Release Date: March 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hyperfine Inc (HYPR, Financial) achieved a 17% year-over-year revenue growth in 2024, reaching $12.9 million.
- The company successfully expanded its gross margins by 300 basis points over 2023, achieving a full-year gross margin of 46%.
- Hyperfine Inc (HYPR) reduced its cash burn by 9% in 2024, with a net cash burn of $38.4 million, and extended its cash runway to the end of 2026 through a $6 million direct offering.
- The company plans to launch two new AI-powered software releases in 2025, which are expected to significantly improve image quality and accelerate market adoption.
- Hyperfine Inc (HYPR) is expanding its market presence by targeting neurology offices and international markets, with a total addressable market exceeding $6 billion in the US alone.
Negative Points
- Revenue for the fourth quarter of 2024 decreased to $2.3 million from $2.7 million in the same period of 2023, due to longer deal cycles and lower average selling prices.
- The company experienced uneven sales productivity across US regions, leading to a replacement of 50% of underperforming sales regions.
- Hyperfine Inc (HYPR) reported a net loss of $40.7 million for the full year 2024, although this was an improvement from the previous year's loss.
- The purchasing cycle for US hospitals has become more protracted and complex, impacting sales timelines.
- There is uncertainty related to funding for deals supported by grant funds, which could affect revenue projections.
Q & A Highlights
Q: Can you provide additional details on the partnership with NVIDIA and any potential R&D products in the works?
A: Maria Sainz, President and CEO, stated that the initiative is related to future technology, and there are no further comments at this stage beyond what was released in the morning announcement.
Q: How are you approaching capital trends in 2025, especially with potential recessionary headwinds?
A: Maria Sainz explained that the office and hospital businesses are considered separately. The hospital capital allocation process is more complex and protracted, but the office setting involves fewer decision-makers and is more about financial and clinical sense. The company is focusing on economic and clinical benefits in their selling process.
Q: How should we think about contributions from the US versus international markets, and the durability of ASPs in 2025?
A: Maria Sainz noted that ASPs have been increased in markets where they sell directly, primarily the US. The mix between US and international sales creates variability in ASPs. Brett Hale added that pricing will be between historical anchors, with a focus on gross margin expansion.
Q: Can you provide insights into the expansion efforts into neurology offices and any feedback from customers?
A: Maria Sainz mentioned that they have been in pilot mode with a few offices, working through accreditation and reimbursement processes. The NEURO PMR study is being conducted to validate use cases in the office setting. The process has been seamless, and decision-makers in offices can reach decisions quickly.
Q: What is the outlook for the first half of 2025, and how do you view the second half ramp?
A: Brett Hale stated that the first half guidance is approximately $6 million, with significant growth expected in the second half due to market expansions, office and international growth, and technology releases. Maria Sainz added that they are not providing a specific quarter split but expect a stronger second half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
