Redsense Medical (REDS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were KSEK 5,030, with the US accounting for 99% of sales, and gross margin at 58%.

• EBIT loss widened to KSEK -3,273 in Q3 2024 from -959 in Q3 2023; net loss after tax was KSEK -3,271.

• Cash position strengthened to KSEK 16,068 as of September 30, 2024, following a directed share issue.

• Significant management changes occurred, including a new CEO and board reshuffling.

• The company will cease trading on the OTCQX platform in the US after December 2024.

Financial highlights

• Net sales for Q3 2024 were KSEK 5,030, down 5% year-over-year; nine-month sales were KSEK 15,490, down 9%.

• Gross profit for Q3 2024 was KSEK 2,921, with a gross margin of 58%.

• EBIT for Q3 2024 was KSEK -3,273; earnings per share were SEK -1.99.

• Cash flow from operating activities for Q3 2024 was KSEK 464.

• Solidity improved to 88% as of September 30, 2024.

Outlook and guidance

• Q4 2024 net sales to date exceed SEK 6M, with another replenishment order expected in December, supporting a strong Q4 and year-end.

• First sales of the Redsense Clamp are anticipated in Q1 2025, pending regulatory approval.

• Focus remains on operational improvements, expanding into new markets, and reinforcing presence in established ones.