IMEXHS Limited Reports Robust Q2 FY24 Financial Performance
IME (IME) Share Update July 2024 Monday 29th
IMEXHS Reports Strong Q2 FY24 Results with Significant Revenue Growth
IMEXHS Limited (ASX: IME), a leading provider of cloud-based medical imaging software and radiology services, has released its Q2 FY24 Activity Report, highlighting substantial revenue growth and operational achievements.
Instant Summary:
- Q2 FY24 revenue of $6.8 million, up 40% year-over-year.
- 1HFY24 revenue of $13.8 million, up 57% year-over-year.
- ARR of $29.6 million, up 21% year-over-year.
- Debt reduced to $0.9 million from $1.2 million in Q1 FY24.
- Cash reserves increased to $1.9 million from $1.4 million in Q1 FY24.
- New radiology services contract in Colombia expected to contribute $564,000 in ARR.
Financial Performance
IMEXHS Limited has reported a strong financial performance for Q2 FY24, with revenue reaching $6.8 million, a 40% increase compared to the same period last year. On a constant currency basis, this represents a 26% increase. For the first half of FY24, the company achieved a revenue of $13.8 million, up 57% year-over-year, or 32% on a constant currency basis.
Underlying EBITDA for Q2 FY24 was $0.3 million, slightly down by $0.1 million compared to the previous corresponding period (pcp). For the first half of FY24, underlying EBITDA remained flat at $0.5 million. The company also reported an Annualised Recurring Revenue (ARR) of $29.6 million, a 21% increase year-over-year.
Operational Achievements
IMEXHS secured a new radiology services contract with an existing customer in Colombia, expected to contribute $564,000 in ARR. The company ended the quarter with 518 installations worldwide for its IMEXHS Enterprise and IMEXHS Cloud products, a 12% increase compared to Q2 FY23.
The sales pipeline for both IMEXHS Software and Radiology services remains strong, with software sales adding $0.7 million in the quarter and $1.2 million in the half-year in ARR. The software development program for the Enterprise New Value Proposition is on time and on budget, with early-stage product trials underway.
Financial Position
As of 30 June 2024, IMEXHS held cash and cash equivalents of $1.9 million, up from $1.4 million at the end of Q1 FY24. The company's debt decreased to $0.9 million from $1.2 million in the previous quarter. Net cash from operating activities was $0.3 million, with cash receipts of $7.1 million for the quarter.
IMEXHS also reported a net cash inflow of $0.2 million from investing activities, primarily due to the sale of an MRI scanner. Net cash used in financing activities was $0.1 million, with proceeds from a conditional placement offset by the repayment of borrowings and transaction costs.
The strong revenue growth and improved financial position are positive indicators for IMEXHS's stock. The increase in ARR and the reduction in debt suggest a solid foundation for future growth. Investors may view the new contracts and operational achievements as signs of the company's expanding market presence and improving profitability.
Investor Reaction:
Analysts are likely to react positively to the significant revenue growth and the company's strong financial position. The new contracts and ongoing improvements in service levels may boost investor confidence in IMEXHS's long-term prospects.
Conclusion:
Investors should consider the positive financial and operational performance of IMEXHS in Q2 FY24. The company's strong revenue growth, increased cash reserves, and new contracts indicate a promising outlook. Staying informed about IMEXHS's future developments and strategic initiatives will be crucial for making informed investment decisions.