Some decent numbers from Volpara -- top line growth remains strong, gross margins steady and business continuing to trend towards profitability. Company was net operating cash flow positive (albeit down a little from the preceding half) and breakeven on a FCF basis. Forecasting positive EBITDA over coming year.
Based on FY revenue guidance of NZ$40-42m, shares are on a forward P/S of about 4.8x
Results preo here
As noted by @Nnyck777, this is a solid win for Volpara.
At current FX rates, assuming even payments over the 5yr contract period and using FY22 as a baseline, these contracts represent a 9-10% annual lift in revenues.
Seems the market is impressed too -- shares up 17% today so far. That puts shares on about 5.2x forecast revenues for FY23 (which are expected to be about 24% above FY22). Company hoping to hit breakeven in the last quarter of FY24, and has around NZ$11m in cash to support it through to then.
Not held, but on my watchlist.
Volpara's half year to September 30 saw continued strong top-line growth, but continued to burn through the cash -- albeit at an improved rate.
The full presentation is here
Key details:
The business has culled its workforce by 18% or so since March and the cost base looks to have stablised. They expect NZ$7-8m in savings by FY24.
The company is guiding for about NZ$34m in FY23 revenue, which would be 30% growth and puts shares on a forward P/S of about 5.3.
There's a lot to like with Volpara, but like so many we need to see if they can continue to deliver strong revenue growth without increasing costs.
Volpara has issued what seems a pretty decent 3rd quarter report, with customer cash receipts up 56% and subscription receipts up 54% over the year in constant currency (but of course there was a big acquisition since last Q3).
The free cash flow picture (and operating cash picture), while marginally improved on the previous quarter, still shows a company bleeding cash:
With NZ$21m in cash, and projecting the recent FCF quantum forward, Volpara will be needing to raise more cash within the next 18 months or so.
On the plus side, ARR and cash receipts are certainly trending in the right direction, with ARR of NZ$30m. Average revenue per user and churn remain sound.
The company is on track to meet guidance for full year revenue of NZ$25m, which puts it on a forward price to sales of about 9.3. Which is certainly up there -- particular given the current climate. Also worth considering they already have around 35% of the US screening market.
Disappointing there wasn't much breakdown between acquired and organic growth.
Shares remain 50% below their 2019 high, but still seem too expensive for me.
Volpara's latest quarterly is encouraging revealing a 20% lift in 3rd quarter ARR (it's largest 3rd quarter sales results to date). That's quite impressive given the limited acess to hospitals and lack of trade shows due to covid.
Cash receipts were only a bit stronger though, coming in at NZ$4.6m vs NZ$4.5m in Q3 last year -- due in large part to a firmer USD.
The company remains very well capitalised, with over NZ$60m in cash on hand, and average revenue per customer was 5% higher than the proceeding quarter and about 20% higher than a year ago.
The business is still cash flow negative, although cash burn is improving, and at the lowest level since the acquisition of MRS in 2019.
With VHT's product covering 27% of the US market, they are increasingly becoming the provider of choice and have a long runway for growth.
Volpara has released it's 1st quarter cash flow report (as a NZ company its FY ends in March).
Cash receipts for the quarter were 112% higher from the same period last year, coming in at NZ$5m. A record result, and the 4th consecutive quarter where receipts were greater than NZ$4.5m.
The company has over NZ$67m of cash on hand -- enough to sustain the company at the current burn rate for around 4.5 years. Also worth noting that the cash burn is the lowest since MRS Systems was acquired in June last year, and better than what was expected.
Annual recurring revenue was up ~6% from the preceeding quater, and 30% higher for the year.
Annual revenue per user increased, and new contracts signed in Q1 are at a much higher rate (very encouraging!).
Overall, there's not much to complain about. Volpara is in a strong position and it's great to see such a solid improvement during the worst parts of the lockdowns.
This for me has always been more a question about price. As of today, shares are trading at roughly 19x ARR (!)
ASX announcement here
Volpara reported a huge jump in revenues for the first half, up 97% to NZ$6.8 million. Likewise, subscription revenue was up 148% to NZ$5.2 million and the level of annual recurring revenue (ARR) was NZ$15.7 million, up from just NZ$4.8 million at the same time last year.
The after tax loss did however widen from NZ$5.1m to NZ$8m, thanks to a near doubling in operating expenses.
Of course, the June acquisition of MRS explains a lot of these moves, and has radically enhanced Volpara's market share and should help the company launch into adjascent areas.
The cash balance is strong at ~NZ$40m, which should sustain operations for about 5 years at the current burn rate.
I think there's a lot to like about Volpara, but i estmate shares to be trading on ~25x sales for the full year, which factors in a lot of optimism.
Announcement presentation can be seen here.
