In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Profound Medical Corp (NASDAQ:PROF) reported a significant revenue increase of 82% in Q1 2025 compared to the same period in 2024.
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The company's gross margin improved to 71% in Q1 2025 from 60% in Q1 2024, indicating better cost management.
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The Tulsa Pro technology demonstrated strong clinical outcomes, including no blood loss and no overnight hospital stays, enhancing patient recovery and satisfaction.
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The introduction of the Tulsa AI volume reduction module is expected to significantly reduce procedure time for BPH treatments, potentially expanding the market.
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Profound Medical Corp (NASDAQ:PROF) has secured Level 7 reimbursement from CMS, which is higher than its peers, facilitating broader adoption across various healthcare settings.
Negative Points
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Profound Medical Corp (NASDAQ:PROF) reported a net loss of $10.7 million in Q1 2025, an increase from a $6.6 million loss in the same period in 2024.
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Operating expenses rose significantly to $13 million in Q1 2025 from $8.7 million in Q1 2024, driven by increased R&D and SG&A costs.
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The transition from a placement model to a capital model may result in a back-end loaded revenue recognition, potentially impacting short-term financial performance.
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Despite positive clinical outcomes, the company faces challenges in converting clinical success into widespread commercial adoption.
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The company's reliance on new site installations and conversions for capital revenue growth may pose risks if adoption rates do not meet expectations.
Q & A Highlights
Q: Can you share any feedback received after the Captain trial data was presented at the AUA conference? A: The feedback was very positive, especially from teaching hospitals, as the data supports mainstream adoption. The Captain trial is the first successful randomized control trial comparing a new technology to robotic radical prostatectomy, and it has been well-received for its potential to drive adoption and influence guidelines. (Respondent: Unidentified_6)
Q: What are the plans for presenting the Captain trial data to commercial insurers? A: Conversations with insurers have begun, and there is a small team dedicated to this effort. Some private insurers have already started pre-approving treatments. The expectation is for a smooth pathway to policy establishment, given the existing reimbursement framework. (Respondent: Unidentified_6)