In This Article:
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Revenue: $4.2 million for Q4 2024, including $2.7 million from current revenue and $1.5 million from one-time sale of capital equipment.
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Revenue Growth: 108% increase from $2 million in Q4 2023.
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Gross Margin: 71% in Q4 2024, compared to 52% in Q4 2023.
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Operating Expenses: $11.3 million in Q4 2024, up from $9.8 million in Q4 2023.
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Net Loss: $4.9 million or $0.20 per common share in Q4 2024, a 45% improvement from a net loss of $8.9 million or $0.42 per common share in Q4 2023.
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Cash Position: $54.9 million as of December 31, 2024.
Release Date: March 06, 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 record revenue of $4.2 million for Q4 2024, marking a 108% increase from the same period in 2023.
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The company achieved a gross margin of 71% in Q4 2024, a significant improvement from 52% in Q4 2023.
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Profound Medical Corp (NASDAQ:PROF) reduced its net loss by 45% compared to the same quarter in the previous year.
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The company ended 2024 with a strong cash position of $54.9 million.
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Profound Medical Corp (NASDAQ:PROF) is on track with its captain randomized trial, having met its enrollment target, which could enhance its market position and reimbursement acceptance.
Negative Points
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Total operating expenses increased to $11.3 million in Q4 2024 from $9.8 million in Q4 2023, indicating rising costs.
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Despite improvements, the company still recorded a net loss of $4.9 million for Q4 2024.
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The company did not meet its target of reaching 75 sites by the end of 2024.
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Profound Medical Corp (NASDAQ:PROF) is transitioning to a capital sales model, which may present challenges in predictability and execution.
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There is uncertainty regarding the timing and extent of payments from Medicare and private insurers, which could impact cash flow.
Q & A Highlights
Q: Can you discuss the confidence behind the projected strong growth rates for 2025 and beyond, especially in the context of the new Medicare reimbursement environment? A: Arun Menawat, CEO, explained that the clinical value of their product is well-received, and the economic models show profitability for hospitals due to higher reimbursement rates. The company had a strong Q4 in terms of capital sales, and the sales team is energized. Tom Tamberrino, CCO, added that the Medicare coverage has increased inquiries, and they are pursuing private payers to ensure broader coverage, which supports their growth projections.