C-RAD (CRAD) Q2 2024 earnings summary

Executive summary

• Achieved 43% year-over-year revenue growth in Q2 2024, marking the second-best revenue quarter ever, with EBIT margin rising to 14% amid challenging macroeconomic conditions and strong global market reach, especially in APAC and Americas.

• EBIT more than doubled from SEK 7 million to SEK 18 million, with net earnings nearly doubling to 10.6 MSEK and EPS at 0.31 SEK for Q2.

• Order intake increased by 8% in constant currencies to 127.4 MSEK, with a growing backlog reaching 734.0 MSEK, reflecting robust demand.

• Continued focus on profitable growth, cost management, and expanding installed base and service contracts.

• Net earnings for H1 rose 207% to 26.7 MSEK.

Financial highlights

• Q2 revenue: 129.4 MSEK (+43% YoY); H1 revenue: 247.4 MSEK (+41% YoY).

• Gross margin improved significantly, reaching 68% in Q2, mainly due to a higher share of proton orders; this is considered exceptional and not expected to be sustained.

• Cash flow for Q2 was -SEK 4.7 million, impacted by a one-time royalty payment of SEK 13.5 million; normalized cash flow was SEK 8.8 million, and H1 cash flow was positive at 9.4 MSEK.

• Cash position at quarter-end was SEK 142.4 million, supporting ongoing business and investments.

• Personnel costs increased 32% year-over-year, driven by higher activity, bonuses linked to sales growth, and increased headcount to 94.

Outlook and guidance

• Investments in organization and automation are ongoing to support future growth and scalability.

• Gross margin expected to normalize to around 65% in coming quarters as the share of proton orders decreases.

• Confident in market opportunities and well positioned to capitalize on demand for advanced radiotherapy solutions.

• Closely monitoring geopolitical instability and inflation for potential business impact.

• Continuous, cautious increase in headcount and operational capacity anticipated over several quarters.