Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $5.4 million, an increase of $700,000 or 14% compared to Q4 2023 [25] - Full year 2024 revenue reached $19.6 million, up from $17.3 million in 2023 [25] - Annual recurring revenue (ARR) grew to $9.8 million at the end of Q4 2024, up from $8.8 million at the end of Q4 2023 [23] - GAAP net loss for Q4 2024 was $900,000 or $0.03 per diluted share, compared to a loss of $500,000 or $0.02 per diluted share in Q4 2023 [28] Business Line Data and Key Metrics Changes - Product revenue for Q4 2024 was $3.7 million, a 24% increase year-over-year [26] - Service revenue for Q4 2024 was $1.7 million, flat compared to the prior year [26] - Subscription ARR increased to $2.6 million at the end of Q4 2024, up from $1.7 million at the end of Q4 2023 [24] - Cloud ARR reached $800,000 at the end of Q4 2024, representing the first three quarters of recurring revenue from the cloud product [24] Market Data and Key Metrics Changes - In Q4 2024, the company closed 106 deals, including 54 perpetual, 33 subscription, and 19 cloud orders [10] - The transition to a SaaS model is expected to enhance financial predictability and market share [15][17] Company Strategy and Development Direction - The company is focused on expanding its SaaS footprint and driving innovation in AI solutions [9][17] - The launch of ProFound Detection version 4.0 is a key milestone in the company's long-term growth strategy [9] - The company aims to democratize access to early breast cancer detection and support health equity in mammography [19] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was characterized by the increasing adoption of AI in healthcare, with a significant opportunity for growth [6] - The transition to a SaaS model is expected to create a backlog of recurring high-margin revenue, leading to greater financial stability over time [17] - Management expressed confidence in the long-term benefits of the SaaS transition despite short-term headwinds to GAAP revenue and cash flow [21] Other Important Information - The company received FDA clearance for ProFound Detection version 4.0, which improves cancer detection and reduces false positives [8][9] - The company is expanding its partnerships to enhance its offerings and improve patient care [11][53] Q&A Session Summary Question: What is the outlook for the CapEx environment for hospitals and centers this year? - Management indicated that there is still some lumpiness in revenue and expects momentum in cloud adoption to continue in 2025 [33][34] Question: What feedback has been received on ProFound Detection version 4.0? - Management reported that the accuracy of version 4.0 is performing better in clinical practice than during FDA testing, leading to positive customer feedback [36] Question: How does the ARR dynamic look as the company exits Q4? - Management noted that there is typically a quarter lag for cloud implementations to go live, which affects ARR recognition [47] Question: Will operating expenses remain stable in the coming years? - Management indicated that operating expenses may not remain at current levels due to various initiatives planned for the future [57] Question: What impact is expected from the new partnerships? - Management stated that partnerships are driven by customer requests and are expected to enhance the overall patient care journey [52]