The FY21 result held few surprises given many of the key metrics have been detailed in recent trading updates. The key highlight was the step up in ARPU particularly in the last quarter where the average contracted ARPU was US$2.50. FY22 revenue guidance provided of NZ$25.5m (at the mid-point) is conservative in our view. The revenue guidance is 30%+ higher than FY21 and sets a clear trajectory for growth aided by the recent CRA acquisition (breast risk assessment company), recent contract wins and a rising ARPU. We have rebased our costs to reflect higher product development spend in line with a continuing focus on risk and genetics. The changes to forecasts result in our DCF valuation reducing to A$1.87 (from A$1.94). Add.
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