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Okay. It looks like we've got quite a few on the line now. So we might begin. Good morning, everyone, and thank you for joining us today for Volpara's Quarterly Results Investor Webcast for the First Quarter of the FY '21 financial year.Joining us on the line today is Dr. Ralph Highnam, Volpara's CEO; and Craig Hadfield, CFO and Company Secretary.Before we hand over to Ralph, who will give a presentation this morning, please be advised that this webcast is being recorded. [Operator Instructions]I would now like to hand over to Volpara's CEO, Dr. Ralph Highnam.
Thank you, Sam, and hello, and thank you for taking the time this morning to hear about our solid Q1 FY '21, which ended 30th of June 2020. Let me also welcome you to the new world of investor calls based on Internet technology as opposed to conventional phone lines, we trust the audio quality is clearer than previous calls. And we look forward, in later calls, to using more extensive imagery and video also.Volpara is a medical technology company whose cancer screening software platform assists in the delivery of personalized patient care and whose business model is predominantly based on software as a service or SaaS. And we're on a mission to save families from cancer. We've much to cover today, including traditional 4C numbers, which again show strong cash receipts even with coronavirus strongly reemerging in the U.S. and elsewhere. Sales growth to give annual recurring revenue or ARR of just over $19 million. Negligible churn, so we retained about 27% of the U.S. market for screening, some go-forward strategic thinking.I'm joined today by Craig Hadfield, our CFO, based here in Wellington, and we'll both be available, as Sam said, at the end for Q&A.Firstly, then, let's review the 4C posted up earlier this morning onto the ASX platform. I'm delighted to say that during Q1, we had cash receipts from customers of just over $5 million, 112% up compared to Q1 last year. Despite coronavirus, this was our record quarter for cash receipts, and we believe that reflects the high-quality of our recurring revenue. Once our software is in and into the processes, it is difficult to turn off. Having said that, we're still obviously watching our customer base carefully for any signs of coronavirus-related stress. During the quarter, we had operating net cash flow of -- net cash outflow of $3.7 million ahead of internal expectations and well within our budgets. Now in addition to customer receipts, we did also receive USD 1.7 million as part of the U.S. PPP loan scheme, some of which we might or might not have to repay in due course. We'll know more during August. Our cash on end at the end of Q1 -- cash on hand at the end of Q1 was just over NZD 67 million. That includes a further $9 million coming here as part of the share purchase plan from the earlier capital raise. The aim of that capital raise was to strengthen the balance book, but also to give us ammunition for potential [ ammunition ] if the right opportunity arise, and we'll return to that later in this call.Turning now to the SaaS or recurring revenue metrics. Let me remind you all that our new -- the all-new quotes for any Volpara products are now Saas, although there are still some historic capital deals coming over the line. During Q1, despite coronavirus locking down many parts of our biggest market, the U.S., we booked a significant jump in ARR of just over $1 million to reach just over $19 million now of recurring revenue. Q1 and Q2 are traditionally our slowest quarters for new deals. And that was true again with our new deals adding $450,000 of new ARR. ARR jumped due to a number of MRS customers moving off their first year of free support onto paying contracts, some lung deals being fully recognized and the favorable movement of the U.S. NZ exchange rate. I'm also happy to report that net churn of ARR remains low, although again, we'll be watching closely to what happens with coronavirus throughout the rest of the year. We've had a number of big contracts renewed during Q1, which was extremely reassuring to see, some for a further 5 years. At the end of Q1, we have approximately 27% of U.S. women that get screened under contract to at least one Volpara product.During the quarter, we gained some, but also lost some result. MRS users on capital and service and maintenance agreements decided not to renew at least for now. This is normal for the old MRS business. Some quarters have some leave, some come back, and it tends to balance out over the year. The installed base is obviously vital to us over this period. With no trade shows, now is the time for us to focus on the pipeline we have and mining the installed base for upselling opportunities. Now opportunities reflecting the ARPU that we reported at the end of Q1, now hitting USD 1.09 per woman, but the new contract we signed in Q1 had ARPU ranging from $1.87 up to $4.4, depending on the size and structure. We continue to have some excellent deals in the pipeline for a much bigger range of products we've ever sold before, thanks to the acquisition last year of MRS, and now the packaging up with their products along with the Volpara products.In short, Q1 was solid despite coronavirus. Our sales pipeline remained strong despite coronavirus, albeit some deals are pushing depending upon the location of the site. However, we fully recognize that we need to continue to change strategy away from trade sales and site visits to digital sales, and we'll do a deeper dive on how we're doing that at the upcoming AGM on August 19. Obviously, as we move through these strategic changes and we see how coronavirus plays out, we continue to see and talk with many interesting opportunities for us as a company.Now before we open up for questions, I'm just going to cover a couple of things we've discussed previously, and I know that many of you are keen to have updates on. In December 2019, shortly after the strong results came out in project DENSE, which was the 10-year randomized controlled trial out in the Netherlands. We did sign up our first major public screening program. Our GoLive for that program was delayed due to coronavirus, but we do still expect that to come out over the next few months. Now second point was, as far as we're aware, the FDA is still very much on track to publish its final wording on breast density notification in October 2020, just a few months away now. Interestingly, over the last few weeks, both Missouri and Pennsylvania have now passed laws requiring insurers to cover additional testing if a woman is determined to be high-density and/or high-risk. We see that as a significant move that removes most out-of-pocket payments around the extra imaging and brings extra revenue to the imaging center. So more women with dense breasts should have cancers found earlier. We'll obviously update the market as we hear more around this, and we'll use the upcoming AGM on August the 19 to resume some of these matters in much greater depth.Now with that, over to you, Sam, for the Q&A.
Thank you, Ralph. So we've now come to a time of questions. Ralph, I might get you to go to the next slide. Now we do note there are a lot of participants on the line this morning. So we're going to try and get through as many questions as we can. [Operator Instructions].So our first question comes from William Macdiarmid. So I'll just get you to press the unmute on your end. Please go ahead.
Ralph, well done in the quarter. Can you just talk a little bit more about the churn, the -- specifically, what type of customers they are, maybe what product version they were using? And to what extent maybe that was in response to the transition to the SaaS model? And then, I guess, an extension to that, a few questions in that, did some of those actually transition up to a SaaS platform?
Yes. Good question, Will. I'll answer and then Craig can jump in, if he's got anything to add. Yes, most of those customers are very small customers with very little annual recurring revenue associated with them. But basically, they were sold some of the old MRS products on a capital model and they've got small service maintenance contracts. Just as per last year, we found some quarters, you get a lot of -- some of these customers don't renew. And then some -- a whole pile of them renew all at once. But of course, because it's cap on the SMA, they get to keep using the software compared to the SaaS model, where the software would terminate, obviously, as that contract ends. So yes. So that's -- again, yes, we saw this a bit last year. We had 1 quarter where a fair few didn't renew. And then the next quarter, a lot more actually renewed, it eventually went back up again. So over the year, we kind of figure some go off, some come back. And over the year, it tends to balance out. In this case, some went off via the new enterprise sales. VolparaEnterprise sales actually balanced things out over the quarter.
When does this product stop becoming useful in that sense then? If they stop signing or stop paying the maintenance contracts, clearly, they're not getting the updates for the platform itself, for the product itself. When does it stop becoming useful for them, which might act as the impetus for them to actually reengage the [indiscernible] product?
Yes. So we are -- and we've talked before, there's MRS 6, where we really focus people on getting over to SaaS, but MRS 6 and, to a certain extent, MRS 7 as well, which is the old versions compared to MRS Aspen. They both run on very old Microsoft server technology. Those -- that Microsoft product itself is now out of support. So it becomes harder and harder for us to support those customers. Now traditionally, if they come off SMAs, that they're still able to phone in and get an hourly rate. So we're trying to encourage people to move over to SaaS rather than abide by those hourly rates. But the fact is it's going to get harder and harder for us to support that software because the underlying Microsoft technology itself is now not supported.
Okay. And just finally, can you just remind us of the materiality of that breast screening program. Do you expect it to come on in a couple of months?
Yes, we've never actually given a number, Will, on that. I think in terms of one of our deals, it's probably on the upside in terms of size, but it's more the strategic importance of that deal. A lot of these screening programs talk with each other. They are all very reluctant to change. But once you get 1, then you can get 2 and they tend to follow and talk to each other. So we're very excited about getting live and getting going with that organization.
The next question is, staff costs is $5 million in Q1. Is this a stable figure now for the FY '21 quarters? Or do you expect further pickup with growth?
Yes, I'll let Craig jump on to answer that one.
Yes. Thanks, [ Ian. ] Q1 is traditionally our more expensive quarter. We pay out performance bonuses. And as you all have seen in previous announcements, we did do some restructuring in Q1 as a result of -- it's been 9 months since the acquisition of MRS, and there was -- we had seen overlap in roles. So there was some restructuring, which that cost featured in Q1. From Q1 onwards, we should actually see a bit of a slowdown in that cost for the remaining quarters. And while we play out the new strategic imperatives, which Ralph alluded to earlier and which we'll do a deeper dive on at the AGM, but I think the key message is that $5 million should be on the top end of the range for right now.
The next question is, where are you at with your acquisition strategy of other practice management vendors in the U.S., as this was partly the basis for your raising this year?
Yes. That's a good question. It wasn't -- the aim to raise earlier this year was to strengthen the balance book and put us in a great position to take advantage of any opportunities that might come along. And obviously, in terms of opportunities, there's a range of companies out there that we look at, and we are continuing to look at. There's lots of active conversations going on. But we want to get some slight strategic shift we're doing now with digital sales sailed in. And we want coronavirus to settle down just a bit more, or at least understand a little bit more about where it's going, just like some of these companies do. And as we've said all the way along, really, any opportunity we take advantage of has to be the right deal at the right price at the right time. So those conversations are still very active, and we will be coming back to that in due course, but it has to be the right deal at the right price.
So the next question is, given the developments with the FDA, could you see a step change in take-up of VolparaDensity after October? And how are you preparing for that from a sales perspective?
Yes. We've -- it's a great question. So we are now just about to enter August. At 1st of October, we've got a whole new software release coming out, which we're very, very excited about. We've been planning this for some time. That software release is based on an IoT infrastructure. And the IoT infrastructure means it is much more maintainable, much more monitorable and much easier to upgrade automatically by Volpara engineers. So yes, we do a lot of work to make the kind of a software deployment and upgrades much more scalable as part of that planning. We're also obviously looking at ways to better scale our resources in terms of sales, marketing and dealing with contracts as that October FDA date draws nearer. I should add on that as well. Obviously, the Missouri and Pennsylvania laws are also of great interest to us. Breast density measurement itself is not reimbursed, but it's always been one of our aims or one of our hopes that as insurers were asked to cover some of the additional imaging such as ultrasound or MRI, that they would start to ask for objective measurement tools in between the radiologist and that reimbursement. So there's a whole set of interesting dynamics around breast density, around breast cancer risk, that we are in an ideal position to actually take advantage of later this year.
Well, we've got a couple of questions here relating to the coronavirus pandemic. So the first one is, have you seen a reduction in U.S. clinic screening due to the spread of the coronavirus?
Yes. So it's a great question. We're kind of in a unique position. One of our aims over the last couple of years is to be seen to be industry leaders. And because of VolparaEnterprise, which is our cloud-based quality control product, all the images flow up into the cloud. So all the images -- site screening, those images are flowing up into cloud, and we can actually monitor and measure what's going on in those sites. So earlier this year, in April, May, almost all screening in the U.S. went down to 10% to 20% our levels, but I can happily confirm at the moment, that almost all screening now is back up to pre-COVID levels. I was actually on a call earlier with our customer operations team, they monitor what they call image ingestion closely. And we're well back up now to normal screen levels. I think the world has realized, and there's been plenty of press around this, that coronavirus will eventually go away, but cancer will not. And if you delay screening too long, you will get more late-stage breast cancers, and you will get a huge amount more cost, more lives are going to be lost to breast cancer, so you can delay things a little bit, but then you've got to go back in the routine of screening to really hammer down those numbers. So I think that's where we are today.
And is there any potential application of Volpara's products to COVID given the implications on people's lungs?
Yes. So we -- traditionally our lung reporting software, which we acquired as part of MRS last year, has been used for lung cancer screening, but it has been well-known to us for some time that most lung cancer nodules are actually detected outside of lung cancer screening. So for example, someone will go in for a CT to look for pneumonia and they have lung cancer detected. We call this kind of incidental lung cancer findings. Now we're doing a lot of work, too, on the lung cancer product to get it much more suitable for finding, detecting and automatically start to populate those incidental lung cancer findings when people are screening from pneumonia because of COVID, but we're also adding in a whole set of templates for people to actually use the software as well to report on COVID. So actually moving away from just being purely lung cancer to being more lung disease management. And that software will be released later this year.
So the next question here is, when screening coverage of U.S. women reaches close to 100%, where will additional growth come from?
Yes. So I mean, at the moment -- let's just run through some of the U.S. statistics, there's about 40 million women a year that get screened each year in the U.S. We -- that itself is only about 65% or so of the total population that qualifies for screening. So the more we can make screening more comfortable, the more we can make it more safer, the more we can make it more effective, we actually believe we could help raise that number. And that will be a win-win for screening centers, for us and for the women because they'll have more cancers detected earlier. That's kind of one angle. But the other angle, obviously, is, at the moment, we cover 27%. We have a huge amount more -- 27% using just one product. We have a huge amount of growth to go just upselling that install base with some outstanding deals out there now and selling in today's install base, not just one product, but the whole product suite. So we have a whole set of growth to go there. We have a whole set of growth, obviously, to go beyond that 27% up to 100% of the U.S. screening population as it is today. And then we've got a huge step beyond that to get more women in for screening. So there's a whole set of areas there to move into, but then even beyond that, again, we've talked about this a bit before, there's been some great papers out over the last 6, 9 months on how people can use our measurements in breast surgery, right the way through obviously to the lung cancer work, again, which we're learning more and more about. And we really do believe some of our technologies such as the AI that we do for the quality control could be pretty easily applied to lung. But we really are a company that wants to focus, and that focus is on that breast radiology market at the moment.
[Operator Instructions] So the next question here is what are the likely outcomes if the FDA publishes a note on breast density?
The draft FDA announcement came out mid last year. So if that is reflective of what they're going to say, they're going to come out and say, as part of your accreditation as a breast imaging center to do screening, we have to require you to report breast density to all women. At least the draft notification last year said that, that will be reported in terms of the traditional way that they score breast density today, which is extremely dense down to extremely fatty. The FDA will mandate certain words to go into letters, which they're working on. I mean, one of the aims of the FDA really is to take the state laws and to really help standardize it, so women across the U.S. and just the general information flow and messaging is standardized across the U.S. So as it stands today, it will probably be a full-grade categorization and reporting. The FDA will say to all these sites when they do their inspections each year, they will look to make sure that those -- that density score is being reported in their letters, and that they will make sure that the density score is being done properly as well. So they'll probably do some form of sampling of that. And the FDA will also -- and again, this is part of the unknown, they'll also give some sites some leeway. So they could announce in October and say, "1st of January 2021. Everyone has to do this, but they won't penalize them for 6 months," for example, or they could say, "from 1st of January, everyone has to do this, and we will check this on inspections and we'll warn you." So there is some unknown around exactly what the final wording is, exactly what the timing is, but certainly, dense breast info and some of the other women's advocacy movements are still strongly suggesting that it's going to be October this year when the final wording and timing comes out.
The next question is, can you please restate the new laws in Missouri and Pennsylvania? And what will these new law -- or these law changes mean for patients and of the local mammography providers?
Yes. So the state laws. So just stepping back, 2006, 2007, Nancy Cappello in Connecticut had her -- had a breast X-ray, got a letter saying she was all clear and then had a shower and found a lump in the breast. Nancy then went on a crusade -- she went to her radiologist to say, "why have I got advanced breast cancer" and the radiologist said, "that's because, Nancy, you've got dense breasts, we couldn't see the cancer in your breast X-ray." Nancy was aghast that the radiologist knew that information but did not tell her. So she forced through the state laws across the U.S., where the state law basically says every time you do a screening X-ray, you will tell the woman her breast density. Now unfortunately as those screening laws progressed, they've become pretty nonstandard. So one would say, you have to say to the women breast density is a risk factor, and there might be other options for her, through to another would say, you have breast density -- high breast density, you should go and seek ultrasound. So there's a real mix of wording. And again, the FDA seeks to standardize that. But what those laws didn't do was they -- for example, the ones which specified ultrasound for an additional screen, they did not say that the insurers had to cover ultrasound as well. The recent laws, state laws that have gone through Pennsylvania and Missouri have both stated that if you have dense breasts, the insurers then have to pay for you to have ultrasound or MRI done if you're at high risk. So that there is obviously putting a new dynamic into the game, whereby instead of women being -- receiving a letter saying you have dense breasts, pay $250, we can do an ultrasound, do it on you and we might detect early-stage breast cancer. Now those women will be told, you have dense breasts, the insurer is duty bound to cover you for ultrasound. Please come back in, so we can just check that there's no breast cancer in all that dense breast tissue that you've got. So we expect to see increase in cancer detection because more women will now go on and have that potentially life-saving extra imaging done. That will also obviously put more cost on to the insurers. It'll put more revenue into the hand of the imaging centers so that those imaging centers will be more positive around actually doing the extra imaging, which some women so desperately need.The dynamic -- this whole dynamic there, of course, which is interesting, but one of the things we saw as a company when we started was it's very hard in the U.S. climate today to get reimbursement for anything new. So you have to work to what's out there at that moment. And one of our hopes all the way along has been these insurers would end up feeling a lot of pain because of all these women going on for ultrasound because the radiologist does a visual assessment, gets it wrong, or reads on the high side and does a lot of ultrasound. We actually see a dynamic playing out, which could lead to the insurers feeling a lot of pain in these areas and starting to require objective breast density measurements to guide which women go on for this extra imaging or risk assessment. So there's we see these laws as being very positive. And as they roll -- hopefully, they will continue to roll out across the U.S. It will lead to a lot more imaging. It will lead to a lot more cancers being detected early, and it could well lead to much more demand for objective breast density measurement and objective breast cancer risk score.
The next question is, how is access today for your sales force to new client opportunities in the U.S.?
Yes, that's a good question. As I said in the talk, obviously, a lot of trade shows have now disappeared, but we are ramping up, and we'll talk more about this at the AGM around digital marketing, using digital lead generation technology. And obviously, we'll have the benefit of a very experienced sales force with some excellent networks. So new leads are coming from those networks. New leads are also coming from that install base as we seek to upsell. And we're using these new digital techniques as well to generate new leads. So for example, we've run a whole series of very successful webinars, where lots of people come on, and we've a lot of interest afterwards from customers seeking to know more about our solutions to some of their clinical needs.
The next question is, are you seeing any adverse effects from COVID that will impact your results?
Well, certainly, as we've talked around in Q1, I mean, you get some deals -- you've got some outstanding deals out there, which have been delayed due to COVID. And for example, the screening site that was about to go live has also -- obviously, that has been delayed due to COVID. So we're getting a sense that we are -- I know we talked around this on the early talks as well. We've got a very resilient company. We're in a resilient business because you cannot delay breast cancer screening. Plus, we have a very resilient business model, which ends with excellent recurring revenue, which is a great place to be. But yes, there's a certain amount of uncertainty around those new sales. So I think we're pretty comfortable with the recurring revenue. And again, over the last quarter, we've had some outstanding deals renew, not just on an annual basis, but some coming back for another 5 years, which is great to see in that Q1. But it's the uncertainty around those new sales and getting them across the line. We are still very positive as a company. We've got a great strong pipeline, but coronavirus seems to be reemerging, although today and yesterday there seems to be some sense now that the cases are starting to go down again in the U.S. I think because people started to social distance. So yes, there's some unpredictability around that, which is why we're not giving the forecast, but the recurring revenue looks very strong and the pipeline is looking good.
The next question is, what are the growth strategies for Volpara in countries other than the U.S.?
Yes. That's a great question. And again, outside the U.S. -- the U.S. for us has been the early adopters because although they have these federal laws come across, you do have a lot of individual ability to change what you do. Outside the U.S., it's much more population-based screening programs and those population-based screening programs need these big randomized controlled trials or they need other screening organizations to adopt and then they'll follow. So obviously, last year, in December, we had the 10-year randomized control trial come out in the Netherlands, Project DENSE, which has generated a huge amount of interest around the world. And that certainly, we believe, led to that first state in buying Volpara and going live. So we're doing huge amount of work in Australia, New Zealand and continuing big trials up in Europe. We have now this U.K. trial I think in the third year. We're into about the fourth year of the big Norwegian trial.So it's huge amount of movement, but they take a long time, and that's why we're so keen to get this one live. The technology is already in place now at this big public center. They seem to be in a position to turn it on. So we're getting towards that point. And if that goes live and we have no reason why it shouldn't be a big success, we fully expect some of those other programs to follow that. And then not just follow that for the kind of enterprise quality control program, but also for the density solution as well and some of our other products we're bringing down the pipeline. So yes, a huge amount of activity then outside the U.S. as well.
And there's another question on sales. What is the biggest hurdle or impediment to taking on Volpara products when your sales staff speaking with breast imaging clinics? Is it a reluctance or disruption from removing existing infrastructure? Is it price?
Yes, that's a good question. And the way we've answered that, and I think it's still very much an answer now is the -- I think it's fair to say everyone sees VolparaEnterprise, for example, and they are completely enamored with it. But they all kind of want it, but then we go into the budget process for each site. And it comes down to having a strong enough champion in that budget process to argue why they should buy Enterprise, for example, over the other products, we are -- remember there, what we're replacing is manual processes. So we go to some sites today in the U.S., you'll be amazed how many huge spreadsheets people have, and they're doing manual quality control. So VolparaEnterprise, for example, come in and instead of spending weeks, if not longer, preparing for an FDA audit, you can get ready within a couple of hours, basically, and we've got some great studies around that.What we have lacked though in the past is those case studies coming through, and instead of just talking around return on investment, actually having the hard evidence. We now have a huge -- a good number of very strong sites, which are coming through, and we're publishing them more and more now, case studies showing not only how we're benefiting patients, but how we're actually very positively affecting their ROI. And most of the ROI improvement is just in terms of share cost savings being done. Even yesterday or the day before, there was a site in the U.S. where they have 10 X-ray machines. Usually, they spend 5 or 6 hours collecting cases on each X-ray machine ready for their audit with the FDA. And now they're down to basically minutes per machine instead of hours per machine. So again, massive cost savings, it's great to see the hard evidence coming through. We always knew it was there from the theoretical work we've done, but it's great now to see all the hard evidence, all of that coming through.
So we're coming closer to our finish time. We've still got time for a few more questions. [Operator Instructions] The next question is, how does your lung screening technology differ from your competitors such as 4DMedical?
Yes. The lung screening technology we have is all about patient tracking. So -- and this is the same for the breast tracking work that we have as well. So a woman or a person walks in the door, qualifies for the lung cancer screening. Soon as they turn up to hospital, they register with the Aspen Lung product and say, Mr. Smith is here for lung cancer screening. Mr. Smith then enters various information into that screening system, such as age, how long they've smoked for and so on. The CT is then done. Our system gets told the CT is done or other form of imaging is done. And then the radiologist reads those images and uses the Aspen Lung structured reporting system to say this patient has lung nodules in 5 places. This is highly indicative of serious lung cancer. We need to do a biopsy on this patient immediately. So it's all really about tracking that all the way through and then those pathology comes back from the biopsies. And again, that goes into our lung tracking system. 4D is a company we're certainly aware of. They have software for fluoroscopy, and they appear to be, again, looking to -- rather lung CT, they're looking to use fluoroscopy to do bare lung cancer diagnosis or a lung disease management and so on. As that progresses, as we talked about earlier, we're looking to progress that lung cancer screening software we have today into a lung disease management system. So I have no doubt if 4D is successful, which we sincerely hope it will be, given some of the technology they have. If it's successful, hopefully, we'll be doing structured reporting not only on CT, but on fluoroscopy in due course. So it's very much complementary technology.
We've just got time for one more question, and that is, in future, is a stable revenue expected? And how much dividend is expected to be paid?
It's a good question. Obviously, at the moment, we are seeing -- continue to see good growth in annual recurring revenue. We, as a company are very much focused on being strong and independent and helping as many women avoid late-stage breast cancer as we possibly can. That then is obviously driving us towards growth. But obviously, as we've said earlier this year, we are -- and Craig alluded to earlier today as well, we are looking very actively at keeping costs under control and moving the company towards that cash flow breakeven. We're not forecasting when that's going to happen, especially not given some of the uncertainty around coronavirus at the moment. But obviously, that is on our radar, and that is the direction that we're looking in. But equally, obviously, we want to keep very strong growth rates as well in parallel to that.
So we just had another question come in, which we'll be able to squeeze in, and that is conscious COVID has impacted growth in Q1, did it also constrain your ability to grow market share?
Yes. So it's kind of an interesting topic for us. I was -- I talked to Craig about this earlier. Fact is, for us, like, Q1, Q2 are usually our weakest quarters. In Q3, Q4 when things really pick up this towards year-end is when all the budgets and stuff gets sold. So that's usually what we're picking up. So in some ways, we're fortunate that COVID is really hitting during our weakest quarters. But certainly, and even in Q1, right, we've seen ARR growth, not that percentage growth, but we certainly are still forecasting internally that we're going to see good growth this year. And as we play -- as we go forward and play out the year, that will obviously start to be reflected in the numbers. Again, we have a strong pipeline. We had a very strong pipeline going into the whole COVID situation. We have some excellent salespeople out there. And there's a whole pile of really sizable interesting deals with much higher ARPU than we've seen before on the verge of closing. So we're actually looking positively ahead to the rest of the year.
And that comes to the end of our question time. If you did ask a question that wasn't answered, we have your details, and we'll make sure we follow-up with you.I'd now like to hand back to Dr. Ralph Highnam for closing remarks.
Cool. Thanks, Sam. Thanks again for your time today. As you can tell, we have a remarkably resilient business, helping millions of women each year. And there are some milestones like the FDA coming out with breast cancer legislation on the horizon. Thank you for your continued interest in our mission to save families from cancer, and we look forward and need to kind of urge you to come along to the AGM. We do tend to use the AGM to give people deeper dives on a range of subjects that we don't cover on these calls, and we fully expect to do so again at the AGM, which is coming up in a couple of weeks' time. It will be Zoom. So you should see the details go out on e-mail and up onto the ASX as well. So yes, with that, thank you.