Alcidion (ASX:ALC) share price jumps 14% on solid earnings

This healthcare software provider has delivered solid results today…
The post Alcidion (ASX:ALC) share price jumps 14% on solid earnings appeared first on The Motley Fool Australia. –

The Alcidion Group Ltd (ASX: ALC) share price is delivering gains to shareholders on Tuesday.

At the time of writing, the healthcare software provider’s shares are swapping hands for 40.5 cents, up 14%.

Why is the Alcidion share price surging ahead?

The release of the company’s fourth-quarter result has lit a fire under the Alcidion share price today. A big contributor to the excitement for investors is the record revenue for FY21, positive operating cash flow, and increased market share.

According to the release, the company achieved $25.6 to $25.9 million in revenue for FY21. This represents an increase of between 38% to 39% on the prior corresponding period. The company achieved this revenue growth despite challenges posed by COVID-19.

Additionally, the company achieved a positive net operating cash flow of $1.6 million in the fourth quarter. Likewise, full-year operating cash flow came out at $1.1 million.

New and renewed contracts during the quarter came to a total contract value of $7.3 million. Impressively, this reflects a 52% uplift from Q3 and nearly double that of the prior corresponding period.

Another positive was its 18% jump to $15.1 million in contracted revenue to be recognised in the coming year. Approximately 72% of this contracted revenue is recurring in nature – this includes subscription fees, product license fees, etc.  

Management commentary

Commenting on the record result, Alcidion’s Managing Director, Kate Quirke said:

Alcidion has delivered a strong final quarter to close an exceptional year of growth. FY21 revenue is expected to be in the range of $25.6M-$25.9M, a record result for the company despite being generated in challenging circumstances under the backdrop of COVID-19, particularly in the UK. Pleasingly, we delivered positive operating cashflow in Q4 and for the full year, highlighting the shift into a sales acceleration phase. ExtraMed contributed $600k to this revenue, being 2.5 months’ worth of activity

Quirke added:

We have been able to increase market share across all our core geographies, signing important new and renewed contracts that provide a solid foundation heading into the new financial year. It was particularly pleasing to extend the contract with Western Health for the provision of Miya and to sign contracts to continue to provide integration services to NSW Health. Contract renewals signify customer satisfaction and the positive relationship the company has with its customers.

Cash position

Thanks to a positive cash flow period, Alcidion finished the quarter with $25 million in cash on hand. This compares to $15.9 million in the prior year. Over the past year, the company has taken advantage of its spare cash to make accretive acquisitions, such as the ExtraMed acquisition in April.

At the time of writing, the Alcidion share price indicates a market capitalisation of $419 million.

The post Alcidion (ASX:ALC) share price jumps 14% on solid earnings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alcidion right now?

Before you consider Alcidion, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alcidion wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

‘That hurts’: Fund manager reveals his 35-bagger ‘failure’

3 growing small cap ASX shares to watch

4 fast-growing ASX small cap shares that you may have overlooked

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!