Workflow
Nano-X Imaging (NNOX) - 2024 Q3 - Earnings Call Transcript
NNOXNano-X Imaging (NNOX)2024-11-21 16:47
Filings

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of 13.6millionforQ32024,adecreasefromanetlossof13.6 million for Q3 2024, a decrease from a net loss of 21.4 million in Q3 2023, primarily due to a reduction in impairment-related expenses [48] - Revenue for Q3 2024 was 3.0million,comparedto3.0 million, compared to 2.5 million in the same period last year, with a gross loss of 2.8milliononaGAAPbasis[49]−Non−GAAPgrosslossforthereportedperiodwas2.8 million on a GAAP basis [49] - Non-GAAP gross loss for the reported period was 0.2 million, compared to a non-GAAP gross profit of 0.9millioninthecomparableperiod,indicatingasignificantshiftinprofitabilitymetrics[50]BusinessLineDataandKeyMetricsChanges−Revenuefromteleradiologyservicesreachedarecord0.9 million in the comparable period, indicating a significant shift in profitability metrics [50] Business Line Data and Key Metrics Changes - Revenue from teleradiology services reached a record 2.6 million in Q3 2024, with a gross profit margin of approximately 15% on a GAAP basis, up from 2.2millionand112.2 million and 11% in Q3 2023 [51][52] - Revenue from AI solutions increased to 0.4 million in Q3 2024 from 0.1millioninthesameperiodlastyear,attributedtothecompletionofinstallationprojects[54]−Revenuefromimagingsystemssaleswasminimalat0.1 million in the same period last year, attributed to the completion of installation projects [54] - Revenue from imaging systems sales was minimal at 29,000, with a gross loss of 1.5million,reflectingongoingchallengesinthissegment[55]MarketDataandKeyMetricsChanges−Thecompanyhasdeployed47Nanox.ARCunitsacrosstheU.S.,withafocusonsmallandmediumimagingcenters,aswellassomehospitalsandclinics[68]−Thecompanyisactivelypursuingregulatoryapprovalsinvariousinternationalmarkets,includingMexicoandChile,toexpanditsfootprint[21][80]CompanyStrategyandDevelopmentDirection−Thestrategicgrowthplanincludesdoublingthepipelineandexpandingsales,service,andsupportteamsintheU.S.toenhancemarketpenetration[8][15]−ThecompanyaimstosecureCEMarkdesignationintheEUandisworkingcloselywiththeFDAforadditionalclearances,whichareexpectedtosignificantlyexpandthetotaladdressablemarket[24][62]−Thefocusoninnovationandstrategicpartnershipsisexpectedtodriveshareholdervalue,withrecentcollaborationswithprestigiousinstitutionslikeOxfordUniversityHospitals[10][33]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementexpressedconfidenceinthetransformativepotentialofNanox.ARCtechnologyanditsabilitytomakeadvancedmedicalimagingaccessibleandaffordable[13][62]−Positivefeedbackfromhealthcareprovidersandongoingclinicaltrialsareseenascriticaltodrivingbroaderadoptionofthecompany′ssolutions[63]−Thecompanyispreparingforsignificantmilestonesin2025,includingregulatoryapprovalsandproductlaunches,whichareanticipatedtoenhancerevenuegrowth[95]OtherImportantInformation−Thecompanyhasacashpositionofapproximately1.5 million, reflecting ongoing challenges in this segment [55] Market Data and Key Metrics Changes - The company has deployed 47 Nanox.ARC units across the U.S., with a focus on small and medium imaging centers, as well as some hospitals and clinics [68] - The company is actively pursuing regulatory approvals in various international markets, including Mexico and Chile, to expand its footprint [21][80] Company Strategy and Development Direction - The strategic growth plan includes doubling the pipeline and expanding sales, service, and support teams in the U.S. to enhance market penetration [8][15] - The company aims to secure CE Mark designation in the EU and is working closely with the FDA for additional clearances, which are expected to significantly expand the total addressable market [24][62] - The focus on innovation and strategic partnerships is expected to drive shareholder value, with recent collaborations with prestigious institutions like Oxford University Hospitals [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of Nanox.ARC technology and its ability to make advanced medical imaging accessible and affordable [13][62] - Positive feedback from healthcare providers and ongoing clinical trials are seen as critical to driving broader adoption of the company's solutions [63] - The company is preparing for significant milestones in 2025, including regulatory approvals and product launches, which are anticipated to enhance revenue growth [95] Other Important Information - The company has a cash position of approximately 57.1 million as of September 30, 2024, with a loan of $3.4 million from a bank [59] - The Nanox.AI solution has been recognized in Time's Best Inventions of 2024, highlighting its impact on the healthcare industry [11] Q&A Session Summary Question: How many systems were deployed in the U.S. during the quarter? - The company deployed a total of 47 systems, primarily in small and medium imaging centers, with some in hospitals and clinics [68] Question: How has average utilization trended for ARC? - Average utilization remains around seven scans per day in operating locations [69] Question: Any updates on FDA conversations and ARC-X? - Conversations with the FDA are positive, and the company plans to submit for ARC-X approval early next year [70][71] Question: What are the plans for Europe post-CE Mark? - The company plans to utilize distributors for sales in Europe, with a go-to-market strategy already in place [76][78] Question: What about regulatory efforts in LATAM? - Regulatory approvals in Mexico and Chile are being pursued by distributors, with ongoing communication to facilitate the process [80] Question: When should we expect an inflection point in revenue? - The company anticipates multiple milestones that could serve as inflection points, including regulatory approvals and product launches [94][95]