SANUWAVE Health Inc(US:SNWV)2025-05-09 13:32Financial Data and Key Metrics Changes - Q1 2025 revenue totaled $9,300,000, representing a 61% increase compared to $5,800,000 in Q1 2024, exceeding previous guidance of 45% to 55% growth [14][17] - Gross margin improved to 79% in Q1 2025 from 72.6% in Q1 2024, an increase of over 640 basis points attributed to reduced production costs and strategic pricing [15] - Operating income for Q1 2025 was $1,000,000, an improvement of $2,000,000 year-over-year [15] - Net loss for Q1 2025 was $5,700,000, compared to a net loss of $4,500,000 in Q1 2024, primarily due to higher non-cash expenses [16] - Adjusted EBITDA for Q1 2025 was positive $2,300,000, an improvement of $2,400,000 year-over-year [16] Business Line Data and Key Metrics Changes - The company placed 98 new Ultomis systems in Q1 2025, a 128% increase from 43 systems in Q1 2024 [7] - Applicator sales were $5,800,000 in Q1 2025, up from $4,100,000 in Q1 2024, constituting 62% of total revenues [8][9] - The company ended the quarter with 1,145 systems in the field, with 429 placed in the trailing twelve months [7] Market Data and Key Metrics Changes - The company is experiencing a seasonal pattern where patients delay treatment in Q1 due to out-of-pocket maximum resets, leading to reduced usage until Q2 [9] - The company is focusing on engaging larger customers and has been building inventory to support this strategy [10][11] Company Strategy and Development Direction - The company aims to continue its growth strategy with a guidance of $10,000,000 to $10,700,000 in Q2 revenues, reflecting 40% to 50% year-on-year growth [18] - The sales strategy focuses on engaging larger customers and expanding into mobile and home healthcare markets [44][46] - The company is exploring refinancing opportunities to improve its debt situation [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supply chain and manufacturing capabilities, stating no anticipated material cost or margin issues from current economic conditions [11] - The company is optimistic about building on the momentum from Q1 and executing its growth strategy [17] Other Important Information - The company incurred a $295,000 listing fee for its NASDAQ uplift, impacting operating profit and EBITDA figures [12] - The company has been stockpiling longer lead-time components to enable rapid production ramp-up if needed [10] Q&A Session Summary Question: Can you quantify system placements from smaller and larger customers? - Management noted the complexity in categorizing customers, stating 58 new customers were added in Q1, with growth potential varying among them [24] Question: What is the typical time to sale from initiation to purchase order? - Management indicated a wide range, from a couple of days for smaller orders to several months for larger customers [28] Question: Can you address the debt landscape? - Management acknowledged the high cost of debt and mentioned exploring refinancing opportunities [33] Question: What is the success rate within the total addressable market? - Management stated they do not have clear visibility into specific treatments due to HIPAA regulations but are in contact with providers to understand applications [36] Question: Any updates on patent assertion suits? - Management confirmed an intellectual property assertion agreement with an outside firm, expressing satisfaction with progress but noting the private nature of the process [39] Question: Insight into the evolving sales strategy? - Management highlighted a focus on engaging larger customers and the importance of experienced sales executives in the strategy [44]