Perimeter Medical Imaging AI (PINK) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $246,000, up 83% year-over-year, driven by consumables, system leases, and higher S-Series OCT placements, with new service contracts signed for preventive maintenance worth $139,000 to be recognized over three years.

• Net loss improved 35% year-over-year to $3.2 million ($0.05 per share) from $4.9 million ($0.08 per share) in Q2 2023.

• Cash and cash equivalents stood at $6.5 million at quarter-end, excluding a $1.8 million grant receivable.

• Commercial adoption of S-Series OCT accelerated, with 12 systems installed and earning revenue, including 4 new installations in Q2 and six new placements year-to-date, doubling 2023's total.

• Achieved the milestone of 1,000 paid patient scans post-quarter, with clinical evidence showing significant reduction in reoperation rates.

Financial highlights

• Q2 2024 revenue grew 83% year-over-year and 150% sequentially from Q1 2024, driven by higher system utilization and placements.

• Operating expenses were $5.5 million, up from $3.4 million in Q2 2023, mainly due to increased compensation, R&D, and subcontractor costs.

• Cash used in operating activities was $7.5 million, flat compared to $7.2 million in Q2 2023.

Outlook and guidance

• Strong sales pipeline expected to sustain growth rates through Q3 and Q4, with expansion into new facilities and states.

• Pivotal trial for B-Series OCT with ImgAssist AI is ahead of schedule, with patient enrollment expected to complete in Q3 2024 and top-line data anticipated in Q4 2024.

• FDA submission for B-Series OCT planned for early Q1 2025, with potential approval by late 2025 or early 2026.

• All installed S-Series OCT systems are expected to be upgraded with ImgClear AI by year-end.

• Company will need to raise additional funds before early next year; management is actively focused on this.