Sofwave Medical Reports Third Quarter 2023 Financial Results and Business Highlights
– Third quarter revenue of $12.2M, +49% year-over-year growth
– Third quarter pulse recurring revenue of $3.1M, +99% year-over-year growth
– First nine months revenue of $35.0M, +60% year-over-year growth; gross margin of 73.8%
– Operating loss significantly narrowed to $1.2M in the third quarter of 2023 vs $5.2M in the same year ago period; Company approaching operating breakeven
– Over 185,000 treatments conducted since initial approval
SAN CLEMENTE, Calif., Nov. 08, 2023 (GLOBE NEWSWIRE) — Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the third quarter and first nine months of fiscal year 2023, for the period ended September 30, 2023, and recent business highlights.
Third Quarter and First Nine Months Financial Highlights
- Third Quarter Revenue of $12.2M; representing 49% year-over-year growth
- Recurring revenue of $3.1M, a year-over-year increase of 99%, representing 25.6% of total revenue
- Gross Profit was $8.9M, a year-over-year increase of 48%
- IFRS Gross Margin: 73.0%; *Non-IFRS: 73.2%
- IFRS Operating Loss: $1.2M; *Non-IFRS: $0.7M
- First Nine Months Revenue of $35.0M, representing 60% year-over-year growth
- Recurring revenue of $8.5M, a year-over-year increase of 92%, representing 24% of total revenue
- Gross Profit was $25.8M, a year-over-year increase of 60%
- IFRS Gross Margin: 73.8%; *Non-IFRS: 74.1%
- IFRS Operating Loss: $7.8M; *Non-IFRS: $6.0M
- Cash and Cash Equivalents as of September 30, 2023: $24.3M. Cash used in the third quarter of 2023 was only $1M compared to $5.1M in the third quarter of 2022
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave’s SUPERB™ aesthetic medical devices continue to gain significant traction across the global markets we serve. As such, our top-line results year-to-date have nearly surpassed our full-year 2022 total revenues, demonstrating the effectiveness of our go-to-market strategy and the growing adoption of Sofwave SUPERB™ technology. This demand is further evidenced by our record pulse sales, attaining the milestone of over 185,000 treatments. Moreover, we continue to drive efficiencies in our business and further narrow our operating loss. We are well-positioned to achieve operating breakeven and profitability in the near-term. In addition, we continue to expand our product portfolio and enter new markets, allowing us to further leverage the growing demand for our suite of technologies.”
Dr. Shimon Eckhouse, Chairman & Co-Founder, added, “We are pleased by the strong results we continue to generate with our SUPERB™ technology platform and look forward to launching new innovations and further broadening our geographic reach in the most important medical aesthetic markets. Importantly, we believe the success and popularity of a new class of weight-loss, GLP-1 based drugs that have come to market, will further drive demand for our growing line of treatment indications. As such, we are undertaking a number of key initiatives aimed at leveraging our position as a market leader in non-invasive skin tightening and lifting on face and body. Looking ahead, Sofwave has a substantial opportunity to transform a medical aesthetic industry that is clearly in need of enhanced innovation and we are confident in our ability to continue executing our growth strategy.”
Operational Highlights (First nine months of 2023)
- Obtained FDA clearance for reduction of Ance Scars
- Obtained FDA clearance for the “Precise” SUPERB™ applicator
- Granted FDA clearance for Sofwave Smart™ IoT Module
- Granted regulatory approval for SUPERB™ technology in Mexico
- Received second U.S. patent for the Company’s proprietary SUPERB™ technology
- Launched new subsidiary in the United Kingdom
- Over 185,000 treatments conducted since initial market approval
Financial Summary
| IFRS Results (U.S. dollars in thousands) |
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| Q3’23 | Q3’22 | 9M’23 | 9M’22 | |||||||||
| Revenues | $12,226 | $8,200 | $35,013 | $21,851 | ||||||||
| Gross Profit | $8,920 | $6,035 | $25,830 | $16,105 | ||||||||
| Gross Margin | 73.0% | 73.6% | 73.8% | 73.7% | ||||||||
| Operating Loss | ($1,210) | ($5,158) | ($7,826) | ($14,203) | ||||||||
| *Non-IFRS Results (U.S. dollars in thousands) |
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| Q3’23 | Q3’22 | 9M’23 | 9M’22 | |||||||||
| Revenues | $12,226 | $8,200 | $35,013 | $21,851 | ||||||||
| Gross Profit | $8,953 | $6,092 | $25,945 | $16,296 | ||||||||
| Gross Margin | 73.2% | 74.3% | 74.1% | 74.6% | ||||||||
| Operating Loss | ($726) | ($3,899) | ($5,967) | ($10,213) | ||||||||
(*) Excluding stock-based compensation
About Sofwave Medical Ltd.
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using its proprietary breakthrough technology. SUPERB™, Synchronous Ultrasound Parallel Beam technology is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin) and neck tissue, the short-term improvement in the appearance of cellulite and treatment of acne scars, providing physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
