Atomo Diagnostics (AT1) H2 2024 earnings summary

Executive summary

• Achieved a 90% year-over-year increase in core business revenue, driven by HIV self-test and OEM cassette sales, with significant expansion in pharmacy retail channels in the UK, Germany, and Australia, and plans for New Zealand entry.

• Operating expenses reduced by over 30% year-over-year, with EBITDA losses nearly halved to $4.38m.

• The company remains debt-free with a cash balance of $3.69m as of June 30, 2024.

• Technology validated by clinicians and regulators, showing transformative reduction in user errors and high user preference.

• Ongoing focus on expanding HIV sales, OEM supply, and development of custom solutions.

Financial highlights

• FY 2024 revenue nearly doubled year-on-year to over AUD 4 million, with normalized revenue up 90% after excluding non-core COVID-19 sales.

• Gross margin improved to 39% from 37% year-on-year, driven by higher-margin HIV business in developed markets.

• Underlying EBITDA loss reduced by 46% to $4.38m.

• Operating expenses reduced by AUD 1.6 million in FY 2024, totaling a 30% reduction over two years.

• Cash receipts totaled $6.8m, including $4m from product sales and $761k from R&D tax rebate.

Outlook and guidance

• Focus on supporting US market entry, especially for OEM partner Lumos and Atomo's own products, with near-term goals including CLIA and OTC channel access.

• Plans to expand OEM customer base and pursue product approvals for HIV and syphilis tests in the US.

• Medium/long-term plans focus on growing development fee services revenue and adapting technology for molecular and microfluidic diagnostics.