Volpara’s latest US patent protects key features of Volpara Enterprise and Volpara Live! software

Highlights:

• The latest US patent to be granted to Volpara protects key features of the Company’s Volpara®Enterprise™ and Volpara®Live!™ clinical system software
• Together with 96 other granted patents in the Volpara portfolio, the patent protects current and new qualitative features of Volpara’s software and the advantages itprovides to clinicians and patients

Appendix 4C – Q2FY21 Quarterly Cash Flow Report

Highlights:

• Quarterly cash receipts from customers remain strong despite COVID-19, at NZ$4.7M—subscription receipts up approx. 16%
• NZ$64.3M cash on hand at end Q2FY21
• Unaudited revenue for H1FY21 of NZ$9.5M, up 38% on H1FY20; subscription revenue up 71%
• As previously reported, Annual Recurring Revenue is NZ$19.9M, ARPU is US$1.16
• Churn remains negligible; US coverage remains approx. 27%
• FDA update on breast density reporting requirements remains pending

Wellington, NZ, 8 October 2020: Volpara Health Technologies (“Volpara,” “the Group,” or “the Company”; ASX: VHT), a health technology software company whose integrated breast care platform assists in the delivery of personalised patient care, is pleased to provide investors with an update on Q2 trading.

Highlights:

• Annual Recurring Revenue (ARR) at end Q2 FY21 of NZ$19.9M, a record Q2 for new Software-as-a-Service (SaaS) sales
• At least one of Volpara’s software products contracted to be used on ~27% of US women attending breast cancer screening
• Average Revenue Per User (ARPU) up to US$1.16, an increase of ~6% from Q1, helped by increased sales of our integrated breast care platform
• Q2 included deals from both major OEM partners, Fuji Medical & GE Healthcare

Appendix 4C – Q3 FY20 Quarterly Cash Flow Report

Highlights:

• Cash receipts from customers NZ$4.5M, up 138% compared to Q3 FY19
• NZ$35. 4M cash on hand at end Q3 FY20
• Annual Recurring Revenue (ARR) at end Q3 FY20 of NZ$16 .8M, ahead of mid-range forecasts
• FY20 Target ARR now increased from NZ$17.1M to at least NZ$17.8M
• At end Q3, at least one of Volpara’s software products now contracted to 25.9% of US market, tracking forecast

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The Q3 figures reflect another strong quarter for Volpara in the wake of last year’s acquisition of MRS in the key US market as more customers take advantage of Volpara’s enhanced product suite and adopt a SaaS model. Consequently, Volpara is pleased to advise that it will meet and expects to exceed its midpoint guidance for FY20 annual recurring revenue (ARR) guidance of NZ$17.1M (US$11.5m).

“Following a stronger-than-expected Q2, we’ve now followed up with another quarter of strong growth which has helped us to expect an increase in our ARR forecast for the year,” said Volpara CEO Dr Ralph Highnam. “I’m particularly pleased we’re starting now to see the combined SaaS orders coming in and the process underway to encourage MRS’s legacy installed base to move from their old service & maintenance agreements onto SaaS.”

Dr Highnam said another highlight of Q3 was the publication of the DENSE* trial results in the New England Journal of Medicine. The DENSE trial results showed a significant drop in interval cancers.

“Trials like DENSE, using Volpara®Density ™, provide the evidence that global screening programs need to change,” Dr Highnam said.

Group cash receipts for Q3 FY20 from customers rose 138% (compared to Q3 FY19) to NZ $4.5 M.

Cash on hand at the end of Q3 FY20 was NZ$ 35. 4M, compared to NZ $40.2M at the end of the previous quarter . Operating cash outflow was NZ$4.5M ? up from NZ$4.2M in Q2 ? largely as a result of increased outgoings related to the Radiology Society of North America (RSNA) show in Chicago in early December. Operating costs continue to run at budget.

The Group continues to hold no debt.