Milestone Scientific (MLSS) Q3 2024 earnings summary

Executive summary

• Achieved 22% year-over-year revenue growth in Q3 2024, reaching $2.5 million, driven by strong dental division performance, higher international dental sales, and e-commerce expansion.

• International dental sales rose 57% year-over-year, with e-commerce transition in the U.S. boosting customer engagement and margins.

• Medical division advanced with Medicare Part B payment rate assignment for CompuFlo Epidural System, leading to adoption by key pain management clinics and regulatory/commercial milestones.

• CEO Arjan Haverhals announced retirement at year-end 2024, remaining on the board as director and consultant to support ongoing growth.

• Nine-month revenue declined to $6.6 million from $7.6 million year-over-year, mainly due to lower international and China sales.

Financial highlights

• Q3 2024 revenue was $2.5 million, up from $2.1 million in Q3 2023; gross profit was $1.8 million (73% margin), up from $1.5 million (73%).

• Operating loss for Q3 2024 was $1.5 million, a $38,000 improvement year-over-year; net loss was $1.46 million ($0.02/share) for both periods.

• Nine-month 2024 revenue was $6.6 million, down from $7.6 million in 2023; gross profit was $4.9 million (74% margin), up from $5.3 million (70%).

• Net loss for nine months 2024 was $2.7 million ($0.03/share), improved from $5 million ($0.07/share) in 2023, aided by $2 million from sale of NJ net operating losses.

• Cash and equivalents at September 30, 2024: $4.8 million; working capital: $6.9 million.

Outlook and guidance

• Focus remains on expanding Medicare reimbursement for CompuFlo, growing U.S. and international market penetration, and leveraging e-commerce for dental sales.

• Management forecasts current cash and liquidity are sufficient for at least 12 months from the filing date.

• Anticipates further international dental sales growth and aims to close the revenue gap for the full year.

• Ongoing pilots and demos with pain clinics expected to drive future medical segment sales.

• Focus on expanding dental and medical device revenues and reducing operating expenses.