Devyser Diagnostics (DVYSR) Q4 2024 earnings summary

Executive summary

• Achieved first profitable quarter as a public company in Q4 2024, with record sales of SEK 64.2 million, up 41.5% year-over-year, and a focus on leveraging investments for continued profitability.

• EBIT turned positive at SEK 0.7 million in Q4 2024, compared to SEK -18.5 million in Q4 2023; full-year EBIT remained negative.

• Maintained a strong financial position with SEK 145 million in liquidity and no debt, supporting ongoing R&D and commercial initiatives.

• Updated strategy targets clinical genetics and transplantation labs, aiming for leadership in both segments.

• Largest-ever order from Thermo Fisher and extended Cyted agreement reflect strengthened partnerships and commercial expansion.

Financial highlights

• Q4 2024 revenue reached SEK 64.2 million, up 41.5% year-over-year; full-year sales were SEK 216.9 million, up 28.1%.

• Gross margin rebounded to nearly 85% in Q4, though full-year margin was just below 80% due to earlier facility expansion.

• EBIT positive for the first time since listing, at SEK 0.7 million in Q4; adjusted EBIT would have been SEK 6.9 million excluding Italian payback provision.

• Direct sales comprised about 65% of revenue in 2024, down from 77% in 2023, as distributor sales nearly doubled year-over-year.

• Ended year with SEK 145 million in cash and liquid assets.

Outlook and guidance

• Inventory buildup at Thermo Fisher in Q4 expected to impact early 2025 sales, with recovery anticipated as partner sales resume.

• Anticipates reimbursement for cfDNA transplantation assay in the U.S. by summer/H2 2025, supporting further revenue growth.

• Extended Cyted contract expected to more than double U.S. revenues in 2025.

• Continued focus on profitability, stable cash flow, and organizational efficiency in 2025.

• No expectation of capitalized R&D doubling again year-over-year.