Q1 2024 revenues were $5.8 million, up 53% from Q1 2023
Q1 2024 gross margin was 73%, up 600bp from Q1 2023
Operating loss was $1.1 million for Q1 2024 compared to $2.0 million for Q1 2023
Company provides guidance for revenue growth of 45-55% for Q2 2024 versus Q2 2023 and reiterates revenue growth guidance of 50% for FY 2024 compared to FY 2023
EDEN PRAIRIE, MN - (NewMediaWire) - May 10, 2024 - SANUWAVE Health, Inc. (the "Company" or "SANUWAVE") (OTCQB: SNWV), a leading provider of next-generation FDA-approved wound care products, is pleased to provide its financial results for the three months ended March 31, 2024.
Q1 2024 ended March 31, 2024
Revenue for the three months ended March 31, 2024, totaled $5.8 million, an increase of 53%, as compared to $3.8 million for the same period of 2023. This growth is within the previous guidance for a 45 55% increase.
43 UltraMist(R) systems were sold in Q1 2024, up from 28 in Q1 2023, and down from 79 in Q4 2023.
UltraMist(R) consumables revenue increased by 64% to $4.1 million (71% of revenues) in Q1 2024, versus $2.5 million for the same quarter last year. UltraMIST systems and consumables remained the primary revenue growth driver and continued to represent in excess of 90% of SANUWAVE's overall revenues in Q1 2024.
Gross margin as a percentage of revenue amounted to 73% for the three months ended March 31, 2024, vs. 67% for the same period last year, driven by the increase in average selling price of UltraMist(R) and stabilization of cost of sales in 2024.
For the three months ended March 31, 2024, operating loss totaled $1.1 million, an improvement of $0.9 million compared to Q1 2023 as a result of the Company's continued efforts to drive profitable growth and manage expenses.
Net loss for the first quarter of 2024 was $4.5 million, driven predominantly by the change in the fair value of derivative liabilities, and interest expense.
Adjusted EBITDA [1] loss for the three months ended March 31, 2024, was $59 thousand versus an Adjusted EBITDA loss of $1.8 million for the same period last year, an improvement of $1.7 million.
"The first quarter showed an acceleration in year over year revenue growth rate for Sanuwave as we start to see the results of all the hard work put in on manufacturing, operations, and increasingly sales," said Morgan Frank, CEO. "This was the best first quarter in Company history by a wide margin, and Adjusted EBITDA remained near break-even level despite some meaningful non-recurring costs in the quarter. Like much of the life science and medical device space, the first quarter is a seasonally slower time for Sanuwave, but this did not stop us from accelerating our growth rate and setting the groundwork to build and sustain this higher growth. We hired four new salespeople in the quarter and are looking to hire more going forward. We aim for 2024 to be the breakout year for Sanuwave."
Financial Outlook
The Company forecasts Q2 2024 revenue to rise 45-55% vs Q2 2023 and for gross margin as a percentage of revenue to remain in the mid 70s.
Our merger with SEPA remains ongoing and active. We're continuing to work toward finalizing the exchange listing and the Company believes it sees a path to closing this transaction in May.
As previously announced, a business update will occur via conference call on May 10, 2024 at 8:30 a.m. EST. Materials for the conference call are included on the Company website at
A replay will be made available through June 3, 2024:
Toll-Free: 1-844-512-2921 or 1-412-317-6671
Replay Access ID: 1155590
About SANUWAVE
SANUWAVE Health is focused on the research, development, and commercialization of its patented, non-invasive and biological response-activating medical systems for the repair and regeneration of skin, musculoskeletal tissue, and vascular structures.
SANUWAVE's end-to-end wound care portfolio of regenerative medicine products and product candidates helps restore the body's normal healing processes. SANUWAVE applies and researches its patented energy transfer technologies in wound healing, orthopedic/spine, aesthetic/cosmetic, and cardiac/endovascular conditions.
Non-GAAP Financial Measures
This press release includes certain financial measures that are not presented in our financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) ("U.S. GAAP"). These financial measures are considered "non-GAAP financial measures" and are intended to supplement, and should not be considered as superior to, or a replacement for, financial measures presented in accordance with U.S. GAAP.
The Company uses Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA to assess its operating performance. Adjusted EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization adjusted for the change in fair value of derivatives and any significant non-cash or infrequent charges. EBITDA and Adjusted EBITDA should not be considered as alternatives to net loss as a measure of financial performance or any other performance measure derived in accordance with GAAP, and they should not be construed as an inference that the Company's future results will be unaffected by unusual or infrequent items. These non-GAAP financial measures are presented in a consistent manner for each period, unless otherwise disclosed. The Company uses these measures for the purpose of evaluating its historical and prospective financial performance, as well as its performance relative to competitors. These measures also help the Company to make operational and strategic decisions. The Company believes that providing this information to investors, in addition to GAAP measures, allows them to see the Company's results through the eyes of management, and to better understand its historical and future financial performance. These non-GAAP financial measures are also frequently used by analysts, investors, and other interested parties to evaluate companies in our industry, when considered alongside other GAAP measures.
EBITDA and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Some of these limitations are that EBITDA and Adjusted EBITDA:
Do not reflect every expenditure, future requirements for capital expenditures or contractual commitments.
Do not reflect all changes in our working capital needs.
Do not reflect interest expense, or the amount necessary to service our outstanding debt.
As presented in the GAAP to Non-GAAP Reconciliations section below, the Company's non-GAAP financial measures exclude the impact of certain charges that contribute to our net loss.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future financial results, production expectations and constraints, plans for future business development activities and the planned merger with SEP Acquisition Corp. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are risks associated with supply chain and production constraints, regulatory oversight, the Company's ability to manage its capital resource issues, competition, the Company's ability to consummate the proposed business combination with SEP Acquisition Corp. and the other factors discussed in detail in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
