Volpara Health Technologies : Appendix 4C Q4FY22 Quarterly Cash Flow Report

ASX RELEASE

Appendix 4C - Q4FY22 Quarterly Cash Flow Report

Cash Highlights:

• • Record quarterly cash receipts from customers of NZ$8.0M, up approx. 48% compared to Q4FY21 (or over 49% constant currency)

• • Subscription-based receipts in Q4FY22 of over NZ$7.5M, up approx. 39% compared to Q4FY21 (or approx. 41% constant currency)

• • Unaudited cash receipts for the full year ended 31 March 2022 of ~NZ$28.5M (or NZ$29.6M constant currency), up almost 45% year on year (or 50.5% constant currency)

• • Net operating and investing cash outflow1 in Q4FY22 of NZ$2.9M, an improvement of 20% from NZ$3.6M in Q3FY22

• • NZ$18.2M cash on hand at end Q4FY22

Software as a Service (SaaS) Highlights:

• • Annual Recurring Revenue (ARR) now ~US$22.2M (~NZ$31.8M2), up over US$700k on the prior quarter (Q3FY22)

• • Record net new ARR added in FY22 of over US$3.6M (NZ$5.2M), or up ~38% on previous best ~US$2.6M in FY21

• • Coverage of over 35.5% of US women being screened, up from prior quarter of ~35%

• • Average Revenue Per User (ARPU) over the installed base of US$1.51 at end Q4; average ARPU for all deals in Q4 of US$3.15-ranging from US$1.00 to US$7.50

• • SaaS churn remains low

Wellington, NZ, 19 April 2022:Volpara Health Technologies ("Volpara," "the Group," or "the Company"; ASX:VHT), a global health technology software leader providing an integrated platform for the delivery of personalised breast care, has released its Appendix 4C Quarterly Cash Flow report for the quarter ending 31 March 2021.

On Q4FY22, Volpara Group CEO Dr Ralph Highnam said, "This was a milestone quarter for us commercially, with ~NZ$8M of cash receipts and our net cash outflow dropping below NZ$3M demonstrating the renewed focus we have on profitability with strong growth. It all bodes well for the future especially given the new wave of innovation we're looking to bring to the market leveraging the data we've been so assiduously collecting for the last few years."

1 Includes payments to acquire intellectual property from investing activities, which includes product development. Excludes one-off investment in RevealDX and settlement of net working capital adjustment related to the acquisition of CRA Health, LLC.

2 Twelve-month trailing exchange rate used of US$0.698:NZ$1 vs US$0.707:NZ$1 at end Q3FY22.

Cash receipts from customers were the strongest on record with ~NZ$8.0M received, up approx. 48% of Q4FY21 or 49% in constant currency. Volpara's unaudited cash receipts from customers for FY22 totalled over NZ$28.5M, up approx. 45% on prior years NZ$19.7M, or 50.5% constant currency.

Net operating and investing cash outflow in Q4 was NZ$2.9M,3 an improvement on last quarter's outflow of NZ$3.6M. The direction of travel of operating cash flows continues its downward trend as we focus on continued growth in top-line cash receipts and prudent cash management.

3 Includes payments to acquire intellectual property from investing activities, which include product development. Excludes one-off investment in RevealDX and settlement of net working capital adjustment related to the acquisition of CRA Health LLC.

The Company maintains a strong cash position at the end of Q4, with NZ$18.2M in the bank.

Currently, Volpara has no debt on its balance sheet.

Overall, the Company added over US$700k of ARR in Q4. Contracts continue to be signed across Volpara's full product suite as both platform deals and standalone sales, with no particular weighting towards one specific product. Dr Highnam said "Q4 was solid for sales, but we did have a number of deals move around due to the ever-increasing cyber security requirements. Fortunately, that is one area where we are particularly strong and will become a key differentiator for us in the longer term".

Total net new ARR added over the whole year was US$3.6M, approx. 38% higher than the prior year.

ARPU for the installed base increased from US$1.47 at the end of Q3FY22 to US$1.51 at the end of Q4, with an average ARPU for deals in Q4 of US$3.15 and a range of US$1.00 to US$7.50.

ARR (US$)

24,000,000

22,000,000

US $3.6M organic growth

20,000,000

18,000,000

CRA

16,000,000

14,000,000

US $2.6M organic growth

12,000,000

10,000,000

Q4FY20

Q1FY21

Q2FY21

Q3FY21

Q4FY21

Q1FY22

Q2FY22

Q3FY22

Q4FY22

Other Recent Operational Highlights for the Quarter

Giotto distribution deal and initial contracts

Volpara has signed a distribution deal with IMS Giotto to sell Volpara® Scorecard™ software in Italy. Multiple orders are in place, with the possibility of up to 100 -leading Italian breast imaging sites part of the CONSIP x-ray equipment tender won by IMS Giotto.

Fuji distribution deal with Cleveland Clinic Abu Dhabi

In a collaboration with Fujifilm FZE (Middle East and Africa), Volpara has signed its first deal in the Middle East, with Cleveland Clinic Abu Dhabi. A not-for-profit multi-speciality academic medical center, Cleveland Clinic was recently named the top hospital in the United Arab Emirates, and placed in the top 150 global hospitals, in the 2022 World's Best Hospital index compiled by Newsweek and Statista Inc. The hospital, a Mubadala Health partner, celebrated its 100th anniversary last year.

Biden's Cancer Moonshoot Relaunch

In February, Joe Biden reiterated the White House's determination to reduce cancer deaths by 50% in the next 25 years. Encouragingly, the associated documentation talked about breast density and about breast cancer risk assessment and the need for better IT to support the decision-making process; all helping build the tailwinds for Volpara's personalized screening tools.

EUSOBI announcement

The European Society of Breast Imaging released new breast screening recommendations based on the results of the DENSE trial, a 10-year research study that included Volpara®Density™ software. The EUSOBI now recommends that all European mammography providers offer breast MRI to women with extremely dense breasts. This recommendation is based on a microsimulation model of the DENSE trial results, which showed a significant reduction in interval cancers in women identified by VolparaDensity as having extremely dense breasts and then receiving breast MRI. The EUSOBI considered the mounting evidence of the risks associated with extremely dense breast tissue, notably the twice-greater likelihood of developing breast cancer and the significant reduction in mammographic sensitivity. The EUSOBI's additional recommendation to notify women of their breast density at the time of screening presents a significant opportunity for Volpara to expand its presence in the sizable European market, in which 17.9 million4 women are screened for breast cancer each year.

99th patent - breast arterial calcifications

Volpara was granted its 99th patent by the US Patent and Trademark Office for a new method for the detection and quantification of breast arterial calcifications (BACs)-inappropriate and pathological mineral depositions in the mammary arteries. This method builds on the Company's approach to quantitative and objective breast density scoring, creating a tissue composition map that includes calcifications and vessel from a mammogram and then generating a score that indicates the likelihood of disease in the breast or other organs. This patent signals the potential for Volpara's automated, artificial intelligence-based software tools to provide objective, clinical value beyond the breast cancer space, in this case enabling the triage of patients to cardiac care and interventions, subject to further development and completing a commercial software product deploying the new patented technique.

100th patent - quantification of images

Volpara was granted its 100th patent in March. The patent is for an improved automated method to quantify tissue in a medical image, based on comparison of energy to determine attenuation and thereby an estimate of tissue density.

The advantages are that a woman's breast composition and her risk of breast cancer can be calculated at an early age using low radiation dose. This improves the outcome for the patient and optimises clinical workflow.

4Signfiy Research

This 100th patent has been granted in China, the latest country in the international reach of the patent. China is currently the number 1 territory in the world for medical imaging patenting and the China National Intellectual Property Administration sets a very high standard for the grant of patents. All Volpara's Chinese applications have been granted so far, and with nine further applications in progress our protection in China represents a milestone for Volpara's patent portfolio.

Data - 60M raw breast x-ray images now in Volpara's Cloud

Volpara hit a milestone of over 60M raw breast x-ray images from over 5.5M unique women are now stored in the Cloud, this is one of the biggest datasets globally and when those images are matched up with de-identified patient data they could become the catalyst for a new wave of innovation to help save families from cancer. Dr Highnam talked extensively about this data set and the relevant of the raw data in a recent Aunt Minnie presentation on "AI in Breast Clinical Practice" that can be found at thislink.

Other

The payments to related parties of the entity and their associates included in item 6.1 of the Appendix 4C relates to salaries paid to executive directors and fees paid to non-executive directors.

Webinar details

Date: Tuesday 19th April 2022

Time: 9:00am AEDT (Sydney/Melbourne), 11:00am NZDT (Auckland/Wellington) To register:https://us02web.zoom.us/webinar/register/WN_jtibfTcCS4qFjLwmZVqKKA Dial in details: Will be provided to you upon registration

Authorisation & Additional Information

This announcement was authorised by the Board of Volpara Health Technologies Limited.

ENDS

For further information, please contact:

About Volpara Health Technologies Limited (ASX:VHT)

VHT is a health technology software company founded in 2009 on research originally conducted at Oxford University. VHT's clinical functions for screening clinics provide feedback on breast density, compression, dose, and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement, and patient tracking.

This is an excerpt of the original content. To continue reading it, access the original document here.