Profound Medical Corp Reports Second Quarter 2024 Financial Results
Intellectia.AI1970-01-01
Profound Medical Corp. Reports Second Quarter 2024 Financial Results
Profound Medical Corp. (NASDAQ:PROF, TSX:PRN), a commercial-stage medical device company, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates | Actual vs Estimates |
|---|---|---|---|---|---|
| Total Revenue | $2.23M | $1.60M | +39% | $2.59M | Miss (-$0.36M) |
| EPS | $-0.28 | $-0.35 | +20% | $-0.29 | Beat (+$0.01) |
| Net Loss | $6.9M | $7.3M | +5.5% | Not Provided | Not Provided |
| Operating Expenses | $9.3M | $7.5M | +24% | Not Provided | Not Provided |
| Net Finance Income/Expense | $934K (Income) | $884K (Expense) | Positive | Not Provided | Not Provided |
Interpretation: Profound Medical saw a significant 39% year-over-year increase in total revenue for Q2 2024, although it missed the consensus estimate by $0.36 million. The company also reported a net loss of $6.9 million or $0.28 per share, which positively surprised the market by being $0.01 above the consensus EPS estimate of $-0.29. The improvement in EPS from the previous year’s $-0.35 indicates better cost management despite an increase in operating expenses.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Comments |
|---|---|---|
| Recurring Revenue | $1.46M | Driven by sales of TULSA-PRO® consumables and procedures |
| One-Time Sale of Equipment | $773K | Notable increase compared to previous periods |
Interpretation: The revenue from recurring sources, which include consumables and procedures, constituted the bulk of the total revenue, showcasing stability and ongoing customer reliance on Profound Medical’s products. The one-time sale of capital equipment also added a notable sum, highlighting periodic boosts from equipment sales.
Operational Data
| Metric | Q2 2024 | Q1 2024 | Notes |
|---|---|---|---|
| TULSA-PRO® Systems Installed Base | 57 | 53 | Expected to grow to 75 systems by year-end |
Interpretation: The installed base of TULSA-PRO® systems increased from 53 to 57, indicating growth and increased adoption of their technology.
Comments from Company Officers
Arun Menawat, CEO and Chairman of Profound Medical, emphasized the company's strong commercial progress and highlighted the upcoming permanent CPT® Category 1 codes for TULSA as a potential major inflection point for its business. He noted that adequate reimbursement is essential for widespread adoption and believes that CMS’s proposed rule for TULSA will position the company favorably against existing treatment modalities.
Forward Guidance
For full-year 2024, Profound Medical anticipates total revenue in the range of $11.0 million to $12.0 million, representing year-over-year growth of 53% to 67%.
Stock Price Movement
Post-earnings release, the company's stock experienced a decline of -1.15%.
Summary: Profound Medical's Q2 2024 financial results reflect significant revenue growth and a narrowed net loss, suggesting improved operational efficiency. However, the company missed the consensus revenue estimate. Positive remarks from the CEO signal strong strategic positioning ahead of important regulatory updates and anticipated widespread adoption. The stock saw a minor decline post-release, reflecting mixed investor sentiment.
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