Alcidion share price surges 18% higher on record quarter

Alcidion shares are on fire on Wednesday…

| More on:
Five healthcare workers standing together and smiling.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Alcidion shares are rocketing higher on Wednesday
  • Investors have been buying the healthcare technology company's shares following a strong trading update
  • Alcidion finished FY 2022 with a record quarter

The Alcidion Group Ltd (ASX: ALC) share price has been a strong performer on Wednesday.

In afternoon trade, the healthcare technology company's shares are up over 18% to 16 cents.

This follows the release of Alcidion's unaudited fourth quarter and full year update this morning.

Alcidion share price higher on strong top line growth

  • FY 2022 revenue of $34 million, up 31% year on year
  • Recurring revenue of $23 million
  • New sales with a total contract value (TCV) of $57.7 million, up 96% year on year
  • Fourth quarter TCV sales of $14.8 million
  • Positive fourth-quarter operating cash flow of $3.3 million
  • Positive underlying EBITDA in FY 2022 excluding acquisition costs
  • Cash balance of $17.3 million

What happened during the fourth quarter?

For the three months ended 30 June, Alcidion finished the financial year in style by delivering record quarterly cash receipts of $14 million. This underpinned a 29% increase in full-year cash receipts to $41.4 million.

Management advised that this was driven by the signing of several new customers in the Australian and UK markets and upgrades by a number of strategic, long-term customers to the latest Miya Precision platform.

The latter includes new five-year contract upgrades with Northern Territory Health, Western Health Victoria, Alfred Health, and East Lancashire Hospitals NHS Trust.

Management commentary

Alcidion's managing director, Kate Quirke, was pleased with the 12 months and appears optimistic on the future. She said:

Alcidion brings FY22 to a close with an outstanding final quarter delivering record cash receipts, which has not only resulted in positive operating cashflow for the quarter but also for the full year FY22.

Alcidion's continued growth in the face of a challenging external business environment is driven not only by large scale (announced) contracts but also by several smaller contracts which cumulatively contribute meaningfully throughout the year, delivering record new sales for FY22 with TCV of $57.7M.

We head into the new financial year with $31.2M of contracted and expected renewal revenue, which when combined with our continually maturing pipeline both in ANZ and UK positions Alcidion for continued strong and profitable growth in FY23.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Technology Shares

50 times earnings! Why Block shares could still be better value than the banks

This expert reckons Block remains a bargain, even near 50 times earnings.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Up 70%, is it too late to invest in Xero shares?

This ASX tech darling hit a new all-time share price record yesterday.

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
International Stock News

Are interest rates to blame for the shaky Nasdaq Index last night?

US markets were volatile overnight.

Read more »

A man sees some good news on his phone and gives a little cheer.
Technology Shares

Buy this ASX tech stock that delivered 'beats across the board'

Bell Potter has good things to say about this high-flying stock.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Technology Shares

Why are investors fighting to buy this speculative ASX stock today?

What is getting investors excited today? Let's find out.

Read more »

Two men laughing while bouncing on bouncy balls
Technology Shares

Top broker says ASX 300 tech stock has 18% upside after sell-off

ASX 300 investors overreacted in punishing the high flying tech stock yesterday, this top broker says.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

These ASX 200 tech stocks just crashed! Is this a no-brainer buying opportunity?

Bell Potter thinks these tech stocks could be great options following declines this week.

Read more »