IMEXHS Limited reported modest revenue growth and a 16% increase in ARR in Q1 FY25, alongside the commercial rollout of its Aquila+ radiology platform and a $2.5 million capital raising to fuel expansion.
- Q1 FY25 revenue of $7.1 million, up 1% year-on-year
- Annual Recurring Revenue (ARR) increased 16% to $31.4 million
- Aquila+ platform now live at eight sites with new contracts secured
- Underlying EBITDA slightly down to $0.1 million but aligned with plan
- Capital raising of $2.5 million underway to support growth initiatives
Financial Performance and Capital Strategy
IMEXHS Limited (ASX: IME) has delivered a steady start to FY25, reporting Q1 revenue of $7.1 million, marking a 1% increase compared to the prior corresponding period (pcp). When excluding a one-off $0.46 million sale in the pcp, revenue growth rises to 8%, reflecting underlying business momentum. The company’s Annual Recurring Revenue (ARR) climbed 16% to $31.4 million, or 20% on a constant currency basis, underscoring the strength of its subscription-based software and radiology services model.
Underlying EBITDA for the quarter was $0.1 million, slightly down from $0.2 million in the pcp but consistent with management’s expectations. This marginal decline is attributed to increased investments in sales, marketing, and product development as IMEXHS positions itself for accelerated growth in the second half of the year.
Cash reserves stood at $0.6 million at quarter-end, down from $2.1 million at December 2024, reflecting seasonal cash flow patterns and timing of customer payments. To bolster its financial position, IMEXHS announced a $2.5 million capital raising in early April, comprising a $1.5 million institutional placement completed mid-April and a $1.0 million conditional placement to directors pending shareholder approval. Additionally, a Share Purchase Plan is underway to raise up to $1.0 million, aimed at supporting ongoing growth initiatives.
Commercial Launch of Aquila+ and Contract Wins
The quarter marked a significant milestone with the commercial launch of Aquila+, IMEXHS’s next-generation AI-enabled radiology platform. Aquila+ is now operational at eight sites, with further implementations progressing under new contracts. The platform promises enhanced speed, accuracy, and cost efficiencies, benefiting patients, clinics, radiologists, and IMEXHS alike.
New software contracts secured during Q1 include a three-year agreement with Clínica del Occidente, a leading Colombian private hospital renowned for trauma and oncology care, expected to contribute $94,000 in new ARR. Another contract with Hospital Universitario Hernando Moncaleano Perdomo, a major public teaching hospital, will see Aquila+ replace incumbent imaging systems, supporting over 6,000 studies monthly. What's more, an extension with existing client Diodiagnostico added $48,000 in new ARR, bringing that client’s total ARR to $490,000.
Operational and Product Developments
IMEXHS continued to enhance its software suite during the quarter, focusing on system optimizations, workflow automation, and user experience improvements. Key updates included the completion of the Transcription and Validation Module for Aquila+, integration of WhatsApp notifications in the Patient Portal to align with Latin American communication preferences, and upgrades to the Universal Viewer and PACS infrastructure to bolster security and scalability.
On the sales front, the appointment of Juan David Fajardo as Vice President of Global Sales and Marketing has injected fresh leadership. His extensive international experience is expected to accelerate pipeline development and conversion of new opportunities, with early initiatives including partner program enhancements and targeted marketing campaigns for Aquila+.
Outlook and Market Positioning
Management remains optimistic about the year ahead, anticipating strong revenue growth and a return to EBITDA and cash positivity in FY25, particularly in the second half. The Radiology Profit Improvement Program is underway, focusing on pricing and productivity enhancements, while the rollout of Aquila+ is expected to drive software sales momentum. The company plans to provide more detailed guidance at the half-year results.
IMEXHS’s strategic emphasis on cloud-based, AI-enabled medical imaging solutions positions it well within a growing healthcare technology market. Its footprint across 18 countries, including key markets in Latin America, the US, and Australia, coupled with a scalable SaaS platform, offers a compelling growth narrative as healthcare providers increasingly seek efficient, secure, and cost-effective imaging solutions.
Bottom Line?
IMEXHS’s Q1 progress with Aquila+ and capital raising sets the stage for a pivotal H2, but execution risks remain on cash flow and sales conversion.
Questions in the middle?
- Will the ongoing capital raising efforts fully secure IMEXHS’s funding needs beyond Q2?
- How quickly can Aquila+ deployments translate into meaningful revenue growth and improved margins?
- What impact will currency fluctuations have on IMEXHS’s international revenue and profitability?