31-October-2023: M7T-Q1-FY2024-First-Look-Wilsons.pdf

01-November-2023: M7T-Utilising-X-ray-vision-Wilsons.pdf

Page 1 from the "First Look" update:

...and Page 1 from the "Utilising X-ray vision" update (one day later):

Disclosure: I do not hold M7T shares.

27-Aug-2020:  Mach7 Announces FY2020 Financial Results   and   Investor Presentation - FY2020 Results

plus  Preliminary Final Report and Audited Financial Statements

Profitable NPAT Result, Cashflow Positive & Triple Digit Revenue Growth

Mach7 Announces FY 2020 Results

Financial Highlights:

• Revenue up 102% to $18.9M
• EBITDA up 181% to $3.3M
• Net profit after tax up 102% to $0.2M
• Positive free cashflows from operations up 225% to $4.7M
• Contracted annual recurring revenue at 30 June 2020 $9M

Melbourne, Australia; 27 August 2020: Mach7 Technologies Limited (ASX:M7T), a company specialising in innovative data management solutions for healthcare providers, today released its full year results for the year ended 30 June 2020 (FY20). This update provides information on what the Company considers to be key financial metrics.

Business Further De-risked

The Company has reported strong revenue growth and its first (since listing) profitable and free cashflow positive result. Together with its cash reserves of $15+ million after the acquisition of Client Outlook, Mach7 has become increasingly less reliant on investor funding, and has demonstrated the scalability of the business.

FY20 Revenue Growth 102%

The Company has reported revenues of $18.9 million, growth of 102% over prior year revenue of $9.3 million. Each category of revenue achieved strong double-digit growth, with the majority being attributable to software license fees. Software license fee revenue is representative of new customers licensing the platform, and existing customer re-licensing at the expiry of their contract term. Software license fees for FY2020 included license fees earned from prestigious US-based Advocate Aurora Healthcare and Hospital Authority HK who purchased two-fifths (2/5) of their contracted licensing volume during this year.

Pleasingly, the Group’s recurring annual revenue of $6M also achieved strong (35%) annual growth. The Group’s recurring revenue is representative of customers going “live” on the Mach7 Platform and commencing their support or subscription agreement. Notably, Advocate Aurora, Sampson Regional Medical Centre, Adventist Health Tulare (“Tulare”), Colorado Imaging Associates, P.C. (“CIA”), Children’s of Alabama, Sentara Healthcare (subscription) and University of Vermont all achieved go-live during FY20.

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[I don't hold M7T shares, but this is an impressive set of results.  The M7T share price is up by around 4% today so far on the back of these numbers.]

31 January 2020:  Taylor Collison:  Mach7 Technologies (M7T):  Expecting a strong 1H result. Fair value estimate raised.

That link will take you directly to a .PDF file, so you'll need Adobe Acrobat Reader installed to read the file.

TC's Recommendation: Buy

Summary (AUD):

• Market Capitalisation: $141M
• Share price: $0.76 (31-Jan-20)  ($0.88 close on Fri 07-Feb-20)
• Price Target: $1.17
• 52 week low: $0.17
• 52 week high: $0.92

"We reiterate our buy recommendation with a higher level of conviction in the investment thesis:  Validation of Mach7’s software in large hospital networks should spur increasing demand.  With $9.4m in new business for 1H FY20, the thesis appears to be playing out well.  After upgrading our FY20 numbers to reflect stronger than expected cash flow and extending the forecast to FY23, our base case fair value estimate rises to $1.07 (30-Aug: $0.77) which implies a 12-month price target of $1.17.  Our forecasts assume additional contract wins at large institutions (similar in deal size to Advocate Aurora) over the next 12 months.  The major downside risk is in delays to contract wins.  Management report the pipeline is strong with opportunities at various stages of advancement."

01 August 2019:  https://www.taylorcollison.com.au/wp-content/uploads/2019/08/M7T-201908-Initiating.pdf

Taylor Collison have a "Speculative Buy" call on M7T and a 77c valuation.

Mach7 Technologies (M7T):  On the cusp of a material uptick in market share growth

Our View:

We initiate coverage with a speculative BUY recommendation. Further upside exists for M7T in accelerating market share growth. The driver is rising recognition of M7T’s medical imaging IT software as a viable (even preferable) alternative to software from larger suppliers (IBM, GE etc). Until recently, M7T’s growth was hindered by diversion of IT capex towards the rollout of electronic medical records (EMRs). With the rollout complete, EMRs are highlighting a need for better interoperability of health IT systems. M7T possesses one of the strongest software suites in this area compared to competitors. Healthcare executive surveys and recent largescale contract wins provide support for this thesis. Additionally, the new large-scale rollouts give comfort to risk-averse healthcare CIOs who are watching the projects closely to verify M7T is capable of delivering successfully. Feedback thus far is positive. The near-term catalyst is announcement of new contract wins – particularly at large healthcare enterprises where M7T’s potential is significant.

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Valuation:

We value M7T at $0.77 using a DCF model with moderate assumptions and supplement this estimate with a comparable company analysis. Another win on the scale of Hong Kong (or larger) would result in a material increase in our valuation range. Sensitivity analysis of 3-year market share and terminal growth rates outline possible scenarios (page 16). Management estimates that stripping out all early-stage growth and software development costs gives an EBITDA margin of 70%. Considering July 23’s CARR figure of $8.5M, our FY20 and FY21 EBITDA forecasts of $1.2M and $5.5M appear achievable. 

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Disclosure:  I don't hold.