Key points
- Recurring revenue up 28% to $12.65 million
- Subscription and software licence revenue up 77% to $9.88 million
- NPATA of $1.4 million, demonstrating profitability
Full summary
Mach7 Technologies Limited reported a 33% increase in revenue to $17.74 million for the half-year ended 31 December 2024, driven by a 28% increase in recurring revenue to $12.65 million and a 105% increase in software licence revenue to $3.54 million. The company's focus on customer intimacy and 'land and expand' strategy has been successful, with the group reporting $16.2 million in sales orders for the half-year, of which 62% was related to subscription and maintenance and support sales. The ongoing transition to a predominantly subscription model will result in higher quality recurring revenue and greater predictability of future earnings and cash flows. The group reported NPATA of $1.4 million, demonstrating profitability in the absence of amortisation of intangibles associated with the acquisition of Client Outlook. Operating expenses increased by 15%, reflecting careful cost management. The group remains confident in its ability to execute and deliver value to shareholders throughout FY25.
Guidance
Mach7 reaffirms its FY25 guidance for 15-25% growth in Contracted Annual Recurring Revenue (CARR) and revenue on PCP and for OPEX growth to be less than revenue growth.
Outlook
Mach7 continues to be a leading innovator in the enterprise imaging space, with a portfolio of interoperable solutions that underpin the imaging strategies of both acute and non-acute care facilities. The company is well-positioned to capitalize on the evolving healthcare landscape, with purchasing decisions increasingly driven by C-suite executives who have longstanding relationships with Mach7 in the data management sector. Mach7's strong partner ecosystem and robust sales pipeline provide a favourable sales environment, and the company remains confident in its ability to execute and deliver value to shareholders.