Transcription of Finance News Network Interview with Volpara Health Technologies Limited (ASX:VHT) Chief Commercial Officer, Mark KoeniguerCarolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from Volpara Health Technologies Limited
(ASX:VHT), is Chief Commercial Officer, Mark Koeniguer. Mark, welcome to FNN.
Mark Koeniguer: Thank you for having me today.
Carolyn Herbert: You head up Volpara’s sales division. Can you tell us about the team, distribution channels and market response?
Mark Koeniguer: After our most recent round of capital raised, it’s allowed us to do a couple of things with our breast imaging company. Number one, we’ve been able to move from a density only company to VolparaEnterprise. So we’ve launched a new product into the market and that market is focused on the quality assurance around breast imaging. And that allows three things in value proposition for our customers.
Number one, it looks at every image and provides analytics for every breast image, coming from the Gantry system. Two, it looks at all the assets within the department and provides analytics on those, as feedback to the breast-imaging manager. And finally, it does take a look at the staff efficiency over time. The second thing it’s allowed us to do is really go direct with our sales team. So we’ve hired a direct team in the United States and we combine that with strong partners like GE Healthcare and Siemens Healthcare.
Carolyn Herbert: What’s the average spend per clinic and what is the recurring revenue?
Mark Koeniguer: We look at this from an overall subscription model, or a SAS model. Then we charge based on a subscription per person, and we set it up where there’s a base fee for the licence. Number one, number two, there’s charges for the number of futures they buy and there’s also a vying component. The average spend is roughly $50,000 per centre and there is roughly 8,700 centres in the United States, which is our focus market.
Carolyn Herbert: For the benefit of shareholders, how long does a sale take from say the first meeting to actual implementation?
Mark Koeniguer: So it depends on the size of the centre. Some are privately owned and those typically are between three and four months. For a more complex sale within a health system or a hospital system, it can take anywhere between six and nine months.
Carolyn Herbert: What were the sales for the December quarter and what are you targeting for the year?
Mark Koeniguer: We launched this new VolparaEnterprise product in July of 2016. And since that point in time, we’ve achieved $42,000 a month in recurring revenue, half a million dollars in annual recurring revenue and $2.9 million in total contract value.
Carolyn Herbert: Finally Mark. What’s the priority for you and the sales team over the next six to 12 months?
Mark Koeniguer: We’re highly focused on the market overall and we just want to achieve overall growth. Additionally we’ll be launching Enterprise 2.0 data, which brings a lot of additional value and specifically for the technologists, within the breast-imaging centre.
Carolyn Herbert: Mark Koeniguer, thanks for the update.
Mark Koeniguer: Thank you.
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