Volpara Health Technologies, the Kiwi digital health firm listed on the ASX, narrowed its first-half loss as rising revenue put it on track to deliver faster sales growth through the remainder of the year.
The Wellington-based company yesterday reported a loss of $4.2 million, or 3 cents per share, in the six months ended Sept. 30, from a loss of $4.7 million, or 4 cents, a year earlier. Volpara lifted revenue 41 percent to $1.7 million with commercial sales up 13 percent to $1.3 million and the balance from increased research and development government grants. On an annualised recurring revenue basis, a favoured measure for software-as-a-service firms, sales rose 94 percent to $2.1 million.
"This puts the company on track to exceed its 200 percent growth target for FY18, given H2 is typically strong than H1," chief executive Ralph Highnam said in a statement to the ASX. "Our tasks are now to deliver substantial growth with more customers signing up, increasingly by word of mouth, and to deliver more services to those customers to ensure they are increasingly successful and that we return increased fees per customer."
Volpara's technology focuses on early detection of breast cancer and it went public last year, choosing the ASX over a domestic listing. The shares were sold at 50 Australian cents apiece, raising A$10 million in an initial public offering in 2016, and it went back to investors seeking another A$10 million at 60 Australian cents apiece later that year.
The shares closed at 64 Australian cents yesterday, and have edged up 0.8 percent this year.
The company increased its spending on R&D to $1.5 million in the six-month period from $1.2 million a year earlier, while sales and marketing expenses shrank to $2.6 million from $2.7 million. Operating cash burn slowed to $3.4 million from $3.8 million and the company had cash and equivalents of $1.3 million as at Sept. 30, plus a further $8 million in term deposits.
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