In This Article:
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Revenue: $8.8 million in Q3 2024, down 1% from $8.9 million in Q3 2023.
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Gross Margin: Improved to 60.3% in Q3 2024 from 56% in Q3 2023.
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Operating Expenses: $7 million in Q3 2024; $5.2 million excluding a one-time accrual, down from $5.6 million in Q3 2023.
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Net Recurring Revenue: $5.4 million in Q3 2024, up from $5.3 million in Q3 2023.
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Gross Profit: Increased to $5.3 million in Q3 2024 from $5 million in Q3 2023.
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Cash Position: $8.4 million as of September 30, 2024, including $1.3 million of restricted cash.
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Equipment Revenue: $3.4 million in Q3 2024, down from $3.6 million in Q3 2023.
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Installed Base of XTRAC Devices: Decreased to 873 units at the end of Q3 2024 from 882 units at the end of Q2 2024.
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Equity Raise: $2.1 million in gross proceeds through the sale of 665,136 shares.
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue per extract device grew 2% year over year, indicating a positive trend compared to previous quarters.
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Gross margin improved for the third consecutive quarter, reaching 60.3% in Q3 2024.
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Operating expenses, excluding a one-time accrual, decreased to $5.2 million in Q3 2024 from $5.6 million in Q3 2023.
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The company achieved its first operating profit since 2018, excluding the one-time accrual.
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The direct-to-consumer initiative showed promising results, with over 1900 new patient appointments scheduled year-to-date, surpassing pre-pandemic levels.
Negative Points
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Total revenue for Q3 2024 declined by 1% compared to Q3 2023.
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Domestic installed base of extract devices decreased slightly, aligning with the strategy to remove underperforming units.
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Gross domestic recurring billings were down 2% year over year in Q3 2024.
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The company faced a one-time accrual of $1.8 million related to a New York State sales tax audit.
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Equipment revenue decreased to $3.4 million in Q3 2024 from $3.6 million in Q3 2023.
Q & A Highlights
Q: Can you provide more details on the financial performance and key metrics for the third quarter of 2024? A: Dolev Rafaeli, CEO, highlighted that revenue per XTRAC device grew by 2% year-over-year, and gross margin improved to 60.3%. Operating expenses, excluding a one-time accrual, decreased to $5.2 million. The company achieved its first operating profit since 2018, excluding the one-time accrual. The direct-to-consumer initiative has been successful, with over 1,900 new patient appointments scheduled year-to-date.
Q: What was the impact of the New York State sales tax audit on the financials? A: John Gillings, VP Finance, explained that a $1.8 million accrual was made in the third quarter related to a sales tax audit for 2014-2017. The unfavorable legal decision resulted in this accrual, which is covered by restricted cash. This impacted the operating expenses for the quarter.