Sofwave Medical Reports First Quarter 2024 Financial Results and Business Highlights
- First quarter revenue of $13.2M, +27% year-over-year growth; IFRS gross margin of 75.2%
- First quarter pulse recurring revenue of $4.7M, +118% year-over-year growth
- IFRS and non-IFRS operating loss narrowed to -$1.0M and -$0.4M, respectively; company approaching breakeven
SAN CLEMENTE, Calif., May 09, 2024 (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 first quarter of fiscal year 2024, for the period ended March 31, 2024, and recent business highlights.
First Quarter Fiscal 2024 Financial Highlights
- First Quarter Revenue of $13.2M; representing 27% year-over-year growth
- Recurring Revenue of $4.7M, a year-over- year increase of 118%, representing 36% of total revenue
- Gross Profit was $9.9M, a year-over-year increase of 29%
- IFRS Gross Margin: 75.2%; *Non-IFRS 75.4%
- IFRS Operating Loss: $1.0M; down from $3.7 million in first quarter of 2023; *Non-IFRS Operating Loss: $0.4M
- Cash and Cash Equivalents as of March 31, 2024: $23.1M, Cash used in the first quarter of 2024 of $1.3M down from $3.0M in the first quarter of 2023.
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We continue to experience significant tailwinds for our disruptive technology and unique business model, as demonstrated by the 27% top-line growth generated in the first quarter of 2024. Of significance, recurring pulse sales are an increasingly significant contributor to our strong financial results, with recurring pulse sales representing more than one third of our total first quarter revenue. We believe this is indicative of both the substantial customer satisfaction rate associated with our innovative and highly effective SUPERB™ technology, as well as our ability to drive relationships and utilization within our growing customer base. Our goal is for our customers to demonstrate long-term success with our platform of products, above and beyond the one-time capital equipment sale. Looking towards the rest of the year, we intend to drive further brand awareness through our expanding business-to-consumer engagement campaigns and via our panel of leading physician KOLs and influencers. We are also reinforcing our goal for operational break-even on a full year basis in 2024.”
Dr. Shimon Eckhouse, Chairman of the Board, added: “During the first quarter of 2024, Sofwave continued to achieve significant progress in furthering the Company’s goal of becoming the clear market leader in providing superior non-invasive energy based aesthetic solutions. The first quarter was highlighted by the commercial launch of Pure Impact™, which is our strength and muscle toning body module utilizing PlyoPulse™ EMS technology. This transformative solution will increasingly leverage the demand for skin lifting and muscle toning procedures being driven by the widespread use of GLP-1 inhibitors.”
Recent Operational Highlights
- U.S. FDA granted 510(k) marketing clearance approval and US launch for Pure Impact™ strength and muscle toning body module utilizing PlyoPulse™ EMS technology.
- Over 280,000 treatments have been conducted since initial market approval.
- Re-confirming Company will achieve operating break-even in 2024
Financial Summary (Q1 FY’24)
| IFRS Results (U.S. dollars in thousands) |
||||||
| Q1 2024 | Q1 2023 | |||||
| Revenues | $13,184 | $10,407 | ||||
| Gross Profit | $9,914 | $7,671 | ||||
| Gross Margin | 75.2% | 73.7% | ||||
| Operating Loss | ($957) | ($3,740) | ||||
| *Non-IFRS Results (U.S. dollars in thousands) |
||||||
| Q1 2024 | Q1 2023 | |||||
| Gross Profit | $9,935 | $7,713 | ||||
| Gross Margin | 75.4% | 74.1% | ||||
| Operating (Loss)/Profit | ($445) | ($3,008) | ||||
(*) Excluding stock-based compensation.
About
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), lifting lax skin in the arms, as well as the short-term improvement in the appearance of cellulite and treatment of acne scars. The company’s Pure Impact™ module uses EMS technology and is cleared for muscle toning. Sofwave’s products provide physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
