Sensus Healthcare (SRTS) Q3 2024 earnings summary

Executive summary

• Revenues for Q3 2024 rose 127% year-over-year to $8.8 million, driven by strong SRT system sales and new sales models, with a major Fair Deal Agreement signed with Platinum Dermatology Partners covering 130 clinics.

• Net income for Q3 2024 was $1.2 million ($0.07 per diluted share), reversing a net loss of $1.5 million in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $1.6 million, a $3.3 million improvement year-over-year.

• The company is expanding domestically and internationally, with new placements in Israel, Asia, and the Middle East, and expects over 50 IG-SRT systems signed under the Fair Deal Agreement by year-end.

• Ended the quarter with $22.6 million in cash and no outstanding debt.

Financial highlights

• Q3 2024 revenues rose 127% year-over-year to $8.8 million, with 27 SRT systems shipped versus 11 last year.

• Gross profit for Q3 2024 was $5.2 million (59.3% margin), up from $2 million (51%) in Q3 2023; nine-month 2024 gross margin was 60.3%.

• Net income for the nine months ended September 30, 2024, was $5.1 million versus a $3.7 million loss in the prior year period.

• Adjusted EBITDA for the nine months was $6.7 million, compared to negative $5.4 million in 2023.

• Operating expenses for Q3 2024 were $3.7 million, flat year-over-year.

Outlook and guidance

• Recurring revenue from the Platinum Dermatology Fair Deal Agreement and similar deals is expected to begin in 2025, with significant volumes projected for H2 2025.

• Gross margin is expected to remain around 60% for Q4 2024.

• Management expects continued growth and demand, with liquidity and credit capacity sufficient for the next 12 months.

• Inflationary pressures are being monitored, with proactive inventory management to mitigate cost impacts.