iCAD(US:ICAD)2025-05-13 20:11Revenue and Financial Performance - Total Annual Recurring Revenue (TARR) reached $10.7 million, an increase of 18% year over year, supported by 19 new cloud deals[2] - Total revenue for Q1 2025 was $4.9 million, approximately flat compared to Q1 2024, with product revenue at $3.244 million (up 4.6%) and services revenue at $1.630 million (down 12.0%) [7][8] - Total revenue for the three months ended March 31, 2025, was $4,874,000, a decrease of 1.6% compared to $4,954,000 for the same period in 2024[29] - Gross profit for the three months ended March 31, 2025, was $4,189,000, compared to $4,113,000 for the same period in 2024, reflecting a slight increase[29] - Net loss for Q1 2025 was ($0.8) million, or ($0.03) per diluted share, compared to a net loss of ($1.2) million, or ($0.05) per diluted share, in Q1 2024[10] - Net loss for the three months ended March 31, 2025, was $833,000, an improvement from a net loss of $1,222,000 for the same period in 2024[29] - The Company reported a basic and diluted net loss per share of $0.03 for the three months ended March 31, 2025, compared to $0.05 for the same period in 2024[29] - Non-GAAP Adjusted Net Loss for Q1 2025 was ($0.5) million, or ($0.02) per diluted share, an improvement from ($1.2) million, or ($0.05) per diluted share, in Q1 2024[11] - Non-GAAP Adjusted Loss per share was $0.02 for the three months ended March 31, 2025, compared to $0.05 for the same period in 2024[44] - The Company reported a GAAP Net Loss of $833,000 for the three months ended March 31, 2025, compared to a loss of $1,222,000 for the same period in 2024[43] Operating Expenses and Profitability - Gross profit margin improved to 86% in Q1 2025, up from 83% in Q1 2024, reflecting higher-margin cloud revenues[2][10] - Operating expenses decreased by 4% to $5.3 million in Q1 2025, down from $5.6 million in Q1 2024[10] - Operating expenses for the three months ended March 31, 2025, were $5,318,000, a decrease from $5,554,000 for the same period in 2024[29] - Stock-based compensation expense was $602,000 for the three months ended March 31, 2025, which is excluded from ongoing operating results[41] - The Company believes that excluding certain expenses provides a clearer view of its core operations and performance[41] Cash and Liquidity - Cash and cash equivalents stood at $20.0 million as of March 31, 2025, providing sufficient resources for planned operations for at least the next 12 months[13] - Cash and cash equivalents increased to $20,032,000 as of March 31, 2025, from $17,206,000 at the beginning of the period[31] - Cash flow from operating activities for the three months ended March 31, 2025, was $60,000, compared to a cash outflow of $1,180,000 for the same period in 2024[31] - Proceeds from issuances of common stock, net of issuance costs, amounted to $2,335,000 during the three months ended March 31, 2025[31] Business Model and Strategic Developments - iCAD announced a transformational agreement to be acquired by RadNet, which is expected to enhance innovation and broaden access to AI-powered solutions across over 1,500 healthcare provider locations[3] - The company closed a total of 92 deals in Q1 2025, with 19 of those being ProFound Cloud deals[9] - The overall ARR has increased by 61% since the start of subscription sales[6] - Total Annual Recurring Revenue (T-ARR) is now being reported, reflecting the annualized value of subscription licenses, maintenance contracts, and active cloud services[40] - Subscription ARR (S-ARR) represents the annualized value of active subscription or term licenses at the end of the reporting period[42] - The Company is transitioning to a subscription-based business model, with ARR being a key metric for assessing progress[40] Assets and Liabilities - Total assets as of March 31, 2025, were $39,472,000, up from $37,540,000 as of December 31, 2024[27] - Total liabilities decreased to $8,684,000 as of March 31, 2025, compared to $8,856,000 as of December 31, 2024[27] Other Financial Metrics - Non-GAAP Adjusted EBITDA for the three months ended March 31, 2025, was $3,000, an improvement from a loss of $1,073,000 in the prior year[43] - The Company incurred acquisition-related expenses of $360,000 in the three months ended March 31, 2025[44] - Depreciation and amortization expenses were $170,000 for the three months ended March 31, 2025[43]