The Alcidion (ASX:ALC) share price has pushed nearly 9% higher after the company reported strong growth underpinned by an upbeat outlook.
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Alcidion Group Ltd (ASX: ALC) shares are on the rise today after the company recorded one of its strongest sales periods to date. At the time of writing, the Alcidion share price has jumped 8.7% to 25 cents.
Let’s take a look at how the tech company has been performing.
Alcidion share price surges on strong earnings
The Alcidion share price is running higher today following the company delivering strong earnings growth during the first half of FY21 (1H21). Alcidion reported that revenue for the period increased by 36% to $11.1 million.
The company added $17.4 million in contracted revenue in the first half, one of its strongest sales periods to date. A further $23.0 million of sold revenue will also be recognised over the next five years from FY22 to FY26.
Significant contracts were signed in the United Kingdom and Australia, including with NHS Trust for Alcidion’s largest-ever smart clinical solution, Miya Precision. Other significant contract wins include 12-month contracts signed with New South Wales Government local health districts Murrumbidgee and Sydney.
Strong revenue growth also translated into an improved earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $912,000 compared to a $1.7 million EBITDA loss in 1H20.
Alcidion believes it is advantageously positioned for the second half of FY21, with the health IT sales environment progressively returning to pre-COVID-19 levels.
The company’s current sales revenue is growing strongly and is on track to surpass FY20 revenue. Contracted revenue in FY21 is already 17% higher than the year prior with four months of the year still remaining.
The company is upbeat about its sales pipeline, citing new and existing customers in all markets being underpinned by a strong recovery in health IT procurement.
Alcidion helps healthcare organisations leverage the power of technology to create a clinically relevant environment with digitally enabled care. The company’s flagship product is its Miya Precision solution that facilitates multiple clinical and operational applications.
Over the past twelve months, the Alcidion share price has jumped by nearly 39%. Year to date, Alcidion shares are trading nearly 32% higher.
Based on the current share price, the company commands a market capitalisation of around $248 million.
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Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.