KORU Medical Systems (KRMD) Q3 2024 earnings summary

Executive summary

• Achieved third consecutive quarter of double-digit revenue growth, with Q3 2024 net revenues up 17% year-over-year to $8.2 million, driven by growth in domestic, international, and novel therapies segments.

• Core business grew 11% year-over-year, outpacing the SCIg market and expanding into new geographies.

• Gross profit increased 19% year-over-year, with gross margin improving by 140 basis points to 63.4%.

• Raised full-year 2024 guidance for revenue, gross margin, and year-end cash balance.

• Presented data showing 97% nursing preference for FreedomEdge® system in oncology settings.

Financial highlights

• Q3 2024 revenue reached $8.2 million, a 17% increase year-over-year; year-to-date revenue was $24.8 million, up 16%.

• Gross margin for Q3 2024 was 63.4%, up from 62.0% in Q3 2023.

• Net loss for Q3 2024 was $1.6 million, or ($0.03) per diluted share; year-to-date net loss narrowed to $4.5 million from $6.3 million in 2023.

• Cash and cash equivalents at September 30, 2024, were $8.8 million, with year-to-date cash burn reduced by 60%.

• Adjusted EBITDA for Q3 2024 was ($0.4) million, an improvement from ($0.9) million in Q3 2023.

Outlook and guidance

• Full-year 2024 net revenue guidance raised to $32.75–$33.25 million, representing 15–17% growth year-over-year.

• Gross margin guidance increased to 62–63% for 2024.

• Year-end cash balance guidance raised to greater than $8.8 million.

• Cash flow breakeven expected in Q4 2024 and operational cash flow positivity in 2025.

• OPEX expected to finish slightly higher at $24.5–$25 million, exclusive of stock compensation.