Alcidion grows recurring revenue base, while investing to accelerate growth
Alcidion (ASX: ALC) has today released its audited full year results and Annual Report to Shareholders for the Financial Year ended 30 June 2020 (FY2020).
- $18.6M revenue reported for FY2020, 10% increase vs FY2019;
- Recurring revenue significantly increasing to $10.5M, 35% up on the prior year;
- Net loss of $3.1M, reflecting planned investments to accelerate growth;
- Cash reserves of $15.9M, well capitalised to support further growth in FY2021;
- Significant product contracts signed in the UK and Australia
- Entering FY2021 poised for further growth, with strong pipeline of potential business and $12.8M already contracted revenue to be recognised in FY21.
Alcidion has continued to grow revenue, delivering full year revenue of $18.6M, up 10% on the prior year. Notably, the recurring revenue base has increased by 35% year on prior year to $10.5M. This growth was achieved despite the challenges arising from the COVID-19 pandemic in the second half, which has seen healthcare resources focused on managing the outbreak. Over the past year the company has signed several strategically significant contracts in each of its markets, increasing its customer base, with 307 hospitals across the UK, Australia and New Zealand now using an Alcidion product.
Recurring vs non-recurring revenue YTD ($M)
The Company has entered FY2021 in a strong position, with $12.8M sold revenue already contracted to be recognised in FY2021, subject to milestone achievement, and a healthy sales pipeline.
Operationally, Alcidion is executing on its strategy to accelerate growth, focused on increasing share in
its three existing markets, the UK, Australia and New Zealand.
Investments are being made to expand UK and ANZ sales and marketing capabilities, improving product management, expanding product development and scaling up Group infrastructure that will be needed to support growth.
As a consequence of investments made, net operating cash outflows were $2.0M in FY2020 and Alcidion delivered a net loss after tax of $3.1M in FY2020.
The company has maintained a healthy cash balance, with cash reserves of $15.9M at the end of June. In November 2019, the company raised $16.2M via an oversubscribed placement to institutional investors. The Company is committed to continuing to invest for growth in FY2021 and remains wellcapitalised to pursue this growth strategy.
Kate Quirke said, “We have a tremendous growth opportunity ahead of us. While COVID-19 has presented short-term challenges, it has also served to underline the important role that Alcidion’s solutions can play in giving healthcare providers a cohesive view of data, risks and resources, enabling them to make informed decisions quickly and drive better outcomes for patients. Our technology is a key component of our customers’ transition to digital healthcare.
During the year, we took significant steps to ready the organisation for our anticipated growth in FY21 and beyond. We established important reference sites in our three markets, bolstered our sales and marketing capabilities, increased scale and evolved the product suite. As we complete the investment phase in FY21, we would expect to see revenue growth accelerate and the cost base stabilise. I have been proud of the resilience and progress we have shown this year, despite the issues presented by