It is an incredible company. No doubts about it and there is more to come. Every big contract is getting higher ARR and longer duration.
The deal with Intermountain will be "one the biggest Cloud-deployed PACS installations in North America, if not the world", as the deal involves replacing the current legacy PACS with Visage.
"In terms of the pipeline, there have been a number of new opportunities, particularly over the past 6-8 months that supplement those already in the pipeline that are progressing through the cycle. So, whilst we have been very successful in converting end-stage opportunities such as Intermountain and the other deals we have announced over the past 6 months, our pipeline remains strong with a range of opportunities across various stages of the cycle and across multiple segments of the market."
This enough for me to declare Promedicus the winner in the PACS battle. They are 5 from 5 after competing intensively with many players. The larger the contract, the stronger the competition.
The revenues are also recurring. So it is a matter of building a spreadsheet with all contracts and adding the annual value of each contract on top like a Gantt Chart. Really hard to kill the business, as Promedicus is winning all the big contracts. The 2 latest contracts added ~ $10M more in ARR.
This implies $65M ARR valued at $4.2B. That is ~ 65x Price to sales, but that is a useless metric if Promedicus can maintain sales growth of 30% p.a. You are looking at $200M company by 2025. So sales are expected to triple, and top healthtech companies have maintained a premium in valuation. So you are looking at $12B valuation using spreadsheet maths, that's if you maintain a 60x price to sales. A better valuation method is required before the half-yearly, so watch this space :) Those are rough calculations to automatically rule out pricing metrics like EV/EBITDA and P/S as they do not make sense for companies that are growing rapidly.