PMD Device Solutions (PMDS) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked a transitional period with revenue and EBITDA impacted by sales reorganisation in Ireland and integration of Coala Life Inc.

• Strategic initiatives included a rights issue, US business reorganisation, and European operational restructuring to drive long-term growth.

• Focus remains on core product RespiraSense, with divestment of Coala Life Monitor to streamline resources.

• Operational efficiencies and growing adoption of RespiraSense are expected to support positive cash flow by end of 2024.

Financial highlights

• Net sales for Q3 2024 were KSEK 8,017, down 35.1% sequentially and 9% year-over-year.

• Gross margin decreased to 75.5% from 78.5% year-over-year and 77% sequentially.

• EBITDA loss widened to KSEK -8,898 from KSEK -8,002 in Q2 2024 and KSEK -3,864 in Q3 2023.

• Net loss for Q3 2024 was KSEK -11,838, compared to KSEK -7,872 in Q3 2023.

• Cash and cash equivalents at quarter-end were KSEK 970, down from KSEK 1,248 at the start of the quarter.

Outlook and guidance

• Targeting positive cash flow by end of 2024, supported by operational efficiencies starting January 2025.

• Ambitious ARR target of SEK 260M by 2026, with growth in Germany expected from late 2025 or early 2026.

• Forecasts compound annual growth rates above 30% from 2023 to 2026 and at least 10 pilots in Germany and the US by end of 2025.