ImExHS (IME) H1 2024 earnings summary

Executive summary

• Operates two main segments: cloud-based AI medical imaging software and radiology services outsourcing, with a presence in 19 countries and 518 software sites.

• Focused on scaling, profitability, and positive cash flow, with robust sales pipelines and product development in Latin America.

• Both software and radiology services achieved strong sales momentum and operational targets, with early margin improvements in radiology.

• Net loss after tax reduced by 33.8% to $1.52m compared to the same period last year.

• No dividends were paid or declared during the period.

Financial highlights

• Revenue for 1H FY24 was $13.8m (AUD 13.8m), up 57% year-on-year and 32% on a constant currency basis.

• Underlying EBITDA was $0.3m, down $0.2m year-over-year; EBITDA turned positive at $0.03m compared to a $1.0m loss in 1H FY23.

• Annualised Recurring Revenue (ARR) reached $29.6m, up 21% year-on-year and 25% since December 2023.

• Recurring revenue comprised 95% of total revenue ($13.1m).

• Cash at period end was $1.89m, with net assets at $15.1m and debt reduced to $0.9m.

Outlook and guidance

• FY24 revenue forecasted at $24.0–$27.0m (AUD 24–27m), a 22–37% increase over FY23.

• Underlying EBITDA expected between $1.5–3.5m, with current trends pointing to the lower end of EBITDA and upper end of revenue guidance.

• Key growth drivers: contracted ARR, expanding pipeline, price increases, upselling, and rollout of new software value proposition.

• Margin improvement and cost control remain key focuses for the second half.

• Company expects to achieve revenue guidance and be within the lower half of the EBITDA range.