Pro Medicus (PME) H2 2024 earnings summary

Executive summary

• Achieved record financial results in FY24, with revenue up 29.3% to $161.5m and net profit after tax up 36.5% to $82.8m, driven by strong North American sales, major contract wins, and successful cloud-based implementations.

• Secured nine new cloud-based contracts and completed nine implementations, expanding presence in academic, IDN, pediatric hospitals, and private radiology groups.

• Launched Visage Ease VP for Apple Vision Pro, reinforcing technology leadership and receiving early positive feedback from pilot clients.

• Maintained a debt-free, strong balance sheet, increased final dividend by 33.3% to 22c per share, and achieved 100% client retention.

Financial highlights

• Revenue rose 29.3% year-over-year to $161.5m; profit after tax increased 36.5% to $82.8m; underlying EBIT up 33.8% to $112.3m; EBIT margin at 69.5%.

• Cash and investments grew 27.9% to $155.4m; company remains debt free.

• Final fully franked dividend of $0.22, up 33.3% year-over-year; full-year dividend up to 40c.

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

• Top 10 customers contribute about 25% of total sales, with concentration risk decreasing as new clients are added.

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; US imaging market is 650 million exams annually, growing at 3.5% per year.

• Strategy focused on expanding client base, transaction growth, and new product offerings, including AI and cardiology modules positioned for future growth.

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