Conference Call Notes

The Q3 4C results have already been covered in other straws but I was able to attend the corresponding earnings call so here are my notes from it. The call was quite short with management presenting for less than 15 minutes and then Q&A for another 15 minutes before winding it up. I thought it was a bit strange to only allow 30 minutes for an earnings call, even though it's only a quarterly update.

CFO:

• Q3 record cash receipts mainly due to improved debtor recovery i.e. payment timing
• Q4 cash won't exceed Q3 but will still be up on PCP at expected $9 - $9.5 MNZD
• Q4 cashflow will be back to negative (Operating + Investing) but improved on PCP
• Not yet at consistent/repeatable cashflow breakeven, however on track to be profitable within previously guided timeframe
• Redundancy costs for staff reduction fully realised in FY23
• Quarterly cash receipts can be lumpy, judge on 12 month cashflow not by quarter

CEO

• With reduced costs and continuing growth, no need to raise capital. Can reach profitability on current cash balance.
• Continue to focus on 'elephant' customers and have good sales pipeline
• Attended recently biggest radiology focused conference in the world
• Contracts used to be mostly only 1 year but now mainly 3 - 5 year contracts. Longer term contracts are the norm now and that will continue in the future. (This is a great move IMO)
• ProMedicus not seen as a competitor but as a business with a complimentary offering. They don't see overlap with ProMedicus or them competing with Volpara on same tenders.

I was really happy with the results and the continued growth in contracted revenue, improved costs and cashflow. They seem well capitalised to reach consistent profitability in FY24.

Terry's focus on 'elephant' customers seems like a good one and really starting to deliver results and finally getting this company towards profitability.

I'm looking forward to the full year results later in the year.