Profound(US:PROF)2025-05-08 21:30Financial Data and Key Metrics Changes - For Q1 2025, the company recorded revenue of $2.6 million, an increase of 82% from $1.4 million in Q1 2024 [7] - Gross margin improved to 71% in Q1 2025 from 60% in Q1 2024 [7] - Total operating expenses rose to $13 million in Q1 2025 from $8.7 million in Q1 2024 [7] - The net loss for Q1 2025 was $10.7 million, or $0.36 per share, compared to a net loss of $6.6 million, or $0.27 per share, in Q1 2024 [8] Business Line Data and Key Metrics Changes - Recurring revenue accounted for $1.8 million, while one-time sales of capital equipment contributed $820,000 to total revenue in Q1 2025 [7] Market Data and Key Metrics Changes - The TULSA PRO had a strong presence at medical meetings, including the American Urological Association meeting, where initial data from the CAPTAIN trial was presented [9][10] - The CAPTAIN trial is the first successful randomized controlled trial comparing TULSA technology to robotic radical prostatectomy, highlighting TULSA's advantages [10][11] Company Strategy and Development Direction - The company is focusing on expanding the TULSA technology's adoption through clinical data and patient satisfaction, which is expected to drive demand [15][27] - The introduction of the TULSA AI volume reduction module aims to enhance efficiency and expand the total addressable market for BPH treatments [17][18] - The TULSA Plus program is designed to provide a comprehensive solution for urologists, facilitating the adoption of TULSA technology [20][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing pipeline and the impact of Medicare reimbursement on patient engagement and revenue [58] - The transition to a capital model in 2025 is expected to lead to back-end loaded revenue growth, with a focus on building relationships with top cancer centers [49][66] Other Important Information - The company is leveraging AI technology to improve treatment efficiency and patient outcomes, which is expected to enhance market competitiveness [17][27] - The TULSA PRO is positioned as a key player in the interventional MRI space, with a focus on urology and prostate disease treatment [20][25] Q&A Session Summary Question: Feedback on CAPTAIN data post-AUA conference - Management received positive feedback from teaching hospitals and physicians, indicating that the data will help drive adoption and guideline development [33][35] Question: Plans for presenting CAPTAIN data to commercial insurers - Conversations with insurers have begun, and there is optimism about obtaining policies for TULSA treatments as awareness of Medicare reimbursement grows [36][37] Question: Activity at the AUA booth - The booth activity was highly successful, with significant interest from physicians and positive feedback on the volume reduction module [39][40] Question: Guidance for the year and revenue growth expectations - Management remains confident in achieving 70% to 75% revenue growth compared to 2024, despite a back-end loaded revenue model [45][49] Question: Sales force readiness and resources - The company has established a comprehensive sales team and is making progress in training and market development [52][53] Question: Engagement with Medicare and Medicaid patients - Initial revenue impacts from Medicare reimbursement were limited, but there is growing confidence in the pipeline and patient engagement as billing and payments begin to materialize [58] Question: Marketing plans and materials - The company is ramping up digital marketing efforts and plans to utilize satisfied patients, including ex-NFL players, to promote TULSA [60][62] Question: Timing for TULSA Plus availability and economic model - The TULSA Plus model is expected to be compatible by the end of Q3 2025, with ongoing discussions about economic benefits from partnerships with MRI manufacturers [79][81]