Sofwave Medical Reports Second Quarter and First Half 2023 Financial Results and Recent Business Highlights
– Second quarter revenue of $12.4M, +53% year-over-year growth
– Second quarter pulse recurring revenue of $3.3M, +100% year-over-year growth
– First half revenue of $22.8M, +67% year-over-year growth, gross margin of 74.2%
– Operating loss significantly narrows in both the second quarter and first half periods and
moves closer to reaching operating break-even
– Over 155,000 treatments performed since initial approval
SAN CLEMENTE, Calif., Aug. 08, 2023 (GLOBE NEWSWIRE) — Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported second quarter and first half fiscal 2023 financial results for the period ended June 30, 2023, and recent business highlights.
Second Quarter and First Half Financial Highlights
- Second Quarter Revenue of $12.4M; representing 53% year-over-year growth
- Recurring Revenue of $3.3M, a year-over- year increase of 100%, representing 26% of total revenue
- Gross Profit was $9.2M, a year-over-year increase of 55%
- IFRS Gross Margin: 74.6%; *Non-IFRS 75.0%
- IFRS Operating Loss: $2.9M; *Non-IFRS: $2.2M
- First Half Revenue of $22.8M, representing 67% year-over-year growth
- Recurring Revenue of $5.4M, a year-over- year increase of 88%, representing 24% of total revenue
- Gross Profit was $16.9M, a year-over-year increase of 68%
- IFRS Gross Margin: 74.2%; *Non-IFRS 74.6%
- IFRS Operating Loss: $6.6M; *Non-IFRS: $5.2M
- Cash and Cash Equivalents as of June 30, 2023: $25.3M
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We grew revenues 67% in the first half while significantly narrowing our operating loss as compared to the same year-ago period. We are very pleased with this performance and remain on a solid path towards reaching operating break-even and profitability. To summarize, in the first half we continued gaining market share, introduced new technology innovation, expanded treatment indications, increased demand from patients requesting multiple treatments for different indications, and earned multiple industry accolades. Moreover, procedure pricing is increasing in certain key markets, as we are more frequently positioned as a premium brand as global market conditions remain favorable. Additionally, to support our growth initiatives, we are significantly enhancing consumer brand awareness through social media and now have over 500,000 followers across our channels.”
Dr. Shimon Eckhouse, Chairman & Co-Founder added, “We are delighted with our results in the period as we continue to implement Sofwave’s growth initiatives and go-to-market strategy. Additionally, we continue to build market share and are optimally positioned across the most important non-invasive skin tightening markets across the globe. With 36 channel partners in key markets and with the recent regulatory approvals in Brazil and Mexico, revenues from Latin America are growing. Our efforts to build industry credibility and; expand brand awareness with KOLs, major physician peer groups and consumers, is translating to an ever increasing demand for our treatment solutions.”
First Half Business and Operational Highlights
- Granted regulatory approval for SUPERB™ technology in Mexico
- Obtained FDA clearance for the “Precise” SUPERB™ applicator
- Granted FDA clearance for Sofwave SmartTM IoT Module
- Received second U.S. patent for the Company’s proprietary SUPERB™ technology
- Awarded NewBeauty’s 2023 award for “Best Non-Invasive Cellulite Treatment”
- Awarded Good Housekeeping 2023 award for: Best Beauty Award
- New subsidiary launched in the United Kingdom
- Over 155,000 treatments performed since initial market approval
Financial Summary
| IFRS Results (U.S. dollars in thousands) |
||||||||||||
| Q2 2023 | Q2 2022 | FH’23 | FH’22 | |||||||||
| Revenues | $12,380 | $8,065 | $22,787 | $13,651 | ||||||||
| Gross Profit | $9,239 | $5,971 | $16,910 | $10,070 | ||||||||
| Gross Margin | 74.6% | 74.0% | 74.2% | 73.7% | ||||||||
| Operating Loss | ($2,876) | ($4,780) | ($6,616) | ($9,045) | ||||||||
| *Non-IFRS Results (U.S. dollars in thousands) |
||||||||||||
| Q2 2023 | Q2 2022 | FH’23 | FH’22 | |||||||||
| Gross Profit | $9,280 | $6,024 | $16,993 | $10,204 | ||||||||
| Gross Margin | 75.0% | 74.7% | 74.6% | 74.7% | ||||||||
| Operating Loss | ($2,232) | ($3,425) | ($5,241) | ($6,315) | ||||||||
(*) Excluding stock-based compensation
About
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using proprietary breakthrough technology. SUPERB™, Synchronous Ultrasound Parallel Beam technology is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin) and neck tissue and the short-term improvement in the appearance of cellulite providing physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com
Investor Contact:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
britchie@lifesciadvisors.com
