KORU Medical Systems (KRMD) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $8.4 million, up 22% year-over-year, with strong growth in both core and novel therapies segments.

• Domestic core revenues grew 14.3% and international core revenues surged 45.8% year-over-year, driven by market expansion, new indications, and increased Ig supply.

• Progressed multiple novel therapy collaborations, including regulatory clearance for FreedomEdge in Japan, oncology biologic feasibility, and entry into a Phase III nephrology trial.

• Raised 2024 full-year revenue guidance to $32–$32.5 million and gross margin guidance to 61–62%, with cash flow break-even targeted for Q4.

• Net loss narrowed significantly, with improved cash usage and reaffirmed year-end cash balance above $8 million.

Financial highlights

• Q2 2024 net revenues were $8.4 million, up 21.5–22% year-over-year; domestic core up 14.3%, international core up 45.8–46%, novel therapies up 49.9–50%.

• Gross margin improved to 65.0% in Q2 2024, up 890 basis points year-over-year, marking the fourth consecutive quarter above 60%.

• Net loss reduced to $0.2–$1.0 million for the quarter, a significant improvement over the prior year.

• Adjusted EBITDA loss improved to $(0.4) million from $(2.3) million year-over-year.

• Cash and equivalents at $10.5 million as of June 30, 2024, with quarterly cash usage of $0.3 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $32.0–$32.5 million (12–14% growth); gross margin guidance raised to 61–62%.

• Year-end 2024 cash balance expected to exceed $8 million, with cash flow break-even targeted for Q4 2024.

• Guidance reflects normalization of international sales and continued margin pressure from lower ASP regions and inflation.

• Management expects cash on hand and operating cash flows to be sufficient for at least the next twelve months.