Pro Medicus (PME) H2 2024 earnings summary

Executive summary

• Achieved record financial year with revenue up 29.3% to $161.5M and profit after tax up 36.5% to $82.8M, driven by strong sales, new contract wins, and successful implementations, particularly in North America.

• Nine new cloud-based contracts and nine implementations completed, expanding presence in both academic and non-academic (IDN) hospital segments.

• Launched Visage Ease VP for Apple Vision Pro, reinforcing technology leadership, with pilots at UC San Diego and other clients.

• Maintained 100% client retention rate, with no lost contracts in the year.

• Maintained a debt-free, strong balance sheet and increased final dividend by 33.3%.

Financial highlights

• Revenue increased 29.3% year-over-year to $161.5M and profit after tax rose 36.5% to $82.8M.

• Underlying EBIT up 33.8% to $112.3M; EBIT margin at 69.5%.

• Margins improved further due to scalable SaaS model and cost containment.

• Record final dividend of AUD 0.22 fully franked declared, up 33.3% year-over-year.

• Forward contracted revenue now AUD 624 million over five years, with upside potential as client exam volumes grow.

Outlook and guidance

• Strong pipeline with increasing inbound RFPs, especially in North America, and continued growth expected in FY25 and beyond.

• Large addressable market in North America with only 7% current penetration.

• Transaction growth from existing clients is 2-3 times industry average, with further upside from new product modules and geographic expansion.

• Margins expected to remain stable at current high levels, with potential for further leverage as revenue grows.

• No material revenue expected from AI and cardiology in the near term, but these are positioned for future growth.