Profound(US:PROF)2025-11-13 22:30Financial Data and Key Metrics Changes - For Q3 2025, the company recorded revenue of $5.3 million, an increase of 87% from $2.8 million in Q3 2024 [4] - Gross margin improved to 74.3% in Q3 2025 from 63.1% in Q3 2024 [5] - The net loss for Q3 2025 was $8 million, or $0.26 per share, down from a net loss of $9.4 million, or $0.38 per share, in the same period last year [5] Business Line Data and Key Metrics Changes - Recurring revenue accounted for $4.1 million, while one-time sales of capital equipment contributed $1.2 million to total revenue [4] - The pilot launch of the new TULSA AI Volume Reduction Software has led to an increase in BPH procedures from Q2 to Q3 and into the first half of Q4 [11] Market Data and Key Metrics Changes - The company has established 70 TULSA-PRO sites, with a growing sales pipeline of 93 new systems in the final stages of the sales process [15] - The TULSA-PRO platform is seeing broader adoption across both academic and community hospitals due to increased awareness of its clinical benefits [15] Company Strategy and Development Direction - The company aims to achieve profitable growth by focusing on existing MR installations and targeting an install base of 200 TULSA-PRO sites [19][21] - Strategic partnerships are being built globally, including distribution agreements in Saudi Arabia and Australia [17] - The introduction of the TULSA AI Volume Reduction Software is expected to significantly enhance the efficiency of BPH treatments, potentially adding 400,000 patients to the annual total addressable market [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain growth, driven by the expanding interest in image-guided interventions and the flexibility of the TULSA system [16] - The company anticipates securing national or regional coverage decisions from commercial payers starting mid-next year, supported by ample clinical data [22] Other Important Information - The Kapton trial has been fully recruited, marking a significant milestone for the company, with data readouts expected to demonstrate TULSA's superiority over robotic surgery [13] - The company plans to file an S3 registration statement to keep financing options open as it moves forward with financial growth [6] Q&A Session Summary Question: Utilization trends in Q3 and Q4 - Management confirmed that the utilization trend has continued into Q4, driven by Medicare reimbursement and individual wins with private insurance [30][31] Question: Commercial payer rates compared to Medicare - Medicare rates are around $13,000, while commercial payer rates range from $25,000 to $65,000 per patient, indicating a significant contribution margin [35][36] Question: Expectations for fourth quarter revenue growth - Management remains comfortable with the 70% growth target for the year, supported by a strong pipeline and recent site closures [45] Question: Closing rates in the sales pipeline - The closing rate for the final stages of the pipeline is expected to be around 50%+, with potential increases as the sales team gains more experience [48] Question: Upcoming data reveals and their impact - The most impactful data reveals will likely be related to clinical efficacy and reimbursement coverage, which are crucial for driving adoption [54][56] Question: Renewed focus on Sonalleve technology - The renewed focus on Sonalleve is driven by recent market interest and the potential for MR-based treatments for various diseases, including uterine conditions and cancers [59][60]