SANUWAVE Health Inc(US:SNWV)2024-08-13 13:30Financial Data and Key Metrics Changes - The company achieved record quarterly revenues of $7.2 million for Q2 2024, representing a 53% increase compared to $4.7 million in Q2 2023 [12] - Gross margin for Q2 2024 was 73%, slightly down from 74% in the same period last year [12] - Operating income improved to $2 million, an increase of $1.1 million year-on-year [12] - Net income for Q2 2024 was $6.6 million, a significant turnaround from a net loss of $7.3 million in Q2 2023 [12] - Adjusted EBITDA rose to $1.5 million from $171,000 in the same quarter last year [13] Business Line Data and Key Metrics Changes - Revenue from the Ultomir systems increased by 47% year-on-year, with 788 active systems in the field at the end of Q2 2024 [7] - Revenue from the Ultamist product line grew by 62% year-on-year [7] - Consumable applicators revenue surged by 67% year-on-year and 15% sequentially from Q1 2024 [7][8] Market Data and Key Metrics Changes - The company is focusing on building a robust pipeline of large and midsized customers in the wound care space, particularly in skilled nursing and long-term care [10] - The company has already sold more systems in Q3 2024 than in all of Q3 2023, indicating strong market traction [10] Company Strategy and Development Direction - The company aims for rapid profitable growth and has increased its revenue growth guidance for Q3 2024 to 65-75% year-on-year [6][7] - The termination of the merger with SEPA was deemed necessary as it no longer served the best interests of shareholders [14] - The company is simplifying its capital structure, including a planned reverse stock split to reduce share count and improve shareholder equity [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved fundamentals and the potential for a breakout year in 2024 [17] - The focus is on being valued for the business rather than the capital structure, with plans for increased outreach to investors once the stock price is more respectable [30] Other Important Information - The company paid off long-standing debt liabilities, adding over $8 million to stockholders' equity [12] - Operating expenses increased to $3.2 million in Q2 2024, but as a percentage of revenue, they dropped to 62% from 73% in Q2 2023 [12] Q&A Session Summary Question: Can we talk about actual numbers and acquisition units or new customers? - Management did not disclose exact average selling prices but mentioned that the list price for an Ultramist system is about $35,000, and they are capturing more of it than before [20][21] Question: How is the company generating more sales in the current environment? - Management indicated that improving the capital structure is essential for enhancing the company's valuation and attracting more investors [29][30]