Release Date: June 27, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 15.9% year-over-year to $3.2 million for the fourth quarter and by 25% to $12.06 million for the fiscal year.
- Gross profit for the quarter totaled $2.3 million, up 48% from $1.5 million in the prior year period.
- Strategic partnerships with Amazon AWS and Google's TensorFlow have expanded the cardiac AI cloud platform, enhancing diagnostic accuracy and patient outcomes.
- Health Canada approval for the Biocore device opens new revenue avenues in the $1.56 billion Canadian cardiology devices market.
- Operating expenses for the fiscal year decreased from $20.9 million to $17.2 million, reflecting effective cost management.
Negative Points
- Net loss attributable to common stockholders for the fiscal year was $14.9 million, though improved from $19.5 million in the prior fiscal year.
- Operating expenses for the fourth quarter increased to $5.3 million from $5 million in the same period last year.
- Despite revenue growth, the company is still not EBITDA positive, although it is on a path toward breakeven.
- The expansion into new markets like Canada may initially impact margins due to heavier device sales.
- The company faces risks and uncertainties related to the commercialization of new products and market adoption.
Q & A Highlights
Q: Can you discuss more about expanding into pulmonary and neurology fields and how this plays into your current product lineup?
A: We have seen referrals from pulmonologists and neurologists, indicating a higher risk for cardiac issues among their patients. We partnered with organizations providing sleep diagnostics and home-based neurological tests to deliver cardiac diagnostics through them. This combination allows us to test the market and deploy these diagnostics simultaneously. Our goal is to integrate these technologies into our ecosystem without developing new technology in those spaces.
Q: Can you provide a recap on the pilot studies you have ongoing right now?
A: We currently have two active pilot studies and a growing pipeline, especially since joining the GPOs. These multi-site pilots take a few months to complete but present significant opportunities for the company.
Q: How do your GPO partnerships help with expansion into new markets like Canada?
A: GPOs are primarily US-focused and do not significantly support the Canadian market. In Canada, we focus on building a distributor network due to the different payer model. We aim to establish anchor sites and distribution relationships to showcase our products.
Q: Do you expect similar margins in the Canadian market, and are you still seeing north of 70% gross margin in the US market?
A: Margins may vary slightly due to device sales, but our recurring revenue continues to grow, improving margins. We expect our subscription margin to trend into the mid-70% and upper 70% range, with some fluctuations due to hardware sales.
Q: Can you elaborate on the strategic initiatives and their impact on your financial performance?
A: Our strategic initiatives, including partnerships with GPOs and the launch of new products like Biocore Pro, have significantly improved our revenue and margins. We have also reduced operating expenses and are on track to achieve EBITDA breakeven later this year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
