IMEXHS Reports $26.5M FY24 Revenue, 20% ARR Growth Amid Currency Shifts

Strong Financial Growth Amid Currency Fluctuations

IMEXHS Limited (ASX: IME), a cloud-based medical imaging software and radiology services provider, has reported a significant 34% increase in revenue for FY24, reaching $26.5 million. The company’s Q4 revenue rose 7% year-on-year to $6.1 million, or 15% on a constant currency basis, reflecting solid operational momentum despite currency headwinds from the Colombian Peso’s volatility.

Annual Recurring Revenue (ARR), a key metric for subscription-based businesses, climbed 20% to $30 million, underscoring the strength of IMEXHS’s recurring income streams. Notably, 59% of software ARR is now priced in hard currencies such as USD, AUD, and EUR, providing a natural hedge against local currency fluctuations.

Strategic Contract Wins Bolster Latin American Presence

IMEXHS expanded its footprint in Latin America with new contracts that contributed $370,000 in New Annual Recurring Revenue (NARR). The company secured a transformative agreement with Hospital General de Medellin, Colombia’s leading public healthcare institution, replacing its decade-old legacy system with IMEXHS’s Enterprise solution. Additionally, a new contract with DPI, a prominent diagnostic imaging provider in Peru, further strengthened the company’s position in the region.

In the radiology services segment, IMEXHS achieved its fourth consecutive contract renewal with the Colombian National Police, adding $352,000 in NARR. These renewals and new agreements reflect the company’s growing influence in the public healthcare sector and its ability to secure long-term partnerships under improved pricing terms.

Operational Enhancements and Product Innovation

IMEXHS continued to invest in product development during Q4 FY24, advancing its AQUILA Radiology Information System (RIS) and enhancing compliance with ISO 27001:2022 standards. The company also released updates to its Universal Viewer, including advanced 3D rendering and integration with ChatGPT to streamline radiologist workflows.

Other product improvements included enhanced security features, local study storage capabilities in the DICOM Gateway, and audit logging in the PACS system, all designed to improve efficiency, security, and user experience across its cloud-based platform.

Financial Discipline Amid Challenges

While IMEXHS reported an underlying EBITDA of $0.6 million for FY24, slightly below the guided range of $0.75 million to $0.9 million, this was impacted by a $0.3 million bad debt expense related to a slow-paying customer. The company has since entered a binding payment schedule with this customer, mitigating future risk.

Cash flow remained positive with $2.1 million in cash and equivalents at year-end, supported by prudent cost control measures and financing activities including $1.5 million raised from equity and $0.5 million in borrowings. Debt was marginally reduced to $1.2 million, reflecting a balanced approach to capital management.

Outlook and Market Positioning

IMEXHS’s continued expansion across 525 sites in 18 countries, combined with its focus on product innovation and compliance, positions it well to capitalize on growing demand for cloud-based medical imaging solutions. The company’s strategic emphasis on hard currency contracts and public sector partnerships in Latin America provides a resilient revenue base amid economic uncertainties.

Looking ahead, the successful rollout of the new RIS system and further penetration in key markets will be critical to sustaining growth and improving profitability.