Resonance Health has reported record quarterly customer receipts of $5 million, a 57% increase from the previous quarter, alongside a major $13.8 million clinical trial contract win, signaling robust growth across its healthcare technology and clinical trial services.
- Record quarterly customer receipts of $5 million, up 57% from prior quarter
- Major clinical trial contract worth $13.8 million announced in November 2024
- Positive operating cash flow of $1.1 million for the quarter and $2.5 million over 12 months
- TrialsWest acquisition performing strongly with $3.2 million deferred payment made
- Cash balance of $3.5 million and net cash of $0.5 million after debt
Robust Revenue Growth and Cashflow
Resonance Health Ltd (ASX: RHT) has delivered a standout quarterly performance for the three months ending 31 December 2024, posting record receipts from customers of $5 million. This represents a 57% uplift from the previous quarter’s $3.2 million and a striking 142% increase compared to the same period last year. Over the last twelve months, the company’s customer receipts have climbed to $13.1 million, a 29% increase from the prior twelve-month period, marking a significant step-change in its cashflow profile.
Positive cashflows from operating activities of $1.1 million for the quarter and $2.5 million over the year underscore the company’s improving financial health and operational efficiency. Resonance Health’s balance sheet remains solid with $3.5 million in cash at quarter-end, offset by $3 million in bank debt related to the TrialsWest acquisition.
Strategic Expansion in Clinical Trial Services
The company’s Clinical Trial Management (CRO Services) segment continues to be a key growth driver. In November 2024, Resonance Health announced a major clinical trial contract valued at $13.8 million over 24 months, adding to total contract wins exceeding $20 million since August 2023. The CRO Services business unit generated $2.4 million in receipts this quarter from managing these trials, with approximately $13.3 million remaining to be invoiced over the next two years.
Complementing this, the TrialsWest clinical trial site services business is trading well ahead of expectations. The company made a $3.2 million deferred acquisition payment this quarter to TrialsWest vendors, reflecting strong FY2024 trading performance. TrialsWest has expanded its footprint with a second site north of Perth opened in August 2024 and plans underway for a third site south of Perth, enhancing capacity to support both new and existing pharma customers.
Innovation in Software-as-a-Medical Device (SaMD)
Resonance Health’s SaMD division is advancing its technology pipeline, including the ongoing Extended-Proof-of-Concept trial for its new Non-Invasive MRI Liver Fibrosis product. Additionally, the company has agreed to provide a new central-read analysis service for Magnetic Resonance Elastography (MRE) to support the major clinical trial announced in November. This service represents a promising growth avenue for the SaMD business, potentially expanding to other clinical trial customers in the future.
The company’s suite of regulatory-cleared SaMD products, including FerriScan®, FerriSmart®, HepaFatScan®, and LiverSmart®, continues to underpin its reputation for scientific rigor and quality in non-invasive disease assessment technologies.
Outlook and Market Position
Resonance Health’s strategic focus on scaling its three core business areas, SaMD, CRO Services, and TrialsWest, is yielding tangible results, with record revenues and expanding clinical trial contracts. The integration of AI-driven efficiency tools in its service centre further positions the company to enhance report generation capacity and operational scalability.
While the company’s financial footing is strong, the successful execution and timely completion of ongoing clinical trials will be critical to sustaining momentum. Investors will be watching closely how these developments translate into future revenue streams and profitability.
Bottom Line?
Resonance Health’s record growth and major clinical trial wins set the stage for a pivotal year ahead in healthcare innovation and clinical services.
Questions in the middle?
- How will the new $13.8 million clinical trial impact revenue recognition and margins over the next two years?
- What are the prospects and timelines for commercial rollout of the Non-Invasive MRI Liver Fibrosis SaMD product?
- How will expansion of TrialsWest sites influence capacity and profitability amid growing clinical trial demand?