First Half FY25 Result
| Stock | MACH7 Technologies Ltd (M7T.ASX) |
|---|---|
| Release Time | 27 Feb 2025, 8:20 a.m. |
| Price Sensitive | Yes |
Mach7 Technologies Reports Strong H1 FY25 Results
- Contracted Annual Recurring Revenue (CARR) up 19% to A$31.8M
- Annual Recurring Revenue (ARR) run rate up 35% to A$25.1M
- Total revenue up 33% to A$17.7M
Mach7 Technologies Limited (ASX:M7T), a company specialising in innovative medical imaging software solutions, has reported its half year results for the six months ended 31 December 2024. The company delivered a pleasing H1 FY25 result with strong revenue and CARR growth alongside disciplined cost control, despite targeted investment in its three strategic pillars of cloud enablement, service & supportability, and integration & interoperability. Key highlights include: Contracted Annual Recurring Revenue (CARR) of A$31.8M at 31 Dec 2024, up 19% or A$5.0M on the prior corresponding period (PCP); Annual Recurring Revenue (ARR) run rate of A$25.1M at 31 Dec 2024, up 35% or A$6.5M on PCP; Total revenue of A$17.7M, up 33% or A$4.4M on PCP; OPEX growth of 15% on PCP, with recurring revenue now covering 80% of OPEX (H1 FY24: 72%); Sales orders of A$16.2M (TCV) compared to A$49.5M in H1 FY24, which was a large renewal period; Cash of A$23.6M at 31 Dec 2024, up 4% on PCP, and A$25.3M at 29 Jan 2025; and the commencement of an on-market share buy-back of up to A$5M on 3 Mar 2025. Looking ahead, Mach7 has realigned its sales team to focus on net new sales and pipeline conversion, and implemented a cost-out program to drive further operating leverage. The company reaffirms its FY25 guidance for 15-25% growth in CARR and revenue on PCP, and for OPEX growth to be less than revenue growth.
Mach7 reaffirms its FY25 guidance for 15-25% growth in CARR and revenue on the prior corresponding period, and for OPEX growth to be less than revenue growth.
In H2 FY25, Mach7 has realigned its sales team to focus on net new sales and existing customer relationships, and implemented a cost-out program to drive further operating leverage. The company's targeted investment in its three strategic pillars is now substantially completed, and Mach7 will continue to prioritise disciplined cost and cash management as it progresses towards profitability.