Photocure (PHO) Q2 2024 earnings summary

Executive summary

• Product revenue grew 6% year-over-year in Q2 2024, with positive EBITDA and a strengthened cash position; U.S. and European markets showed strong momentum, and Saphira tower placement guidance was raised to 55–70 units for 2024.

• EBITDA reached NOK 27.8 million (NOK 29.2 million excluding business development expense), up from NOK 23.4 million in Q2 2023; net profit for Q2 was NOK 12.3 million.

• Priority growth markets in Europe, especially the UK and Italy, delivered double-digit growth, with Germany showing strong upgrade-driven performance; European unit sales were level year-over-year, with H1 2024 up 4%.

• Strategic partnerships with ForTec and Richard Wolf aim to expand access and develop new flexible blue light cystoscopy systems, with a 24–30 month development period.

• Cash balance at quarter-end was NOK 267 million, with no term debt.

Financial highlights

• Q2 2024 total revenue reached NOK 145.4 million, with Hexvix/Cysview revenue at NOK 122.4 million and milestone/other revenue at NOK 23 million.

• Gross profit for Q2 was NOK 137.8 million, with a gross margin of 94%–95%.

• Net earnings for Q2 2024 were NOK 12.3 million, up from NOK 4.3 million in Q2 2023.

• Net cash flow from operations in Q2 was NOK 19.5 million; cash and equivalents at quarter-end were NOK 267 million.

• Operating expenses (excluding business development) were NOK 108.6 million; total operating expenses decreased 4% year-over-year to NOK 110 million.

Outlook and guidance

• 2024 guidance reiterated: product revenue growth of 6%–9% (constant currency) and positive EBITDA.

• Raised Saphira tower placement guidance to 55–70 units for 2024.

• Expects strong second-half performance in Europe, supported by Olympus launch and ongoing upgrades.

• Anticipates milestone payments in 2025 from Chinese regulatory approvals for Hexvix and Cevira; Asieris' NDAs under review in China, with further submissions planned in Europe and the U.S.

• Focus on increasing Hexvix/Cysview kit throughput and expanding BLC tower base in the U.S.