ‘risk-free’ but high return investment were available, it would attract a […]