The Volpara Health Technologies Ltd (ASX: VHT) share price was a strong performer on Monday, closing the day 9% higher at an all-time high of $1.94.
The healthcare technology company's shares could be on the move again on Tuesday following the release of its fourth quarter update.
What is Volpara Health Technologies?
For those that are not familiar with this exciting company, Volpara Health Technologies is a healthcare technology company whose AI imaging algorithms assist the early detection of breast cancer.
Its clinical applications for screening clinics provide feedback on breast density, compression, dose, and quality, while its enterprise-wide software, VolparaEnterprise, provides role-specific dashboards and wide-ranging benchmarking analytics to help clinics manage their business more efficiently.
Demand for its products has been growing at an incredible rate over the last couple of years and this continued in the fourth quarter of FY 2019.
How did Volpara perform in Q4?
In the fourth quarter the company reported annual recurring revenue (ARR) growth of 86% to NZ$6.63 million and full year cash receipts growth of 83% to NZ$5.6 million.
At the end of the period the company's total contract value (TCV) had increased 42% to NZ$15.8 million and its share of the U.S. breast screening market climbed to 7.1%.
Another positive in FY 2019 was the increase in average price per woman screened (ARPU) in the United States. This has lifted 37% since the end of FY 2018 to US$2.17.
Pleasingly, management expects more of the same in FY 2020 and has provided ARR growth guidance in the range of 50% to 80% and U.S. market share guidance of at least 10%.
Should you invest?
A lot of the numbers from this announcement were pre-released at the start of the month, so there weren't too many surprises here. What was new, though, was its guidance for FY 2020, which I felt was a little broader and softer than expected. I suspect this could weigh on its shares today.
In light of this, it might be best holding off an investment for the time being and seeing if you can get in at a better price. And with its shares at an all-time high, taking a bit of profit off the table could also be worth considering if you're already a shareholder.
In the meantime, I think Nanosonics Ltd (ASX: NAN) and Pro Medicus Limited (ASX: PME) shares could be great alternatives.
