Photocure (PHO) Q3 2024 earnings summary

Executive summary

• Achieved 12% year-over-year revenue growth in Q3 2024, with positive EBITDA and strong execution in both U.S. and European markets, driven by new installations, upgrades, and mobile solutions.

• Strategic partnerships, including with Richard Wolf GmbH, are advancing next-generation flexible blue light cystoscopy and expanding global access.

• Regulatory milestones include early approval of Hexvix in China, ongoing reviews for Cevira in China and the EU, and progress on U.S. reclassification.

• Saphira tower installations in the U.S. reached 12 in Q3, with 48% of the rigid installed base now upgraded.

• Cash balance at quarter-end was NOK 291 million, with no term debt.

Financial highlights

• Q3 2024 revenue was NOK 120.2 million, up 12% year-over-year, with gross profit of NOK 112.4 million and gross margin at 93–94%.

• EBITDA for Q3 was NOK 5.0 million (NOK 6.3 million excluding business development expenses), up from NOK 3.3 million last year.

• Net loss for Q3 narrowed to NOK -3.5 million from NOK -4.8 million in Q3 2023.

• Cash flow from operations was NOK 34.5 million, with net cash flow NOK 24.1 million.

• Operating expenses (excluding business development) were NOK 106–107.3 million, up 10% year-over-year.

Outlook and guidance

• 2024 guidance reiterated: 6–9% product revenue growth in constant currency, positive EBITDA (excluding business development), and 55–70 U.S. Saphira tower placements.

• Focus on expanding Hexvix/Cysview usage, increasing kit throughput, and supporting new product launches in the U.S. and Europe.

• Anticipate significant milestone payments from regulatory approvals in China and the EU for Hexvix and Cevira.

• Continued support for U.S. FDA reclassification of BLC equipment to facilitate market expansion.

• Advancing partnership with Richard Wolf for next-generation flexible BLC system.