Mauna Kea Technologies (ALMKT) H1 2024 & Q3 2024 TU earnings summary

Executive summary

• Q3 2024 sales grew 24% year-over-year, driven by new system sales in the U.S. and Europe, and a 29% increase in consumables delivered.

• Official launch of CellTolerance® food intolerance platform and strengthened sales pipeline due to positive clinical results in pancreatic cysts and lung cancer.

• Reaffirmed guidance for 20% annual sales growth, excluding licensing revenues.

Financial highlights

• H1 2024 total revenue was €4.3m, down 43% year-over-year due to exceptional items in H1 2023 from the Tasly JV.

• H1 2024 net loss was €4.7m, compared to a profit of €2.8m in H1 2023.

• Q3 2024 total sales (excl. license) reached €1.2m, up 24% year-over-year; 9M 2024 sales (excl. license) were €4.1m, down 10% year-over-year.

• Gross margin on product sales declined to 66% in H1 2024 from 77% in H1 2023, mainly due to lower U.S. system sales and reduced CMS reimbursement rates.

• Cash and cash equivalents stood at €3.8m as of June 30, 2024, providing visibility through Q1 2025.

Outlook and guidance

• Targeting over 20% sales growth for 2024, excluding licensing revenues.

• Anticipates Q4 acceleration driven by U.S. pay-per-use activity, new system placements, and expansion of CellTolerance® in France.

• Further sales gains expected in the U.S. and Chinese joint venture.