Accuray (ARAY) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $134.3M, up 14% year-over-year, driven by strong international demand and record system shipments, despite U.S. market headwinds.

• International markets contributed over 80% of annual revenue, with significant growth in China, APAC, and EIMEA, offsetting a 26% decline in Americas revenue.

• Strategic milestones included regulatory approvals for TomoTherapy and Accuray Precision TPS in China and CE Mark for Helix in India and Europe, expanding addressable markets.

• Strong backlog of $487.3M (over two years of product revenue), with a global book-to-bill ratio of 1.5 for the year.

• Implemented new product installations and signed key service agreements, including with TrueNorth Medical Physics, to enhance offerings.

Financial highlights

• Q4 net revenue: $134.3M (+14% YoY); full-year revenue: $446.6M (flat YoY).

• Q4 product revenue: $79.7M (+28% YoY); service revenue: $54.6M (down 2% YoY); 36 system shipments, a record.

• Q4 gross margin: 28.6% (down from 31.9% YoY), impacted by China margin deferral and supplier quality issue.

• Q4 operating income: $6.8M (vs. $0.5M loss prior year); Q4 adjusted EBITDA: $10.1M (vs. $5.2M prior year).

• Full-year adjusted EBITDA: $19.7M (vs. $23.9M prior year), impacted by timing of China margin and supplier costs.

Outlook and guidance

• FY25 revenue guidance: $460M–$470M; adjusted EBITDA: $27.5M–$29.5M.

• Guidance assumes U.S. market recovery in 2H FY25 and China margin deferral release starting Q2 FY25.

• Projected FY25 GAAP net loss: $3M–$5M.

• Expect 3–5% top-line growth and >40% EBITDA growth for FY25.