Breast cancer AI firm Volpara sees strong cash receipts

Volpara chief executive Ralph Highnam. Photo / Supplied

ASX-listed Volpara Health Technologies collected its highest quarterly cash receipts since listing in 2016.

Wellington-based Volpara, which focuses on early detection of breast cancer using artificial intelligence, said it received nearly $5.0 million in the first quarter to June 20, up 112 per cent on the year. It was the fourth straight quarter with cash receipts over $4.5m.

"Q1 saw the emergence of Covid-19, but we're very heartened by the strong cash receipts, negligible churn, and the fact that we got a significant number of new deals over the line," said chief executive Ralph Highnam.

Net operating cash outflow in the first quarter was $3.7m, less than projected, and the lowest since it bought Seattle-based MRS Systems in June 2019.

Its largest expenses were $4.97m in staff costs and $2.2m in research and development.

The company had $67.5m in the bank at the end of the quarter.

Regarding orders it said it had "reasonable quarter" after a very strong fourth quarter, noting that the first quarter tends to be slower and this year was compounded by Covid-19.

Annual recurring revenue increased to $19.1m from $18m due to combination of new customers, upsells, customers commencing maintenance contracts for the first time and foreign exchange movements.

According to the company, it continues to cover approximately 27 per cent of US women who undergo screening and have had at least one group product applied to their images and data.

The annual revenue per user generated by women under contract across the group within US breast cancer operations is approximately $1.70 versus $1.61 at the end of the fourth quarter. ARPU per US woman for contracts signed in the first quarter ranged from US$1.87 to US$4.40 depending on the deal size and structure.

The company has yet to report a maiden profit and did not provide any guidance.

However, "we remain fully cognizant of the challenges ahead and are carefully plotting out new strategies so we can emerge from this crisis strong – Covid-19 will go away, cancer will not," said Highnam.