MDxHealth (MDXH) Q3 2024 earnings summary

Executive summary

• Achieved 21% year-over-year revenue growth in Q3 2024 to $23.3 million, with adjusted growth of 27% excluding prior year backlog effects.

• Nine-month revenue grew 29%, driven by expanded urology diagnostics menu and recent acquisitions.

• Raised 2024 revenue guidance to $87–$89 million, representing over 25% annual growth.

• Strengthened balance sheet with $40 million equity offering in September and $4.2 million from October overallotment.

• Expanded U.S. commercial footprint and field sales team to over 70, leveraging established reimbursement and guideline inclusion.

Financial highlights

• Q3 2024 revenue: $23.3 million (+21% year-over-year); nine months: $65.3 million (+29%).

• Gross profit for Q3: $14.3 million (+14%); gross margin declined to 61.2% from 64.9% due to product mix and prior-year backlog.

• Q3 operating loss: $6.1 million (+34%); net loss: $11.2 million (+11%).

• Cash and equivalents at quarter-end were $49.3 million, with a pro forma balance of $53.5 million after equity financing.

• Adjusted EPS for Q3: $(0.40); nine-month EPS: $(1.14), reflecting a 10% improvement year-over-year.

Outlook and guidance

• 2024 revenue guidance raised to $87–$89 million, reflecting confidence in continued adoption and utilization.

• Expecting adjusted EBITDA positivity in the first half of 2025, with no reliance on significant margin accretion.

• Projecting at least 20% annual revenue growth for the next several years.

• Focus on leveraging gross margin through expanded payer coverage and accretive acquisitions.

• Continued expansion of U.S. commercial footprint and menu utilization expected.