Photocure (PHO) Q3 2024 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth in Q3 2024, with positive EBITDA for the sixth consecutive quarter and strong execution in both U.S. and European markets.

• Strategic partnerships and product launches, including collaborations with Richard Wolf and Olympus, are expected to drive future growth; Hexvix received regulatory approval in China.

• Saphira™ tower installations totaled 12 in Q3 (6 new, 6 upgrades), now representing 48% of the U.S. rigid installed base.

• Regulatory milestones achieved in China and ongoing submissions in Europe and the U.S. for key products, including Cevira NDA and Hexvix approval.

• Cash balance increased to NOK 291 million at quarter-end, with no term debt.

Financial highlights

• Q3 2024 revenue reached NOK 120.2 million, up 12% year-over-year, with gross profit of NOK 112.4 million and gross margin at 94%.

• EBITDA for Q3 was NOK 5.0 million (NOK 6.3 million excluding business development expenses); net loss narrowed to NOK -3.5 million.

• Cash flow from operations in Q3 was NOK 34.5 million, ending the quarter with a cash balance of NOK 291 million.

• Operating expenses (excluding business development) were NOK 106 million, up 10% year-over-year, mainly due to project timing and FX.

• Equity at quarter-end was NOK 500 million, representing 69% of total assets.

Outlook and guidance

• Reiterated 2024 guidance: 6–9% product revenue growth in constant currency, positive EBITDA (excluding business development), and 55–70 U.S. Saphira™ tower placements.

• Focus on expanding Hexvix/Cysview usage, entering new geographies, and supporting new product launches.

• Anticipate significant milestone payments from regulatory approvals in China and Europe, potentially doubling the cash balance.

• Continued support for U.S. FDA reclassification of BLC equipment to facilitate market expansion.

• Expect continued double-digit growth in priority European markets and further expansion of the ForTec mobile strategy in the U.S.