The Q4 report is looking much better than last quarter with Volpara’s cash burn trending down once again. Cash outflow was NZ$2.9M similar pcp, but down 20% on last quarter. Volparra has NZ$18.2M in cash reserves and remains debt free.

Other good news is both cash receipts and ARR are continuing to trend upwards with cash receipts of NZ$8.0M up 48% pcp, and ARR now US$22N up over US$700K on the prior quarter. FY22 ARR is a record US$3.6M up 38% on FY21 ARR of US$2.6M. ARPU for the installed base increased from US$1.47 at the end of Q3FY22 to US$1.51.

Overall a reasonable result. If Volparra continues to improve quarterly cash flow at the current rate (+US$700K) Volpara should become cash flow positive before it runs out of cash!

Full ASX Announcement

Cash Highlights:

• Record quarterly cash receipts from customers of NZ$8.0M, up approx. 48% compared to Q4FY21 (or over 49% constant currency)

• Subscription-based receipts in Q4FY22 of over NZ$7.5M, up approx. 39% compared to Q4FY21 (or approx. 41% constant currency)

• Unaudited cash receipts for the full year ended 31 March 2022 of ~NZ$28.5M (or NZ$29.6M constant currency), up almost 45% year on year (or 50.5% constant currency)

• Net operating and investing cash outflow1 in Q4FY22 of NZ$2.9M, an improvement of 20% from NZ$3.6M in Q3FY22

• NZ$18.2M cash on hand at end Q4FY22

Software as a Service (SaaS) Highlights:

• Annual Recurring Revenue (ARR) now ~US$22.2M (~NZ$31.8M2), up over US$700k on the prior quarter (Q3FY22)

• Record net new ARR added in FY22 of over US$3.6M (NZ$5.2M), or up ~38% on previous best ~US$2.6M in FY21

• Coverage of over 35.5% of US women being screened, up from prior quarter of ~35%

• Average Revenue Per User (ARPU) over the installed base of US$1.51 at end Q4;

average ARPU for all deals in Q4 of US$3.15—ranging from US$1.00 to US$7.50

• SaaS churn remains low

Today Volpara released an ASX announcement about findings from the European Society of Breast Imaging (EUSOBI) trial. It relates to the DENSE trial, a 10-year Dutch nationwide multicentre randomised trial in women with extremely dense breast tissue, as automatically assessed by a computer program (VolparaDensity).

Because it was supposedly ‘not price sensitive’ I almost missed it! The ASX crackdown on ‘ramping announcements’ last year must have companies (some at least) being extra cautious. IMO this announcement is significant for VHT, and the market seemed to agree with the VHT share price up 4.5% today.

Full ASX Announcement

Highlights:

• The European Society of Breast Imaging (EUSOBI) now recommends European women be informed about their breast density and, if they have extremely dense breasts and are aged 50–70 years, should be offered breast MRI screening every 2–4 years.

• The EUSOBI also states that in order “to minimize variability in the selection of women for supplemental or alternate screening based on breast density, automated methods may be preferable.”

• The DENSE trial’s exclusive use of Volpara®DensityTM software underscores Volpara’s leadership in developing world-class software products for personalised breast care.

• Europe presents a significant commercial growth opportunity over the coming years as public screening programs implement these new recommendations.

And…

The EUSOBI explains the advantages associated with breast MRI screening in women with extremely dense breasts by the following statements derived from the DENSE trial:

• A woman with extremely dense breasts who is never screened has a chance of dying from breast cancer of a little over 5 percent.

• Participation in mammography screening every other year leads to early detection of cancer in about 7 percent of women, reducing the likelihood of dying of breast cancer to just over 4 percent, a reduction of 20 percent.

• According to epidemiological modelling of DENSE trial results, participation in screening with MRI every other year leads to early cancer detection in about 10 percent of women and reduces the risk of dying from breast cancer to a little over 3 percent, a mortality reduction of about 40 percent.

• The modelling suggests that when MRI prevents a woman from dying from breast cancer, she gains on average 15 years of good health before dying of another cause

Disc: held IRL and SM

Full ASX Announcement

Volpara will release its Appendix 4C – Quarterly Cash Flow Statement for the period ended 30 June 2021, on Tuesday 27 July 2021.

Investors are invited to join a webinar hosted by Group CEO Dr Ralph Highnam, CFO Craig Hadfield and EVP US Sales & Marketing Jill Spear, on Tuesday 27 July 2021 at 9:00am Australian Eastern Standard Time (AEST).

To register for the webcast, please follow this link: Register here

Registered participants will receive a confirmation email containing the Zoom access link and alternative phone dial-ins.

Full ASX Announcement
Volpata has entered into a collaboration agreement with Invitae Corporation (“Invitae”), a leader in medical genetics, to bring Invitae’s genetic testing services to Volpara’s customers in the United States.

Highlights:

• Volpara’s customers in the United States will get access to Invitae’s comprehensive genetic testing services within Volpara’s software workflow
• Volpara plans to create a fully integrated ordering process for Invitae genetic testing services within Volpara’s suite of products
• As part of this collaboration agreement with Invitae, Volpara has the potential to offer increased value to mutual customers upon successful clinical implementation

Full ASX Announcement
Volpara has been granted another patent by the European Patent Office, raising the total number of patents to 98. This latest patent, effective across 25 European countries, outlines the Volpara method of image quantification, used in multiple instances across the Volpara Breast Health Platform product suite.

This latest patent highlights improved analysis of several quantitative measures from low- dose images, enabling highly accurate assessment of a woman’s breast composition at an early age, and calculation of her baseline risk of breast cancer. In addition to improving outcomes for women, the improvements will help optimise clinical workflow.

Research studies are beginning to suggest patients receive a baseline mammogram to assess their breast density and breast cancer risk before they reach the screening age of 40. A patient who receives a high breast cancer risk score may be directed to begin annual screenings earlier than usual.

One of the concerns with offering women between the ages of 25 and 30 a baseline screening exam has been the effect of the exam’s radiation. High-sensitivity, low-dose imaging has the potential to offer patients a way around this issue—a solution in line with Volpara’s aim to achieve personalised breast cancer screening for all women.

"Securing our 98th patent is another major step forward for the company, reaffirming our position as a leading innovator in the medical imaging space, and a testament to our R&D team who are constantly pushing the boundaries in novel and important directions, ever seeking to improve the early detection of cancer," said Volpara CEO Ralph Highnam.

In sum, these patents are effective across 27 countries, including most of Europe, the United States, and China “These patents work together with Volpara’s other international intellectual property rights to facilitate the sales and growth strategy for Volpara’s product line, including software geared toward patient reporting and communication, image/exam quality monitoring and feedback, and automated breast density calculations, as well as a full risk program,” said Volpara CFO Craig Hadfield.