Profound Medical Corp (PROF) Q2 2024 Earnings Call Highlights: Strong Revenue Growth Amidst ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $2.23 million for Q2 2024, a 39% increase from $1.6 million in Q2 2023.

  • Recurring Revenue: $1.46 million from recurring sources.

  • Capital Equipment Sales: $773,000 from one-time sales.

  • Gross Margin: 64% in Q2 2024, compared to 66% in Q2 2023.

  • Operating Expenses: $9.3 million in Q2 2024, up 24% from $7.5 million in Q2 2023.

  • R&D Expenses: Increased 33% to $4.2 million year-over-year.

  • G&A Expenses: Increased by 1% to $2.1 million.

  • Sales and Distribution Expenses: Increased by 32% to $3 million.

  • Net Finance Income: $934,000 in Q2 2024, compared to a net finance expense of $884,000 in Q2 2023.

  • Net Loss: $6.9 million, or $0.28 per share, down from $7.3 million, or $0.35 per share, in Q2 2023.

  • Cash Position: $34.1 million as of June 30, 2024.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Profound Medical Corp (NASDAQ:PROF) reported a 39% increase in revenue for Q2 2024 compared to the same period in 2023, indicating strong financial growth.

  • The company anticipates full-year 2024 revenue to be in the range of $11 million to $12 million, showing confidence in continued revenue growth.

  • The TULSA procedure has been approved for use in all locations of service, providing broad access and flexibility for both patients and physicians.

  • The introduction of the TULSA-AI module has improved treatment planning accuracy and efficiency, receiving positive feedback from physicians.

  • Profound Medical Corp (NASDAQ:PROF) is forming closer relationships with major MRI companies, which could enhance the integration and adoption of their technology in prostate care.

Negative Points

  • Profound Medical Corp (NASDAQ:PROF) recorded a net loss of $6.9 million for Q2 2024, although this was a slight improvement from the previous year's loss.

  • Gross margin decreased slightly to 64% in Q2 2024 from 66% in Q2 2023, indicating some pressure on profitability.

  • Operating expenses increased by 24% year-over-year, driven by higher R&D and sales and distribution costs, which could impact future profitability.

  • The company faces challenges in transitioning from a cash pay model to a reimbursement model, which may affect short-term financial performance.

  • There is uncertainty regarding the finalization of new CPT codes and reimbursement rates, which could impact future revenue and adoption rates.

Q & A Highlights

Q: What kind of reaction are you getting from the physician community regarding the proposed reimbursement changes? A: Arun Menawat, CEO, explained that the physician community appreciates the flexibility of performing TULSA in various settings, such as imaging centers or physician offices. The economic benefits of TULSA, including potential profitability, are being well-received, and discussions are ongoing even before the final rule is issued.

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