Sofwave Medical Reports Third Quarter 2024 Financial Results and Business Highlights
— Third quarter revenue of $13.5M, +10.5% year-over-year growth; IFRS gross margin of 75.2%
— Third quarter pulse recurring revenue of $5.4M, +72% year-over-year growth
— First nine months revenue of $41.3M, +18% year-over-year growth; IFRS gross margin of 75.5%
— First nine months IFRS and non-IFRS operating loss decreased 55% and 70%, respectively, to $3.5M vs $7.8M and $1.8M vs $6.0M in the same year ago period
— Generated positive quarterly cash flow
SAN CLEMENTE, Calif., Nov. 13, 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 third quarter and first nine months of fiscal year 2024, for the period ended September 30, 2024, and recent business highlights.
Third Quarter and First Nine Months 2024 Financial Highlights
- Third Quarter Revenue of $13.5M; representing 10.5% year-over-year growth
- Recurring revenue of $5.4M, a year-over-year increase of 72%, representing 40% of total revenue
- Gross Profit was $10.2M, a year-over-year increase of 14%
- IFRS Gross Margin: 75.2%; *Non-IFRS: 75.3%
- IFRS Operating Loss: $1.3M; *Non-IFRS: $0.8M
- Cash from Operating Activities: $0.2M compared to $1M of cash used in the corresponding period
- First Nine Months Revenue of $41.3M, representing 18% year-over-year growth
- Recurring revenue of $16.1M, a year-over-year increase of 88%, representing 39% of total revenue
- Gross Profit was $31.2M, a year-over-year increase of 21%
- IFRS Gross Margin: 75.5%; *Non-IFRS: 75.7%
- IFRS Operating Loss: $3.5M; down from $7.8M during first nine months of 2023; *Non-IFRS: $1.8M
- Cash and Cash Equivalents as of September 30, 2024: $21.2M
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave continues to deliver and expand its industry leading non-invasive medical aesthetic product portfolio to customers and patients. Moreover, in the face of both challenging macro-economic and medical aesthetic market pressures, we continue to generate strong top- and bottom-line results. During the first nine months of 2024, the Company experienced significant double-digit revenue and gross profit growth, and an increase of recurring pulse sales representing nearly 40% of total revenue, while substantially narrowing operating loss. We believe this is a result of not only Sofwave’s superior business model, which enables faster ROI, and rapidly expanding brand awareness, but also the delivery of best-in-class patient results, which is driving further repeat business.”
Dr. Shimon Eckhouse, Chairman & Co-Founder, added, “Since the commercial launch of Sofwave in 2020, over 385,000 treatments have been conducted with our transformative technology. We have nine FDA clearances and the emergence of GLP-1 agonists that are driving demand for tightening, lifting, laxity improvement and toning is providing us the opportunity to fully leverage these broad regulatory approvals. Looking ahead, we have a scalable, lean infrastructure that will support continued top-line growth and bottom-line improvement.”
Recent Operational Highlights
- Dr. Kavita Darji wins the Drs. Alastair and Jean D. Carruthers Award at ASDS 2024 for Sofwave SUPERB™ abstract
- Larry Laber, aesthetic energy-based device sales leadership veteran, joins Sofwave as Executive Vice President, North American Sales
- Over 385,000 treatments conducted since initial market approval
- Sofwave appoints Mr. Miguel Pardos to the role of Chief Commercial Officer
Mr. Miguel Pardos is a seasoned C-Suite executive with over 25 years of experience in the international medical aesthetics and healthcare industry. He has a strong track record as an industry leader in addition to successfully accelerating revenue growth at companies while under his helm. Before joining Sofwave, Mr. Pardos served as the Chief Executive Officer of Sinclair, a UK-based aesthetic company with a portfolio of injectables and energy-based devices. Previously held positions include CEO of Cocoon Medical, EVP International at Cutera, VP of APAC at Syneron Candela and various leadership positions at GE Healthcare. Mr. Pardos holds a BSc in Engineering and an MBA from Instituto de Empresa (Ie).
Financial Summary
| IFRS Results (U.S. dollars in thousands) | ||||
| Q3’24 | Q3’23 | 9M’24 | 9M’23 | |
| Revenues | $13,507 | $12,226 | $41,333 | $35,013 |
| Gross Profit | $10,156 | $8,920 | $31,218 | $25,830 |
| Gross Margin | 75.2% | 73.0% | 75.5% | 73.8% |
| Operating Loss | ($1,314) | ($1,210) | ($3,484) | ($7,826) |
| *Non-IFRS Results (U.S. dollars in thousands) | ||||
| Q3’24 | Q3’23 | 9M’24 | 9M’23 | |
| Revenues | $13,507 | $12,226 | $41,333 | $35,013 |
| Gross Profit | $10,170 | $8,952 | $31,271 | $25,946 |
| Gross Margin | 75.3% | 73.2% | 75.7% | 74.1% |
| Operating Loss | ($785) | ($726) | ($1,785) | ($5,967) |
(*) 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), to improve the appearance of skin laxity on the upper 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
Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
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