PMD Device Solutions (PMDS) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 reached KSEK 12,354, up 11.7% sequentially and 27% year-over-year, driven by the acquisition of Coala Life Inc and growth in recurring sensor sales.

• The company expanded its US presence through the acquisition of a remote patient monitoring (RPM) company, rebranded as Remote Care Connect, and accelerated its UK and German market activities.

• PMDS reaffirmed its target to achieve positive cash flow by year-end 2024 and raised its annual recurring revenue (ARR) target to SEK 260m by end of 2026.

Financial highlights

• Net sales: KSEK 12,354 in Q2 2024 (KSEK 11,059 in Q1 2024; KSEK 9,440 in Q2 2023).

• Gross margin: 77% in Q2 2024, down from 79% in Q1 2024 and 79.5% in Q2 2023.

• EBITDA: KSEK -8,002 in Q2 2024 (KSEK 1,589 in Q1 2024; KSEK -3,336 in Q2 2023), reflecting higher costs from the Coala Life acquisition.

• Net loss: KSEK -11,703 in Q2 2024 (KSEK -6,357 in Q1 2024; KSEK -6,751 in Q2 2023).

• Cash and cash equivalents: KSEK 1,248 at June 30, 2024, down from KSEK 2,856 at the start of the quarter.

Outlook and guidance

• Operations expected to be cash-flow positive by year-end 2024, supported by US business restructuring and growth in Europe.

• ARR target increased to SEK 260m by end of 2026; company expects >30% CAGR from 2023 to 2026.

• At least 10 pilots planned between Germany and the US by end of 2025.