iCAD (ICAD, Financial) has formed a partnership with Microsoft to integrate AI-driven mammography solutions into iCAD's ProFound Breast Health Suite via Microsoft's Precision Imaging Network. This collaboration aims to offer patient access to automated mammography reporting through Microsoft's cutting-edge PowerScribe platform. By hosting iCAD’s ProFoundAIBreast Health Suite on Microsoft's expansive cloud network, the initiative seeks to equip radiologists and healthcare providers with advanced AI insights. This integration is designed to refine breast health detection, optimize clinical workflows, and potentially improve patient care outcomes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for icad Inc (ICAD, Financial) is $3.50 with a high estimate of $3.50 and a low estimate of $3.50. The average target implies an upside of 5.11% from the current price of $3.33. More detailed estimate data can be found on the icad Inc (ICAD) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, icad Inc's (ICAD, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for icad Inc (ICAD, Financial) in one year is $1.81, suggesting a downside of 45.65% from the current price of $3.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the icad Inc (ICAD) Summary page.
ICAD Key Business Developments
Release Date: March 19, 2025
- Revenue: Q4 2024 revenue of $5.4 million; full-year 2024 revenue of $19.6 million.
- Annual Recurring Revenue (ARR): Total ARR of $9.8 million at the end of Q4 2024, up from $8.8 million in Q4 2023.
- Product Revenue: Q4 2024 product revenue of $3.7 million, up 24% year-over-year.
- Service Revenue: Q4 2024 service revenue of $1.7 million, flat year-over-year.
- Gross Profit: Q4 2024 gross profit of $4.7 million, with a gross margin of 86%.
- Operating Expenses: Q4 2024 operating expenses of $5.5 million, a 10% increase year-over-year.
- Net Loss: Q4 2024 GAAP net loss from continuing operations of $0.9 million, or $0.03 per diluted share.
- Cash and Cash Equivalents: $17.2 million as of December 31, 2024.
- Net Cash Used for Operating Activities: $3.9 million for the full-year 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ICAD Inc (ICAD, Financial) reported strong revenue growth, with Q4 2024 revenue reaching $5.4 million, a 14% increase over the previous year.
- The company successfully transitioned to a SaaS-based model, with annual recurring revenue (ARR) growing by 11% year over year.
- ProFound Detection version 4.0 received FDA clearance, offering significant improvements in cancer detection and workflow efficiency.
- ICAD Inc (ICAD) expanded its global reach with new partnerships and distribution agreements in regions like South Africa, Portugal, and Jordan.
- The company closed a total of 106 deals in Q4, including 19 cloud deals, indicating strong market adoption of its cloud solutions.
Negative Points
- The transition to a SaaS model may cause short-term flattening in reported GAAP revenue due to the shift from upfront revenue recognition to recurring revenue.
- Operating expenses increased by 10% year over year, driven by investments in R&D and regulatory support.
- Gross profit margin declined from 91% in Q4 2023 to 86% in Q4 2024, partly due to amortization of the cloud product.
- The company reported a GAAP net loss from continuing operations of $0.9 million for Q4 2024, compared to a $0.5 million loss in the previous year.
- Cash and cash equivalents decreased from $21.7 million at the end of 2023 to $17.2 million at the end of 2024, reflecting cash used in operating activities.
