Good morning, everyone, and thank you for joining us today for the Volpara Health half year results webinar. On the call and presenting today is CEO and Managing Director, Teri Thomas, and Chief Financial Officer, Craig Hadfield. Before we start, I'd just like to remind you that if you do have a question, you can ask them at any time, although they will be addressed at the end of the call, and you can do so by using the Q&A facility at the bottom of your screen. The call will be recorded and will be made available on the Volpara website shortly after its completion. I'll now hand over to Teri to begin. Hello. Thank you, Hannah, and thank you everyone who's attending for your time this morning to hear about our excellent results for the half year FY23, which ended on the 30th of September. I first want to also thank our investors who've increased their investment with us in the last six months. Your support helps us make a real impact on the lives of millions of people. For those of you that don't know us, Volpara is a health technology company whose breast care software supports the best quality mammograms, informing patients and providers about breast density and delivery of personalized breast care. We're a software as a service vendor. We're on a mission to save families from cancer. Today, we're gonna cover the following: the half year results, which show a 37% increase in revenues with greater improvement in EBITDA and the business outlook and key events coming up. I'm joined today by Craig Hadfield, our Chief Financial Officer, based in Wellington. We are all available for questions at the end of the main report, which you can ask either by the Q&A function of this call or by raising your hand to speak verbally. With that, let's get started. Now, before we get to the numbers. Which will be the focus of this half year call, by the way. I did wanna talk for a moment about the character of our company. As noted on our introductory slide, we do have a strong purpose, which is saving families from cancer, and this purpose is what drew me to the company to begin with. It's very important to me, to my Volpara colleagues, and it fuels the passion for what we do. We're lucky to attract some very dedicated staff because of our purpose, but that's not always enough. We are an ethical company, and our purpose is one part of that. We are proud to have validation through achieving B Corp certification, that we pay attention to a broader set of principles in our daily business that we think will provide a positive return on staff satisfaction, impact investor alignment, customer pride, and simply doing what's right. We recognize that our staff are our true secret sauce, we're committed to investing in them, growing their skills, and ensuring that Volpara is a company for which they're proud to work. As a company that does a lot for women's health, we've now achieved a 50/50 gender split on our board, we have very strong gender diversity across our staff, quite unusual in the tech industry. We stand firm and strong on our two feet, grounded in our purpose and profit, our company has a lot to be proud of in our staff and how we operate. Let's shift to the impact and the numbers. You wanna take it for a minute, Craig? Yep. Cool. Thanks, Teri. Good morning. Thank you, everyone for joining. I'm just gonna summarize some of our results from the quarterly 4C for the first half of the year before I recap on some of the financial numbers from the half year. Our Contracted Annual Recurring Revenue hit $24.1 million. That was up from $20.4 million last year or 18%. That's a record increase over a trailing 12-month period. CAR is trailed by ARR, which now sits at $19.1 million, and that's up 27% or $4.1 million year-on-year. Our market share is now sitting at $40.5 million. That's up from about 34% at the end of March, about a 6%, 6.5% increase over the last period. Looking at the balance sheet, as of 30 September, we had a little over NZD 11.6 million of cash on hand, as well as access to a NZD 10 million facility through a revolving credit facility in place with Kiwibank, our main commercial bank. Net cash outflows in the second half of the year are expected to be up significantly and in line with the cost savings we've noticed previously. We're seeing those play out now. As stated before, we firmly believe we have sufficient cash on hand to reach cash flow break even within our guidance period. If you'll go to the next slide. Thank you. Let's look at some of the traditional accounting metrics. Accounting revenue, as Teri mentioned, was NZD 16.9 million or up 37% over the same period last year. Constant currency, it was 22%, still solid growth. As in the prior year, 96% of revenue was recurring in nature, with only 4% being capital. This focus on recurring revenue streams has stood us in good stead, both from a revenue and a cash flow perspective, with consistently increasing metrics on both fronts quarter on quarter, year on year. We're not subjected to a lot of the wild swings that some of our competitors have, where they are mainly focused on capital sales. You know, this also allows us to plan ahead, and we firmly believe that this will help us reach profitability within the next 12 to 18 months as we've guided towards. Gross margins have crept up a little. They're now just under 92% as we continue to gain efficiencies on our cloud usage. This means our gross profit increased 38% from NZD 11.3 million in the prior period to NZD 15.5 million now. Let's go to the next slide, please, Henry. There we go. Operating expenses increased 3.4% compared to the prior period. When constant currency actually decreased 2.5%. Where our sales and marketing and product R&D costs increased, largely as a result of increased headcount, which has obviously changed towards the back end of the half year with the restructure. D&A costs decreased equally to really leave our costs materially flat year-on-year. Looking ahead, we expect our expenses to decrease by about NZD 3 million in constant currency over the second half of the year, and then somewhere in the region of NZD 7 million next year for the full year. If we look at normalized non-GAAP EBITDA, excluding one-off and non-cash items, that's improved from a loss of NZD 6.4 million last year to NZD 4.2 million this year, or a 33% reduction. Accounting net loss after tax has also improved 38% from NZD 8.5 to NZD 5.3. Both of these are largely due to increasing revenues, you know, more than offsetting the small increase in OpEx costs. We'll see that improving even more in the back end of this financial year and going forward. Lastly, just wanna touch on our guidance. We guided the market to NZD 31.5 million-NZD 33 million for the financial year 2023. We're now upgrading that to NZD 33.5 million-NZD 34.5 million, somewhere in that range. That reflects both solid organic growth on a constant currency basis, as well as, you know, the strong US dollar, which is starting to unwind but is still strong. With that, I will hand back to you, Teri. All right. Thank you, Craig. Busy and exciting time for Volpara. I'm in Wellington with Craig, except I'm not. I'm in Auckland, getting ready to get on a plane to the United States in 2 hours today, heading to the world's largest radiology-focused conference, the Radiological Society of North America's annual conference, otherwise known as RSNA. This conference has actually met for over 100 years. I believe it's the 108th. It draws attendees from over 100 countries. While it's based in the U.S., it is not a U.S.-only conference. The last 2 years having been hampered by COVID, all indications are that this year will be well-attended and should be an excellent conference for Volpara. Our schedules certainly are jam-packed, including numerous different elephant-type prospective customers, some current customers, partners, and collaborators. We expect a lot of solid leads from this show. It's our biggest show of the year. It's also where we get to connect with a lot of leaders in the scientific community, see their presentations, network with them. Our former CEO and founder, Ralph Highnam, is going to be taking me around and showing me some of the movers and shakers in the industry, so I'm quite excited about that. There are over 400 educational presentations and nearly 700 exhibitors. Our team is absolutely geared up, ready to go with a focus again on our key markets, our key most profitable products, and sharing solid ROI and successes from our customers with our prospective customers. Speaking of successes, it's been a great half year. Also, I'm quite proud of our customer success team. We've gotten some really nice unsolicited kudos about the value of our software and the positive impact that it's made on our customers. In fact, just last week, Canada Diagnostic Centres told us that our analytics products reduced the time it takes to complete the Alberta Breast Cancer Screening Program audit from more than two weeks down to only two or three hours. We love these stories, and we're very proud to share best practices through our Hive customer community and at RSNA and through our professional services offering. Another thing we're quite excited about is the looming FDA mandate on breast density reporting, which is expected to happen in the next few months. We've been looking forward to this for a couple years. We expect this to be a turning point for the U.S. We also know the rest of the world is watching. To have this rule enacted at the federal level means that anyone who gets a mammogram must be given information about their personal breast density, what that means in terms of their risk, and if applicable, additional recommended care. We do have the very best density software in the industry. We are by far the most clinically validated and precise volumetric measurement out there. Our product is superior to the handful of other options that provide density information. Of course, this endorsement by the FDA very publicly validates the importance of breast density and the basis for founding our company. We expect that other countries will follow the FDA's lead with the EUSOBI recommendations in Europe last year. We expect to see more interest in Europe, and we'll be watching this carefully at RSNA as we plan for expansion once we've hit profitability. We'd love to see density become much more prominent in Australia, also New Zealand, and potentially opening up other markets for us elsewhere in the world. It's not just about breast density. A topic of growing importance in the U.S. and elsewhere is risk of cancer, breast and others. Volpara's volumetric density is the only breast density measurement validated for use in the most widely accepted risk assessment model, the Tyrer-Cuzick 8 risk evaluation tool. More importantly than that, we are excited about this because we're committed to the education, informing women, providing personalized care and precise risk assessments that take density into account, as the very best way to save families from cancer. The best news about this ruling is that it's the best thing for women. It will save lives, and that's important to us. That's everything I prepared to say, but I'm also gonna say, because I believe that life's too short to not have fun, that we're actually gonna debut a company mascot at RSNA, and it's goofy and it's funny, and we love it. I'm just gonna dangle that there as a teaser and open up for questions. Thanks, Teri. We do have a few questions that have come in. All right. I will read them out to you. Number one, what was the main driver of revenue growth? Our revenue growth has been a mix of new customers and existing customers adding on fairly equal split across our Volpara Analytics product, our Patient Hub product and our Risk Pathways. There's not any one that's a main driver over the others. It's actually kind of nicely, roughly a third, a third, a third. Okay. Thank you. Do you maintain your timeline to profitability even with a shrinking cash balance? I feel good about our timeline to profitability. feel good about how we're doing in terms of our cash and our collections, and so we stay firm with our guidance on that. All right. Thanks. I think this may be for you, Craig. There is talk of potential impending recession in Australia, New Zealand and the U.S. How may this impact your revenue on a constant currency basis, and have you factored this into your forecasts? Go ahead. Cool. Thanks, Hannah. Constant currency for the half year, we grew 22%. We expect to see the business growing at a similar rate over the second half of the year and out into FY24. I think the evidence there is backed up by the difference between CAR and ARR. We have a lot of business that's signed that we are busy installing at the moment. Some of that is, and we've mentioned many times before, dependent on Epic and them going live, particularly with our Risk Pathways product. Also, obviously, staff shortages are still, you know, real in the U.S., so we do work with our clients on that. We're happy with the growth rate, somewhere in the region of 20% on a constant currency basis. In terms of how that impacts on our cash flow, you know, as I mentioned, I think on the last 4C, we have hedged our cash flows from the US to New Zealand, where we've, you know, we're currently hedged at about NZD 0.63 to the US dollar, New Zealand dollar. You know, obviously the US dollar's moved quite significantly in the last month, you know, where the New Zealand dollar's gotten stronger, so our hedges are almost neutral. I think importantly also about those hedges is they are not options. They don't cost anything to enter into. We have just hedged our cash flows forward. I think we've hedged out into FY26, what that does is that it gives us a lot of certainty as a business as to our cash flows. Remember, a lot of our cost sits in New Zealand. Giving us that certainty around cash flow from the U.S. to New Zealand allows us to plan ahead, and that's really what the hedging strategy is about. I'm confident that we have a good constant currency growth rate for revenue going forward, at least for the next 12 to 18 months. Our cash flows and forecasts still allow us to meet our targets that we've given the market in terms of cash flow profitability in FY24. The other good thing with this is that as a SaaS company, a lot of our re-revenue is fairly predictable and recurring. In a recession, healthcare tends to actually do all right. People actually get sick, and cancer continues to happen. You know, we wanna end cancer, but the reality is that we are in an industry that isn't subject to the same kind of fluctuations you might see in other industries in a recession. All right. Thanks. There's one more that relates to the currency. Is the guidance upgrade driven only by currency movement, or is there a genuine upgrade in underlying revenue? Yeah. We thought that we would have revenue growth somewhere in the region of 17%-20% organic, constant currency. You know, the first half of the year, we realized 22%, a little over 22% organic, constant currency growth. It's a bit of a mixture of both, to be honest, but to a large degree, driven by US dollar strength. Hence why the upgrade results in a slightly lower, full year percentage increase in revenue, because we are seeing the US dollar unwind from the very strong position, and we suspect it's gonna continue to. A few more. There is one actually very topical. Given the Russian hackers exposing medical information in Australia, how do you know your software is secure? Good question. Certainly something top of mind and very important to us as a company. We consider cybersecurity threats in every bit of the design of our software, and we've got security controls, including multi-factor authentication, data encryption, security monitoring, to do everything we can to reduce our vulnerability to these threats. We engage reputable cybersecurity experts to do penetration testing across our product suite multiple times each year. We are independently auditable against ISO 27001 and SOC 2 information security standards, which check that our policies and security controls are appropriate and functioning effectively. We also protect our endpoints, including laptops, PC servers, employee accounts, IT assets, with a pretty advanced and integrated suite of security tools based on the Microsoft Defender suite. We also integrate some modern security tools into our development life cycle to ensure that our software is free from vulnerabilities, including Tenable.io. The biggest thing is we train our staff, and we regularly test them to ensure that they know how to identify and protect ourselves from cybersecurity threats, including doing fake phishing attacks to see, can you make it really realistic and still spot what might be the fake message and enforce training for our staff to ensure that we are actually acting as responsibly as we can, since that tends to be the biggest vulnerability for a company like us. We're in good shape, but it's always really good reminders to make sure that we have absolute top practices. As a CEO, I scan for what are things that could be really significantly negatively impactful for our company. Security is one that's at the top of the list that we re-review regularly. All right. Thank you. I think we've got three more here. One is, Teri, could you talk more about the uptake of the genetics application? Yep. We don't have an application specifically, but what we do is we gather information in our Risk Pathways application, and we package that information up, whether it's gathered directly from a patient in a survey or the electronic health record, and then we can communicate that information via either a printout or an electronic data interchange or interface to a genetics company to be able to support why are they getting that genetic test and their ability to get reimbursed for that genetic test. We've continued to progress in terms of moving from a paper-generated test request form to electronic forms with the genetics companies and, you know, continue having good relationships with those genetic companies. Our customer success team and our new professional services is pulling together more of the processes and people to support leveraging that technology. We've got a handful of customers that are doing this and others that are engaging with us and learning how to do it. It continues to progress. It's growing. It's not something that can be turned on overnight because it does involve the roles of either genetic counselors or other healthcare providers outside of a radiology workflow. However, we think it's the right thing for women, and there certainly is interest in the industry, and it's something we'll be talking about more at RSNA as well. Okay. one for you, Craig. The guidance is implying only very modest revenue growth in 2H 2023. Why is there not stronger growth, as this does not align with your growth outlook and improving profitability? Okay. I probably disagree with that, in that, you know, we delivered 22% constant currency growth in the first half of the year. The guidance implies similar in the second half of the year, around about the 20%-22% mark. It's very different. The US dollar is moving all over the show. You know, obviously we don't wanna overpromise and underdeliver, but we are still implying constant currency growth of 20%+. I think on the profitability point, you know, our costs are decreasing, despite the strong US dollar and, you know, taking into account the constant currency revenue growth, plus the strong US dollar and the re-reduction in costs, we're moving very quickly towards profitability, in line with our guidance. I think our strategy has been clear. We wanted to protect our top line growth while we looked internally on some cost-cutting and some operational changes. We are continuing on that strategy pretty much exactly as laid out. All right. We've got two more, and then one from the floor. What% decrease in costs can we expect to see in the full year results and next year's half year results? Go ahead, Craig. Cool, thanks. On a cost basis, you know, we mentioned earlier about NZD 3 million of costs will be taken out of the business in the second half of the year compared to the first half. In FY24, we're looking more at around the NZD 7 million mark with obviously continuing growth in the top line as well, hence heading towards that profitability that we've been mentioning. Okay. I think we must have answered the one from the floor because it's gone now. Final question. Regarding the FDA mandate, are we considering the scale-up requirements that would need to be met if the mandate goes through and how we would meet them? Can you provide some more detail on this? Okay. The deployment of our software for reporting density, which is one of the areas that's our Scorecard product, which is often sold with our Analytics product, is not a super heavy lift to install. In terms of the size of our team and what we anticipate that we would need from to support growth in some of the states that don't already have reporting requirements, you know, we will certainly evaluate, do we need to add people as we go, but we're cautious about not adding people before we know that we need them. Scale-up time is still a question mark, while the requirement of notifying people of those requirements is expected in the next couple of months, how long the healthcare organizations have to comply with that is still uncertain. We don't anticipate that this is something that would be like a flipping a switch overnight, and all of a sudden we've got a whole bunch of organizations that need to do something immediately. We expect that we'll have time to be able to do what we need to do to support any kind of increase in sales related to those requirements. I'll remind, for those that aren't aware of this, 38 out of 50 states do have some rule in place right now about reporting density. This new FDA level makes it consistent across the United States. We already have some practice in how to be able to support this state by state. All right. Thank you very much, Teri. There are no more questions. Before I hand back to you for closing remarks, I'd just like to thank everybody for joining us today. If you do happen to think of a question, please feel free to email me or the company directly. You can find our contact details at the back of the presentation or on any of the other announcements. Teri, before we wrap up, do you have any last words? Sure. We're really looking forward to the second half. It's going to be a good year, and I'm looking forward to RSNA and for us as a company, you know, our strategy driving to profitability, I see that within reach. One part of that strategy was a portion of our company also thinking about where are we going in the long- term. As a company, we're going to be doing some fun engagements post-RSNA, looking at the status of the industry and what might be the next big leaps after profitability. This next year is going to be an exciting time and look forward to seeing some new directions for our company going forward. Thank you very much, and thank you everyone for joining. Thank you.