RaySearch Laboratories (RAY) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales of SEK 319 million in Q2 2024, up 33% year-over-year, with operating profit reaching SEK 79.3 million and a 25% margin, driven by increased license revenue and improved margins.

• Order intake for the quarter was SEK 290 million, a 21% increase from last year, and cash flow from operations more than doubled to SEK 155 million.

• Maintains a strong cash position of SEK 435 million, no loans, and a robust order backlog of SEK 1.8 billion.

• Notable customer wins and product milestones, including expanded use at New York Proton Center and first clinical use of OXRAY.

• Continued investment in AI, product innovation, and partnerships, with major implementations underway.

Financial highlights

• Net sales for Q2 2024 were SEK 319 million, up 33% from SEK 239 million in Q2 2023; operating profit improved to SEK 79.3 million (25% margin) from SEK 18 million (8% margin) year-over-year.

• License revenue was SEK 164 million, including SEK 37 million from MedAustron; support revenue increased 13% to SEK 150 million.

• H1 2024 net sales: SEK 576 million (up 23%); operating profit: SEK 125 million (up from SEK 42 million); profit after tax: SEK 98 million.

• Earnings per share Q2: SEK 1.79 (up from SEK 0.32); H1: SEK 2.86 (up from SEK 0.83).

• Cash flow from operations improved to SEK 155 million from SEK 67 million in Q2 2023.

Outlook and guidance

• Confident in continued growth opportunities and maintaining strong financial position, supported by a robust order backlog and growing support revenue.

• Targeting an operating margin of at least 20% by 2026, with current performance indicating potential to exceed this.

• Backlog of SEK 1.8 billion, with SEK 507 million expected to convert to revenue in the next 12 months.