Profound(PROF)2025-03-07 01:35Financial Data and Key Metrics Changes - For Q4 2024, the company recorded revenue of 2 million in Q4 2023 [9] - Gross margin in Q4 2024 was 71%, compared to 52% in Q4 2023 [9] - Total operating expenses in Q4 2024 were 9.8 million in Q4 2023 [10] - The net loss for Q4 2024 was 0.20 per share, a 45% improvement from a net loss of 0.42 per share, in Q4 2023 [10][11] - As of December 31, 2024, the company had cash of 2.7 million, while one-time capital equipment sales contributed $1.5 million [9] - The company transitioned from a placement model to a capital model, which is expected to enhance revenue streams [25][56] Market Data and Key Metrics Changes - The company is focusing on the top 50 cancer centers and regional hospitals for TULSA-PRO adoption [28] - The introduction of the BPH TULSA AI module is expected to triple the total addressable market from 200,000 cancer patients to 600,000 prostate disease patients annually [40] Company Strategy and Development Direction - The company aims to enhance awareness and adoption of TULSA-PRO through increased patient education and a robust sales team [37][42] - Plans to introduce TULSA Plus, a combined solution with Siemens interventional MRI, are set for the second half of 2025 [41] - The company anticipates high double-digit growth in 2025, with potential for triple-digit growth in 2026 and beyond [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the clinical value and economic model of TULSA, noting a positive response from hospitals regarding profitability [46][51] - The CAPTAIN trial is expected to provide significant data to support reimbursement and acceptance of TULSA as a treatment modality [38][71] Other Important Information - The company had 17 presentations featuring TULSA-PRO at major society meetings in Q4 2024 [12] - The CAPTAIN trial has randomized 201 patients as of January 2025, with 174 treated or scheduled for treatment [20] Q&A Session Summary Question: What gives confidence for robust growth acceleration in the post-Medicare reimbursement environment? - Management highlighted the clinical value of the product and the economic models showing profitability for hospitals, contributing to confidence in growth rates [46][51] Question: Update on the target of reaching 75 sites and the capital vs. recurring revenue model? - Management indicated that while the target of 75 sites may not be reached, the transition to a capital plus recurring model is yielding positive results [52][53] Question: Timing and regulatory clearances for the BPH product launch? - The BPH module is on track for a mid-year launch, with demo plans at AUA [63] Question: Uptake among Medicare payers and actual payments? - Management noted that actual payments from Medicare take time, but early data suggests positive trends in recurring revenue and satisfaction among users [66][68] Question: Strategy for pursuing specific insurance companies for reimbursement? - A specialized team is being developed to prioritize insurance companies based on payment history and regional install bases [71][72]