Sofwave Medical Reports Second Quarter and First Half 2024 Financial Results and Business Highlights
- Second quarter revenue of $14.6M, +18% year-over-year growth; IFRS gross margin of 76.1%
- Second quarter pulse recurring revenue of $6.0M, +83% year-over-year growth
- First half revenue of $27.8M, +22% year-over-year growth, IFRS gross margin of 75.7%
- First half IFRS and Non-IFRS operating loss continues to narrow substantially and decreased YoY by 66% and 80%, respectively
- Sofwave continues to expect to achieve operating break-even in 2024
SAN CLEMENTE, Calif., Aug. 06, 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 second quarter and first half of fiscal year 2024, for the period ended June 30, 2024, and recent business highlights.
Second Quarter and First Half Fiscal 2024 Financial Highlights
- Second Quarter Revenue of $14.6M; representing 18% year-over-year growth
- Recurring Revenue of $6.0M, a year-over- year increase of 83%, representing 41% of total revenue
- Gross Profit was $11.1M, a year-over-year increase of 21%
- IFRS Gross Margin: 76.1%; *Non-IFRS 76.3%
- IFRS Operating Loss: $1.2M; down from $2.9M in second quarter of 2024; *Non-IFRS: $0.6M
- First Half Revenue of $27.8M, representing 22% year-over-year growth
- Recurring Revenue of $27.8M, a year-over-year increase of 65%, representing 39% of total revenue
- Gross Profit was $21.1M, a year-over-year increase of 25%
- IFRS Gross Margin: 75.7%; *Non-IFRS 75.8%
- IFRS Operating Loss: $2.2M; *Non-IFRS: $1.0M
- Cash and Cash Equivalents as of June 30, 2024: $21.1M
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We are delighted with the quarter’s strong financial results and operational performance highlighted by recurring revenue growing 83% year-over-year and representing over 40% of total revenue in the reported period. Our impressive results were supported by the additional Practice Development Managers dedicated to assist customers in the field employ best practice with the Sofwave technology and drive further pulse utilization. Over 300,000 Sofwave treatments have now been conducted since our initial FDA approval. Our focus for the remainder of the year remains on execution and growing demand for our technology, with a particular emphasis on increasing brand awareness through enhanced social media engagement with both prospective physicians and patients. Importantly, we are pleased to highlight that we are on track to deliver operational break-even on a full year basis in 2024.”
Dr. Shimon Eckhouse, Chairman of the Board, added: “We continue our efforts to expand product portfolio adoption by introducing novel breakthrough technologies and delivering a new standard of care alongside superior results to patients and physicians alike. We are also leveraging the expanded interest in non-invasive, energy-based medical aesthetic solutions from the growth in use of GLP-1 inhibitors. As such, our strategic focus on core medical doctors comprised mainly of dermatologists and plastic surgeons continues to bear fruit despite the general slowdown in the medical aesthetics industry due to macroeconomic conditions.”
Recent Operational Highlights
- In the U.S., six regionally based Practice Development Managers (PDMs) were added to help customers in the field and drive pulse utilization.
- National “Got Lift Day” campaign in June received unprecedented engagement from both B2B and B2C, including 45,000+ social media interactions and 44,000+ likes.
- Social media grew to over 930,000 followers.
Financial Summary (Q2 FY’24)
| IFRS Results (U.S. dollars in thousands) |
||
| Q2 2024 | Q2 2023 | |
| Revenues | $14,642 | $12,380 |
| Gross Profit | $11,148 | $9,239 |
| Gross Margin | 76.1% | 74.6% |
| Operating Loss | ($1,212) | ($2,876) |
| *Non-IFRS Results (U.S. dollars in thousands) |
||
| Q2 2024 | Q2 2023 | |
| Gross Profit | $11,165 | $9,280 |
| Gross Margin | 76.3% | 75.0% |
| Operating (Loss)/Profit | ($592) | ($2,233) |
(*) 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
