Australia’s rapidly developing medical Software as a Service (SaaS) industry is attracting a keen eye from investors globally. A fascinating confluence of factors – a robust healthcare system, a surge in digitalization, and supportive government regulations – has created a fertile environment for this sector. Among the multitude of innovators, three small-cap, publicly-traded companies. Advanced Health Intelligence (NASDAQ:AHI), ResApp Health Ltd (ASX:RAP), and MedAdvisor Limited (ASX:MDR), are leading the way, pioneering novel solutions that promise to shape the landscape of healthcare.
Advanced Health Intelligence has attracted considerable attention for its innovative use of machine learning algorithms that enable users to track body dimensions and overall health, integrating seamlessly into existing healthcare platforms. With a market capitalization of AUD 77 million as of July 2023, the company has shown significant growth with a 15% increase in revenue quarter-on-quarter. The rising focus on health and wellness, amplified by the COVID-19 pandemic, has ignited interest in its offerings.
Meanwhile, ResApp Health, valued at AUD 61 million, has developed an AI-driven mobile software that can diagnose and manage respiratory conditions using a patient’s cough sounds. The company witnessed an impressive 20% revenue growth in the last fiscal year and is in line with the growing demand for remote diagnostic solutions. This innovative technology could revolutionize the way respiratory conditions are diagnosed, lowering the burden on traditional healthcare systems.
MedAdvisor, an automated medication management platform, connects patients to local pharmacies and facilitates remote prescription management. With a market cap of AUD 52 million, MedAdvisor has managed to tap into the increased demand for telehealth services during the pandemic, recording a notable 18% growth in revenue year-over-year. Their platform offers the much-needed convenience and safety for patients, while ensuring medication adherence.
These companies’ performance paints a compelling picture of the growing opportunities within Australia’s medical SaaS industry. Recent statistics reveal that the healthcare SaaS market in Australia is predicted to grow at a CAGR of 12.7% from 2021 to 2026. With the rise in chronic diseases and an ageing population, this growth trajectory shows no sign of tapering off.
Despite the inevitable risks associated with investing in small-cap companies, the investor sentiment around these firms is predominantly optimistic. The disruption brought about by these firms, coupled with strong growth trends and robust revenue increases, has led to a surge in their share prices over the last year. As healthcare continues its digital transformation, these innovators present enticing prospects for those willing to bet on the continued growth of the medical SaaS industry down under.