Virtual healthcare solutions company Visionflex (ASX: VFX), known for its telehealth devices, medical equipment, and software solutions, has shared a solid financial projection for FY24 following a name change and business divestments.
The Company exited PetYeti and GoBookings, completed in March and May 2024, respectively, to concentrate exclusively on the Visionflex business division. Following a comprehensive review of its future prospects and opportunities for the Clinic Connect (branded PetYeti) and GoBookings businesses, Visionflex determined that it is in the best interest of shareholders to exit these businesses.
In FY24, the Company’s revenue is projected to exceed $8.1 million, reflecting a 25% increase from FY23. The Visionflex business division is expected to generate over $7 million in revenue, a 177% rise compared to FY23. The underlying EBITDA loss for FY24 is anticipated to be around $0.9 million, an improvement from the $4.2 million loss in FY23.
Looking ahead to FY25, it aims to achieve a positive EBITDA, driven by growing enterprise sales and increasing annual recurring revenue (ARR).
VFX CEO Joshua Mundey stated, “Our selection by large enterprise customers continues to demonstrate our value as innovative and trusted partners in the transition to virtual healthcare. With an estimated $112 billion in government healthcare funding for 2024-2025, we are well-positioned to leverage key opportunities for substantial growth. We are confident in our strategic direction and well-positioned to capitalise on emerging opportunities in the healthcare sector.”
Visionflex, formerly known as 1st Group, was founded by two Australian engineers and has evolved into a global virtual healthcare platform. It facilitates medical professionals in diagnosing, monitoring, and treating patients through a secure and private network. The Company rebranded on November 2, 2023, to Visionflex Group Limited, following the divestment of its MyHealth1st business in June 2023.
In H2 FY24, Visionflex is projected to achieve $3.7 million in revenue, up 146% from H2 FY23, driven by increased recurring software and support revenue (ARR). Accelerated sales growth is expected to continue in FY25, with ARR becoming a larger proportion of total revenue.
In Q3 FY24, it generated revenue of $2.1 million, up 194% on the $0.7 million generated in Q3 FY23. Visionflex contracted ARR of $7.1 million, with $0.4 million of new contracted ARR sold in Q3 FY24, up 40% from Q2 FY24.
It closed Q3 FY24 with a cash balance of $900k and $2 million in undrawn finance facilities. It continued its expansion into residential aged care facilities with $1.2 million of new purchase orders from Primary Health Networks.
In the same period, Visionflex secured annual software orders worth $700k from Northern Queensland PHN to an initial 33 residential aged care facilities across Northern Queensland. Visionflex also secured its third purchase, WA Primary Health Alliance, for $0.5 million.
For FY25, Visionflex is targeting being EBITDA positive, focusing on accelerating large enterprise sales in core verticals, i.e. aged care, hospitals, indigenous healthcare, and in-home care.
Alinda is a Business Reporter for The Sentiment
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