Profound Medical (PROF) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $2.23 million, up 39% year-over-year, with $1.46 million from recurring revenue and $773,000 from capital equipment sales.

• Net loss for Q2 2024 was $6.9 million ($0.28 per share), an improvement from $7.3 million ($0.35 per share) in Q2 2023.

• Cash position as of June 30, 2024, was $34.1 million.

• Installed base of TULSA-PRO systems grew from 53 to 57 sequentially, with a target of 75 systems by year-end 2024.

• FDA cleared the second TULSA-AI module in May 2024; CMS proposed reimbursement rule for TULSA procedure expected to be finalized in November 2024.

Financial highlights

• Gross margin in Q2 2024 was 64–64.5%, slightly down from 66% in Q2 2023.

• Operating expenses rose 24% year-over-year to $9.3 million, driven by higher R&D and sales/distribution costs.

• Net finance income was $934,000, compared to a net finance expense of $884,000 in Q2 2023.

• Gross profit for Q2 2024 was $1.44 million, up from $1.05 million in Q2 2023.

• Operating loss for Q2 2024 was $7.83 million, up from $6.44 million in Q2 2023.

Outlook and guidance

• Full-year 2024 revenue is expected to be $11–12 million, representing 53%–67% year-over-year growth.

• Gross margin is anticipated to be at or above 60% for 2024.

• The company reaffirms its goal to grow the TULSA-PRO install base to 75 systems by year-end.

• CMS reimbursement rule for TULSA procedure anticipated to take effect January 1, 2025.

• Enrollment for the CAPTAIN study is on track to complete in 2024, with interim data expected in H1 2025.