The Volpara Health Technologies Ltd (ASX: VHT) share price is on the move on Wednesday morning.
At the time of writing, the healthcare technology company's shares are up 3% to $1.17.
Why is the Volpara share price rising?
Investors have been bidding the Volpara share price higher today after the release of second quarter business update.
According to the release, the company was on form during the three months and delivered record quarterly growth in net new annual recurring revenue (ARR). Volpara added US$1.2 million during what is traditionally its slowest quarter.
This means that Volpara's ARR has now reached ~US$20.4 million (~NZ$29.0 million), which is up ~10% since the end of FY 2021.
In respect to market share, the company estimates that it now has at least one software product contracted to be used in the breast cancer screening of approximately 34% of US women. This equates to approximately 13.4 million women and is up from 33% at the end of the first quarter.
Also heading in the right direction is its Average Revenue per User (ARPU). It was US$2.04 for the quarter and is now US$1.46 over the entire installed base. This is up from US$1.42 in the first quarter.
The company also notes that it has just announced its largest contract to date. It estimates that it will deliver US$2.15 million in revenue over five years, which represents US$430,000 in ARR.
Management notes that its result and new contract reflects its customers' desire to facilitate personalised breast cancer care with tightly integrated breast density, cancer risk, and patient reporting.
Management commentary
Volpara's CEO, Dr Ralph Highnam, commented: "Volpara has had a tremendously strong quarter despite the continuing challenges of the COVID-19 pandemic. The Volpara Health Breast Platform is gaining momentum as clinics begin to understand the power of a fully integrated patient tracking, risk, and density offering."
"We also saw a number of large Analytics deals signed and are pleased with the continually improving ARPU as we land new customers with our larger suite of products or expand with existing customers continuing to grow with us. Promisingly, we enter Q3 with a strong pipeline and look forward to showing off our outstanding product platform at RSNA, the world's largest radiology trade show, in early December," he added.
The Volpara share price is down 17.5% in 2021.
