Profound Medical ((TSE:PRN)) has held its Q4 earnings call. Read on for the main highlights of the call.
Profound Medical’s recent earnings call exuded a positive sentiment, highlighting significant achievements in revenue growth, improved margins, and a bolstered commercial organization. Despite ongoing net losses and increased expenses, the company remains optimistic about future growth, driven by new clinical data, reimbursement improvements, and strategic expansions.
Record Fourth Quarter Revenue
Profound Medical reported a record revenue of $4.2 million in Q4 2024, marking a remarkable 108% increase from the $2 million recorded in the same period of 2023. This substantial growth underscores the company’s successful strategies in expanding its market presence and enhancing its revenue streams.
Improved Gross Margin
The company achieved a gross margin of 71% in Q4 2024, a significant improvement from 52% in Q4 2023. This increase in profitability reflects the company’s effective cost management and operational efficiencies.
Significant Reduction in Net Loss
Profound Medical made notable strides in reducing its net loss, which stood at $4.9 million in Q4 2024, a 45% improvement compared to the net loss of $8.9 million in Q4 2023. This reduction highlights the company’s efforts to streamline operations and enhance financial performance.
Strong Cash Position
As of December 31, 2024, Profound Medical maintained a robust cash reserve of $54.9 million, indicating strong financial stability and providing a solid foundation for future growth initiatives.
Successful Clinical Trials and Presentations
The TULSA-PRO technology was prominently featured in 17 presentations at major society meetings, showcasing its precision and flexibility in treating prostate disease. This exposure is expected to bolster the technology’s adoption and market penetration.
Expansion of Commercial Organization
Profound Medical successfully revamped its commercial organization by recruiting a world-class sales team. This strategic move aims to drive significant growth and enhance the company’s market reach.
Positive Market and Reimbursement Outlook
With Medicare reimbursement now in place, Profound Medical is confident in achieving robust growth, with expectations of high double-digit revenue growth in 2025. This positive outlook is bolstered by strategic expansions and improved reimbursement terms.
Increased Operating Expenses
The company’s operating expenses rose to $11.3 million in Q4 2024, up from $9.8 million in Q4 2023. Despite this increase, the company remains focused on strategic investments to support future growth.
Continued Net Loss
Despite the improvements, Profound Medical recorded a net loss of $4.9 million in Q4 2024. The company continues to work towards achieving profitability through strategic initiatives and operational efficiencies.
Uncertain Private Insurance Payments
Profound Medical is actively working to secure payments from private insurers, focusing on obtaining preauthorization and favorable reimbursement terms to enhance its revenue streams.
Forward-Looking Guidance
Looking ahead, Profound Medical anticipates high double-digit growth in 2025 and triple-digit growth starting in 2026. This optimistic forecast is driven by the adoption of its TULSA-PRO technology and strategic commercial initiatives, including the introduction of new AI modules and expanded reimbursement opportunities.
In summary, Profound Medical’s earnings call reflects a positive outlook, with significant achievements in revenue growth and improved margins. Despite ongoing challenges, the company is poised for future growth, driven by strategic expansions, new clinical data, and improved reimbursement opportunities.