RaySearch Laboratories (RAY) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached SEK 293.3 million, up 16% year-over-year, marking the ninth consecutive record quarter, with operating profit at SEK 61.8 million and a 21.1% margin.

• Order intake for Q3 was SEK 253.4 million; total order backlog stood at SEK 1,723 million.

• Cash and equivalents were SEK 425 million with no loans, highlighting a strong financial position.

• Board raised the operating margin target for 2026 to at least 25% due to strong performance.

• RayCare achieved its first clinical use with Varian TrueBeam, expanding its market potential.

Financial highlights

• Q3 net sales: SEK 293.3 million, up 16%; license sales rose 36% to SEK 133 million; support revenue up 12% to SEK 120 million.

• Q3 operating profit: SEK 61.8 million; nine-month operating profit: SEK 186.9 million.

• Cash flow from operations in Q3 was SEK 60.5 million, down from SEK 124.4 million last year; nine-month cash flow: SEK 382.3 million.

• Equity/assets ratio at period end: 40.2%.

• Profit after tax for Q3: SEK 45.4 million; EPS SEK 1.32.

Outlook and guidance

• Operating margin target for 2026 raised from at least 20% to at least 25%.

• RayCare expected to contribute significantly to revenue in 2025 and 2026; strong sales growth anticipated.

• Backlog at period end was SEK 1.7 billion, with SEK 471 million expected as net sales in the next 12 months.

• Management sees favorable opportunities for continued growth, supported by strong sales and order intake.