Pro Medicus Limited Q2 Results
Leading health imaging company Pro Medicus Limited (ASX: PME) reported a strong financial performance for the first half of the 2024 fiscal year, posting a net profit of $51.7 million, a 42.7% increase compared to the previous year. The company’s revenue reached $97.2 million, reflecting a 31.1% year-on-year growth. The majority of this growth was driven by the expansion of Pro Medicus’ business in North America, where revenue soared to $86.4 million, an increase of 34.6%.
Pro Medicus also reported a significant increase in cash and financial assets, which rose by 17.7% to $182.3 million by December 2024. The company remains in a robust financial position, debt-free, and has declared a fully franked interim dividend of 25 cents per share.
The company’s success was also highlighted by a series of important contract wins during the period. Pro Medicus secured new contracts with major healthcare providers including Trinity Health, Lurie Children’s Hospital, and Duly Health and Care. These agreements are valued at a combined minimum of $365 million, spanning over 7-10 years. Additionally, Pro Medicus renewed existing contracts with Mercy Health in the U.S., valued at $98 million for eight years, and a large Australian radiology practice, worth $32 million over five years.
Further strengthening its existing relationships, Pro Medicus also added new modules to contracts with Duke Health and NYU Langone. Duke Health added a $15 million archive module for a five-year term, while NYU Langone added a $24 million archive module for five years as well.
CEO Dr. Sam Hupert expressed satisfaction with the company’s performance, noting that it marked a record result for Pro Medicus in both revenue and net profit. He also highlighted the successful implementation of key projects, including a record-fast 11-month implementation for Baylor Scott & White (BS&W), which began contributing full revenue during the half-year period. This project will continue to bolster Pro Medicus’ revenue base as it generates six months of revenue in the second half of the year.
Dr. Hupert emphasized that the contracts won during the period, including the significant deal with Trinity Health, will contribute to revenue starting in FY26 as the company progresses with implementations. These wins demonstrate the scalability and long-term potential of the company’s products.
Pro Medicus’ margins also showed impressive improvement, rising to 72% compared to 66% during the same period last year. This boost was primarily driven by an increase in transaction revenue, exceeding the company’s initial expectations.
Looking ahead, Dr. Hupert expressed optimism about the company’s future growth prospects, citing a strong pipeline of opportunities, particularly in the United States. Pro Medicus’ performance at the 2024 RSNA (Radiological Society of North America) conference, its largest to date, also fueled confidence in its future prospects. The company continues to see growth across all client segments and remains focused on catering to a wide range of market needs.
The diverse range of contracts secured in the first half of the fiscal year also illustrates Pro Medicus’ flexibility and adaptability. These include a top-tier paediatric hospital, Lurie Children’s, a regional private network in Duly Health and Care, and one of the largest integrated delivery networks (IDNs) in the U.S., Trinity Health. The company’s modular approach to its products, including its full suite of Visage offerings—Viewer, Workflow, and Archive—also continues to appeal to clients, with more and more existing customers opting for the full product stack.
Dr. Hupert concluded that these trends, along with the continued success in securing new contracts, reflect the growing confidence in Pro Medicus’ technology and products. The company’s ability to cater to a wide variety of clients, from large hospital networks to smaller regional players, positions it well for sustained growth in the years ahead.
As Pro Medicus continues to expand its presence and win significant contracts globally, it remains poised for continued success in the health imaging sector, demonstrating its leadership in both technological innovation and market growth.
