Sofwave Medical Reports Fourth Quarter and Full Year 2023 Financial Results and Business Highlights
– Full fiscal 2023 revenue of $50.3M, +41% year-over-year growth; gross margin of 74.5%
– Full fiscal 2023 pulse recurring revenue of $13.0M, +81% year-over-year growth
– Fourth quarter revenue of $15.3M, +11% year-over-year growth
– IFRS operating loss narrowed to –$0.2M in the fourth quarter nearing breakeven, generated non-GAAP fourth quarter operating profit of $0.2M
SAN CLEMENTE, Calif., March 06, 2024 (GLOBE NEWSWIRE) — Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the fourth quarter and full fiscal 2023 reporting period, for the period ended December 31, 2023, and recent business highlights.
Full Fiscal 2023 and Fourth Quarter Financial Highlights
- Full Fiscal 2023 Revenue of $50.3M, representing 41% year-over-year growth
- Recurring revenue of $13.0M, a year-over-year increase of 81%, representing 25.8% of total revenue
- Gross Profit was $37.5M, a year-over-year increase of 42%
- IFRS Gross Margin: 74.5%; *Non-GAAP: 74.8%
- IFRS Operating Loss: $8.0M; down from $17.4M in 2022; *Non-GAAP Operating Loss: $5.7M
- Fourth Quarter Revenue of $15.3M; representing 11% year-over-year growth
- Recurring revenue of $4.4M, a year-over-year increase of 63%, representing 28.9% of total revenue
- Gross Profit was $11.7M, a year-over-year increase of 14%
- IFRS Gross Margin: 76.1%; *Non-GAAP: 76.3%
- IFRS Operating Loss: -$0.2M
- *Non-GAAP Operating Profit: $0.2M
- Cash and Cash Equivalents as of December 31, 2023: $24.4M. Generated $0.2M cash in the fourth quarter of 2023. Cash used in 2023 of $7.6M down from $14.2M in 2022.
Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We are extremely pleased with the performance throughout our business in 2023, and are happy to highlight top line growth of 41% and record fiscal revenue of $50.3 million. Importantly, more than 25% of our revenues last year were recurring pulse sales, indicating the high customer satisfaction rate associated with our SUPERB™ technology. Moreover, the recently completed fourth quarter represented our first quarter of non-GAAP operating profit, while our IFRS operating loss continues to narrow substantially and decreased 95% for the full-year as compared to 2022. The execution of our 2023 operating plan has demonstrated the commercial value and disruptive nature of the SUPERB™ technology platform as we look to achieve consistent, strong growth of both revenue and margins. The fiscal results reported today were underpinned and amplified throughout the year by selective geographic and indication expansions, support from a rapidly growing customer base, as well as technology innovation with follow through to new product launch. We are grateful for all of the support and recognition that we have received to date and look forward to continuing to earn the support of existing and new customers and patients alike in the new year.”
Dr. Shimon Eckhouse, Chairman & Co-Founder, added, “In fiscal 2023, Sofwave continued advancing the Company’s mission to be clearly recognized by physicians, patients and industry as the leader and innovator in superior non-invasive energy based aesthetic solutions. Full-year 2023 was highlighted by strong financial and operational performances. With a compound annual revenue growth rate of 85% since commercial launch of our SUPERB™ technology in 2020, significant momentum exists throughout our business. Looking ahead, we are confident in the future outlook for our business, as the widespread use of GLP-1 inhibitors is driving increased demand for skin tightening, lifting and toning procedures.”
Recent Operational Highlights
- Medical aesthetics expert and industry veteran James Bartholomeusz was appointed to the newly created position of Chief Innovation Officer.
- Obtained FDA510(k) marketing clearance for SUPERB™ technology for improvement of the appearance of skin laxity on the upper arm.
- Obtained FDA 510(k) marketing clearance for Pure Impact™ strength and muscle toning body module utilizing PlyoPulse™ EMS technology.
- Over 225,000 treatments have been conducted since initial market approval.
Financial Summary
| IFRS Results (U.S. dollars in thousands) | ||||
| Q4’23 | Q4’22 | FY’23 | FY’22 | |
| Revenues | $15,302 | $13,779 | $50,315 | $35,630 |
| Gross Profit | $11,651 | $10,227 | $37,481 | $26,332 |
| Gross Margin | 76.1% | 74.2% | 74.5% | 73.9% |
| Operating Loss | ($163) | ($3,162) | ($7,990) | ($17,338) |
| *Non-GAAP Results (U.S. dollars in thousands) | ||||
| Q4’23 | Q4’22 | FY’23 | FY’22 | |
| Revenues | $15,302 | $13,779 | $50,315 | $35,630 |
| Gross Profit | $11,679 | $10,288 | $37,634 | $26,584 |
| Gross Margin | 76.3% | 74.7% | 74.8% | 74.6% |
| Operating Loss | $247 | ($2,011) | ($5,721) | ($12,197) |
(*) Excluding stock-based compensation
About Sofwave Medical Ltd.
Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using its 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), neck tissue and arm, as well as the short-term improvement in the appearance of cellulite and treatment of acne scars, 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
