The chart below shows how ICAD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ICAD sees a +4.00% change in stock price 10 days leading up to the earnings, and a -1.55% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q3 Revenue Growth Analysis: Revenue growth of 4% in Q3 2024 compared to Q3 2023, reaching $4.2 million, driven by key deals and an expanded sales team.
Enhanced Cancer Detection Accuracy: ProFound Detection Version 4.0 received FDA clearance, offering a 22% improvement in detecting challenging cancers and an 18% reduction in false positives, enhancing diagnostic accuracy and efficiency.
Q3 Deal Closure Summary: Closed a total of 85 deals in Q3 2024, including 13 cloud deals, contributing over $850,000 to backlog for both billings and GAAP revenue.
Annual Recurring Revenue Growth: Total Annual Recurring Revenue (TARR) increased to $9.3 million as of September 30, 2024, up from $8.4 million in Q3 2023, reflecting strong growth in subscription and cloud services.
Rapid Adoption and Efficiency: ProFound Cloud processed over 100,000 cases in its first two full quarters of U.S. availability, demonstrating rapid early adoption and achieving processing speeds more than 50% faster than traditional solutions.
Negative
Increased Net Loss: GAAP net loss from continuing operations increased to $1,800,000 or $0.07 per diluted share in Q3 2024, compared to a loss of $1,000,000 or $0.04 per diluted share in Q3 2023, indicating a worsening financial performance year-over-year.
Operating Expenses Increase: Total operating expenses rose by $900,000 or 19% year-over-year to $5,600,000 in Q3 2024, primarily driven by increased investments in R&D and regulatory efforts, which may strain future profitability.
Service Revenue Decline: Service revenue declined by 9% year-over-year to $1,700,000 in Q3 2024, reflecting a shift of service customers migrating to subscription or cloud products, negatively impacting overall revenue stability.
Maintenance Services Revenue Decline: Maintenance services ARR decreased to $6,700,000 from $7,000,000 in Q3 2023, indicating a loss of recurring revenue as customers transition to newer subscription models, which could affect long-term revenue predictability.
Operating Cash Flow Challenges: Net cash used for operating activities was $2,600,000 for the first nine months of 2024, showing a significant cash outflow that, despite a year-over-year improvement, still highlights ongoing financial challenges.
Earnings call transcript: iCAD Q3 2024 sees revenue rise, SaaS shift
ICAD.O
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