Mach7s Strong H1 FY24 Performance and Subscription Model Shift

Mach7 Technologies Limited (ASX: M7T), specializing in medical imaging software, reports preliminary unaudited results for H1 FY24, showcasing robust performance. Sales orders reached AU$49.5 million (92% growth from H1 FY23), with Contracted Annual Recurring Revenue (CARR) at AU$26.8 million (30% increase from June 2023). Annual Recurring Revenue (ARR) rose to AU$18.6 million.

Total revenue was AU$13.3 million, down 19% YoY, while recurring revenue was AU$9.9 million, up 21%. Cash on hand increased to AU$22.7 million. FY24 guidance is updated, with sales orders surpassing AU$60 million and revenue at AU$27 million-30 million. The transition to a subscription model impacted short-term revenue, but the CEO, Mike Lampron, emphasizes the shift's long-term benefits, providing higher quality recurring revenue for enhanced earnings reliability. The company reaffirms its commitment to positive cash flow in FY24.

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