Press release: Stockholm, 22 August 2024. PMD Device Solutions AB’s (PMDS) interim report for April – June 2024 is now available on the company's website, www.pmd-solutions.com.
Financial information April – June 2024 (figures in brackets relate to the same period in Q2 2023)
- Consolidated net sales for the three months are in line with expectations at kSEK 12,354 and are 27% higher than in Q2 2023. Q2 2024 revenues are higher than Q1 2024 by 11% due to the acquisition of Coala Life Inc. Revenue predominantly came from acute hospital recurring sensor sales (76%), while revenue from our new Hospital at Home managed service offering amounted to 5%. The remaining 14% came from the delivery of capital equipment, licence sales and sales from the new subsidiary Coala Life Inc.
- Recurring sales kSEK 9,588 (9,288) with the difference relating to FX movement and high US sales from Coala Life Inc.
- The gross margin was 77% (79%).
- EBITDA was kSEK -8,002 (-1,589), with the significant difference being the operational overhead of the US company during the reorganisation.
- Loss after financial items was kSEK -11,703 (-6, 357), which is in line with EBITDA differences
- Basic earnings per-share were SEK -0.56 (-0.31).
- Cash and cash equivalents as of March 31, 2024, were kSEK 1,248 (2,856).
Highlights Q2
- PMDS completed the acquisition of Coala Life Inc (USA) in April 2024, alongside the acquisition of the Coala Life AB patents and licences and other assets
- In May 2024, PMDS licenced the sale of Coala Life devices to Red Line Microconsult AB for SEK 2m plus royalty fees on future European sales.
- Revised annual recurring revenue (ARR) target from 100m SEK to 260m SEK by yearend 2026. The increase is driven by the current strong business activity in the UK and the acquisition and subsequent restructuring of the US remote patient monitoring company.
Notable events since Q2
- PMDS carries out a rights issue of approximately SEK 27.5 million.
The link to the Year-end report: https://investors.pmd-solutions.com/en/investors/reports-and-presentations/
CEO COMMENTS
Continued Success Beyond Ireland
On 25 June, PMDS updated the company’s financial targets, increasing the annual recurring revenue (ARR) target from 100m SEK to 260m SEK by year-end 2026. The update also reaffirmed that PMDS expects its operations to be cashflow positive by year-end 2024. Today, PMDS reiterates these financial targets and provides a backdrop to the financials in its upcoming Q2 report.
We have accomplished a swift integration of the acquired US company, reshaping its operational model and commercial strategy. Operational running costs have been reduced by over 80%, and customer accounts have been reduced to focus the business on those key accounts that will result in the company reaching profitability in 2024. Restructuring costs associated with the acquisition have meant that the expenses for the second quarter were larger than expected. The main part of these costs is of a non-recurring nature.
When releasing the updated financial targets, PMDS stated that the number of active monthly patients had increased to 1,400, with a compliance of 70%, and the current business has a cashflow break-even point of 2,300 monthly patients. Today, we realise that it is possible to reach a positive cashflow with a smaller number of patients as a result of the new operational model. We expect US sales to increase with the new, healthy, restructured business. Furthermore, the company’s European business is growing in line with expectations.
We are achieving our priorities for this year, and the forthcoming rights issue is an important prerequisite to support an extended growth period for PMDS. As we continue to grow, our focus remains on expanding our market presence in the US, the UK, and Germany.
We continue to work towards our target of achieving significant ARR and having a positive cash flow by year-end 2024.
Stockholm, August 22th 2024
Myles Murray, Founder and CEO