Visionflex Group (ASX: $VFX) FY24 Results

Visionflex Group (ASX: $VFX) has reported a significant 400%+ year-on-year increase in Annual Recurring Revenue (ARR) to $1.3 million as of June 30, 2024. The company's FY24 revenue reached $6.95 million, marking a 169% increase from the previous corresponding period. Despite this growth, the underlying EBITDA loss for FY24 was $0.7 million, an improvement from the $3.2 million loss in FY23. Visionflex has strategically exited loss-making businesses to focus solely on its virtual care solutions, with a clear pathway to achieving underlying EBITDA profitability in FY25.

Executive Commentary

The executive team at Visionflex is pleased with the company's performance in FY24, particularly the substantial increase in Annual Recurring Revenue and the strategic focus on achieving profitability in FY25. The accelerated growth in ARR reflects the strong demand for Visionflex's virtual care solutions across various industry verticals, including aged care, primary health networks, hospitals, indigenous healthcare, and the resource sector. The company's clear pathway to profitability in FY25 demonstrates its commitment to delivering sustainable growth and value to its stakeholders.

Outlook and Summary

Looking ahead, Visionflex aims to transition to recurring revenue through Software as a Service (SaaS) pricing, with a focus on obtaining a higher proportion of new customer sales as SaaS. The company has a growing pipeline of clients, including multiple government-funded customers across primary health networks and local health districts, as well as expansion opportunities in aged/home care, correctional facilities, the resources sector, and indigenous health. With recent orders from aged care providers and Woodside Energy, Visionflex is well-positioned to capitalize on the estimated $112 billion in government funding for healthcare in 2024-2025. Additionally, the company is actively pursuing international expansion, with a focus on the Americas, Europe, and Asia. Visionflex's board and executive management team bring a wealth of experience and expertise to drive the company's strategic plan for profitable growth, positioning Visionflex for continued success in the virtual care market.