Paxman (PAX) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales of 63.4 MSEK in Q2 2024, up 24% year-over-year, with strong EBITDA margin and positive cash flow.

• Net result for Q2 was 9.8 MSEK, nearly doubling from 5.1 MSEK in Q2 2023; operating profit rose to 10.6 MSEK from 1.6 MSEK.

• Installed 313 scalp cooling systems in H1 2024, with an order book of 130 systems; recurring income increased to 33.4 MSEK.

• Insurance-based billing model in the US showed strong growth, with 561 cap kits provided in Q2 and 75% coverage rate.

• Secured a $2.7 million contract with the US Department of Veterans Affairs and received an Innovate UK Smart Award for R&D.

Financial highlights

• Net sales: 63.4 MSEK in Q2 2024 vs. 51.0 MSEK in Q2 2023 (+24%).

• EBITDA: 14.8 MSEK in Q2 2024 vs. 6.1 MSEK in Q2 2023; EBITDA margin 23.3%.

• Net profit: 9.8 MSEK in Q2 2024 vs. 5.1 MSEK in Q2 2023.

• Earnings per share: 0.52 SEK in Q2 2024 vs. 0.27 SEK in Q2 2023.

• Cash flow from operating activities: 12.2 MSEK in Q2 2024 vs. 9.4 MSEK in Q2 2023; cash on hand at period end: 33.4 MSEK.

Outlook and guidance

• Continued focus on sustainable growth, reimbursement activities, and direct markets.

• Ongoing investment in R&D, especially in CIPN prevention and new product development.

• Expectation of further expansion in recurring revenue streams and insurance-based billing adoption.