ViroGates (VIRO) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 declined 11% year-over-year to DKK 2.276–2.3 million, mainly due to slow hospital onboarding and post-COVID-19 challenges, but general health and longevity segments showed early promise.

• Operating loss increased by 11% to DKK -7.9 million, and net loss rose by 16% to DKK -7.7 million year-over-year.

• Cash and cash equivalents stood at DKK 8.7 million at the end of H1 2024, slightly up from H1 2023.

• The company is investing in growth initiatives, including expanding its distributor network and targeting general health and longevity markets.

• Collaboration with Sobi advanced, including a Q-Submission and first meeting with the US FDA for suPARnostic approval.

Financial highlights

• Revenue declined 11% year-over-year, with TurbiLatex and Quick Triage accounting for most sales; ELISA sales remained stable and contributed to general health and longevity segments.

• Europe contributed 70% and North America 28% of total revenue in H1 2024.

• Recurring clinical routine customers decreased to 8, while research customers increased to 10 by H1 2024.

• Gross profit dropped 23% to DKK 1,671k, with gross margins on products ranging from 75% to 90%.

• Operating expenses increased by 3% to DKK -9.6 million year-over-year.

Outlook and guidance

• Management maintains full-year 2024 guidance: revenue DKK 4.5–6 million, EBIT DKK -14 to -15.5 million, with uncertainty due to small account transitions and market volatility.

• Focus remains on short-term revenue growth from longevity clinics and laboratories, with effects expected in H2 2024.

• No revenue expected from the US market in 2024; FDA regulatory process ongoing into 2025.