Mach7 Technologies (M7T) H2 2024 earnings summary

Executive summary

• Transitioned from capital software sales to a subscription-based model, driving strong growth in recurring revenue and maintaining positive operating cash flow throughout FY 2024.

• Achieved record sales orders of AUD 61.3 million, up 52% year-over-year, with significant contract renewals and 80 contract wins across diverse healthcare segments.

• Recurring revenue increased 29% year-over-year, now representing 72% of total revenue.

• Maintained disciplined cost management, with OpEx growth under 15% and no debt.

• Completed a large renewal program, securing a foundational book of business for the medium term.

Financial highlights

• FY 2024 revenue was AUD 29.1 million, in line with revised guidance of AUD 27–30 million, down 3% year-over-year.

• Recurring revenue reached AUD 21.1 million, up AUD 4.7 million or 29% year-over-year, now 72% of total revenue.

• CARR at AUD 27.9 million (up 35% year-over-year); ARR run rate at AUD 22 million.

• Adjusted EBITDA was -AUD 2.0 million; NPATA was -AUD 1.2 million; NPAT was -AUD 8.0 million.

• Record cash receipts of AUD 34.9 million; closing cash balance of AUD 26.2 million, up 12% year-over-year, and no debt.

Outlook and guidance

• FY 2025 focus on CARR growth, net new customer acquisition, and continued expansion in APAC and North America.

• Planned AUD 2–3 million investment in people, systems, and tools, included in OpEx guidance, to support a three-year innovation strategy.

• FY 2025 guidance: 15–25% growth expected in both CARR and revenue, with opex growth in the same range.

• Profitability expected to be delayed by a year due to investment, with ARR projected to cover OpEx by FY 2027.

• EBITDA guidance for FY 2025 is approximately AUD 1 million positive.