The Volpara Health Technologies Ltd (ASX: VHT) share price will be on watch on Monday when the market reopens after the release of its full year results after the market close.
For the 12 months ended March 31, the medical technology company reported total revenue of NZ$5 million. This was a 78% increase on the prior corresponding period and driven by strong growth in Software-as-a-Service (SaaS) revenue. SaaS revenue more than doubled to just over NZ$4 million during the 12 months.
At the end of the period Volpara's Annual Recurring Revenue (ARR) had grown 86% to NZ$6.6 million thanks to a sharp increase in market share for its Volpara Enterprise product. At the end of March the company had grown its share of the U.S. breast screening market from 3.2% to 7.1%.
On the bottom line the company posted a full year net loss of NZ$11.7 million. Management advised that this reflected increased expenses associated with the expansion of its US sales team and the Wellington engineering team. This was done in order to capitalise on open leads and to continue to drive innovation with existing and new products. The loss left the company with a cash balance of NZ$14.4 million.
The company's CEO and chief scientist, Dr Ralph Highnam, was pleased with the company's performance in FY 2019 and particularly its final quarter.
He said: "FY19 was a very solid year, ending with one of the strongest quarters in the Company's history, the highlight being Volpara's first NZ$1M quarter in new ARR. That brought us to an 86% growth in ARR over the year, a pleasing result that sets us up nicely for continued accounting revenue growth in FY20."
The good news for shareholders is that Dr Highnam appeared excited about the company's prospects in FY 2020.
He added: "We enter FY20 knowing that many groups in the United States are pushing for density notification and increased quality in breast imaging, that the FDA will mandate density notification, and that the Netherlands' Project DENSE results will be formally published. We're looking forward to FY20 with relish, and to seeing many more women receiving the benefit of Volpara's technology."
