Pro Medicus shares advance as FY24 profit beats consensus
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More news: Pro Medicus shares gained on the ASX as the medical software group reported a jump in full-year net profit and hiked its final dividend.
Shares were up 6% to $139.54 by 11:15am AEST, having added more than 90% over the last 12 months.
RBC Capital Markets analyst Garry Sherriff said Pro Medicus' revenue result was in line with market estimates, as profit, free cash flow and net cash beat consensus.
What they said: "No specific guidance per usual, noting increased client cloud adoption has streamlined implementations as well as being a competitive advantage for [Pro Medicus'] cloud-native Visage products," Sherriff said.
"Outlook commentary remains positive with healthy pipeline on '...an increased cadence of inbound RFPs [requests for proposal] across a broad range of market segments'."
Pro Medicus posts 36.5% profit rise, CEO hails 'record' year
The news: Medical software group Pro Medicus reported a jump in net profit for the 2024 financial year and hiked its final dividend as a surge in revenue from North America and Australia offset a decrease in Europe.
The numbers: Pro Medicus recorded full-year net profit of $82.8 million, up 36.5% year on year. The company's cash and other financial assets were $155.4 million by the end of June, up 27.9% compared to a year earlier.
Revenue from ordinary activities grew 29.3% to $161.5 million. North America (34.4%) and Australia (5.9%) made gains year on year, while Europe lowered 6.7% due to a one-off revenue boost in FY23 following a sale to a German hospital.
Pro Medicus won nine contracts during the year, with a combined minimum value of $245 million, including its largest contract to date with Texas-based not-for-profit Baylor Scott & White.
The company declared a fully franked final dividend of 22 cents per share, taking the full-year dividend to 40 cents, an increase of 33.3%.
The context: Pro Medicus CEO Sam Hupert said strong growth in North America, which now accounts for nearly 90% of the company's revenue, was due a number of factors, including "our propriety streaming technology, our proven ability to seamlessly implement in a fraction of time compared to our peers and the fact that we are arguably the only vendor that can fully deploy in cloud at scale".
The Melbourne-based company — which provides medical imaging software and services to hospitals, imaging centres and health care groups worldwide — also said that its increased EBIT margins, rising from 67.2% to 69.5%, are "industry leading and have been for many years".
What they said: "All of our key financial metrics moved in the right direction resulting in another record year, not just in terms of revenue and profits, but also other metrics like sales and implementations, so we think it was a very strong result," Hupert said.
"Clearly maintaining growth rates of 30% plus year on year gets harder as the base gets bigger but we believe we can maintain our trajectory of strong, profitable growth."
The sources: ASX announcement, ASX announcement
