Sensus Healthcare, Inc. Q4 FY2024 earnings call

• Strong business momentum with expansion of customer base, refinement of product offering, and position as a leader in superficial radiotherapy.
• Major accomplishments include strong sales strategy execution, growth of fair deal agreement program, and R&D pipeline enhancements.
• Financial highlights: Q4 revenue $13.1M, full-year $41.8M (71% growth); 39 units shipped in Q4, 115 for the year; fifth consecutive quarter of profitability; $22.1M cash with no debt.
• Michael discussed fair deal agreement program flexibility, interest from corporate accounts, diversification into veterinary medicine, and preparation for TBI-510K resubmission.
• Javier provided detailed financials including Q4 and full-year revenues, gross profit, operating expenses, and balance sheet details.

For the fourth quarter, Sensus Healthcare recorded revenue of $13.1 million, with full-year revenue at $41.8 million, which is a 71% increase compared to 2023. In the fourth quarter, 39 units of the SRT-100 systems were shipped, a 18% increase from the prior year, and 115 units were shipped for the full year, a 74% increase. Gross profit for the fourth quarter was $7.1 million, or 54.4% of revenues, and for the full year, it was $24.4 million, or 58.6% of revenue. The company achieved its fifth consecutive quarter of profitability with net income of $1.4 million in the fourth quarter and $6.6 million for the full year. Cash and cash equivalents ended 2024 at $22.1 million with no debt.

• No formal 2025 financial guidance provided, but optimistic about growth from direct system sales and fair deal agreement pipeline.
• Anticipate first quarter 2025 sales could be considerably lower than Q1 2024 sales, but full year growth expected compared to 2024.

Q: Jeremy Pearlman asked about the number of units shipped in Q4 and the percentage of customers signing up for the fair deal agreement.

A: Javier Rampolla stated 39 units were shipped in Q4 with none being fair deal agreements. Joe Sardano mentioned customers and prospects deciding between purchasing and fair deal agreements, and Michael Sardano clarified that focus is on patient treatment rather than number of fair deal agreements signed.

Q: Arsalan Cameron asked about new competitors, new FDA sites, and large centers' preference for fair deal vs. traditional sales.

A: Michael Sardano said there are no new significant competitors, fair deal agreements target private equity-backed roll up groups, and installations are based on analytics to maximize revenues.

Q: Ben Hayner asked about private equity discussions, patient treated metrics, and G&A expenses.

A: Joe Sardano discussed private equity back roll ups and progress in rolling out products, Michael Sardano mentioned 50 paid units ready and timeline for installation and revenue collection, and Javier Rampolla said professional fees and compensation impacts on G&A were mostly one-time with expected slight increase in 2025.