Devyser Diagnostics (DVYSR) Q4 2024 earnings summary

Executive summary

• Achieved first profitable quarter as a public company in Q4 2024, with net sales for 2024 reaching SEK 216.9 million, up 28.1% year-over-year; Q4 sales rose 41.5% to SEK 64.2 million.

• Updated strategy focuses on clinical genetics and transplantation labs, aiming for leadership in both segments.

• Strengthened partnerships, notably with Thermo Fisher and Cyted, supporting commercial expansion and revenue growth.

• Gross margin for 2024 was 79.6% (down from 85.5%); Q4 margin rebounded to 84.4%.

• No dividend proposed for 2024.

Financial highlights

• Q4 2024 revenue reached SEK 64.2 million, up 41.5% year-over-year and sequentially from SEK 48.7 million in Q3.

• Full-year growth just below 30% target; Q4 marked the highest quarterly revenue to date.

• EBIT positive for the first time since listing, at SEK 0.7 million; adjusted EBIT would have been SEK 6.9 million excluding a provision for Italian payback.

• Q4 EBITDA was SEK 8.0 million; full-year EBITDA was SEK -30.6 million.

• Cash and cash equivalents at year-end were SEK 144.5 million.

Outlook and guidance

• Inventory buildup at Thermo Fisher in Q4 expected to impact early 2025 sales, with recovery anticipated as partner sales resume.

• Continued focus on profitability and stable cash flow in 2025, with no expectation of capitalized R&D doubling again year-over-year.

• Anticipates reimbursement for cfDNA transplantation assay in the U.S. in H2 2025, supporting further revenue growth.

• Strategic focus is shifting toward profitability, with targeted investments and refined product portfolio.

• Management expects continued growth, leveraging a strong product pipeline and efficiency improvements.