Hyperfine, Inc. Reports Third Quarter 2024 Financial Results
“The Hyperfine team delivered yet another strong quarter of financial performance across revenue growth, gross margin expansion, and disciplined cash management while executing against several important priorities in our plans to expand into new sites of care and internationally,” said
Third Quarter 2024 Financial Results
- Revenues were a record
$3.64 million , up 56%, compared to$2.33 million in the third quarter of 2023. - Gross margin was
$1.91 million , compared to$1.12 million in the third quarter of 2023, translating to a gross margin of 52% compared to 48% in the third quarter of 2023. - Research and development expenses were
$5.98 million , compared to$5.74 million in the third quarter of 2023. - Sales, marketing, general, and administrative expenses were
$6.89 million , compared to$7.14 million in the third quarter of 2023. - Net loss was
$10.33 million , equating to a net loss of$0.14 per share, as compared to a net loss of$10.76 million , or a net loss of$0.15 per share, for the third quarter of 2023.
Recent Achievements and Business Highlights
- Technology Enhancements:
- Obtained CE approval of 9th generation AI-powered brain imaging software with enhanced speed.
- Commenced full rollout of 9th generation AI-powered brain imaging software following FDA clearance in
July 2024 .
- Alzheimer’s Clinical Data:
- High exposure at three significant Alzheimer’s meetings: Alzheimer’s
Association International Conference (AAIC)Philadelphia , AAIC Tokyo, and the Clinical Trials on Alzheimer’s Disease conference with three presentations showcasing the potential value of the Swoop® system in Alzheimer’s patient management.
- High exposure at three significant Alzheimer’s meetings: Alzheimer’s
- Stroke Clinical Data:
- Subset of ACTION PMR (ACuTe Ischemic strOke detectioN with Portable MR) study data from MGH and Yale, published in the
August 2024 issue of Annals of Neurology. - Presentation by
Keith Muir , MD, of theUniversity of Glasgow , atEuropean Society of Radiology showcasing the Swoop® systems ability to detect stroke was significantly faster than conventional MRI in the Emergency Room setting.
- Subset of ACTION PMR (ACuTe Ischemic strOke detectioN with Portable MR) study data from MGH and Yale, published in the
Nine Months Financial Results
- Revenues were
$10.57 million , up 27%, compared to$8.35 million in the nine months endedSeptember 30, 2023 . - Gross margin was
$5.07 million , compared to$3.72 million in the nine months endedSeptember 30, 2023 , translating to a gross margin percentage of 48% in the nine months endedSeptember 30, 2024 , compared to a gross margin percentage of 45% in the nine months endedSeptember 30, 2023 . - Research and development expenses were
$17.51 million , compared to$16.53 million in the nine months endedSeptember 30, 2023 . - Sales, marketing, general, and administrative expenses were
$20.13 million , compared to$23.68 million in the nine months endedSeptember 30, 2023 . - Net loss was
$30.33 million , equating to a net loss of$0.42 per share, as compared to a net loss of$33.55 million , or a net loss of$0.47 per share, for the nine months endedSeptember 30, 2023 .
2024 Financial Guidance
- Management expects revenue for the full year 2024 to be
$14 to$14.5 million , reflecting year over year growth of 27% to 31%. - Management expects its cash burn for the full year 2024 to be
$37 to$40 million .
Conference Call
About
The mission of
Hyperfine, Swoop, and Portable MR Imaging are registered trademarks of
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Actual results of
Investor Contact
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share and per share amounts) | ||||||||
(Unaudited) | ||||||||
2024 |
2023 |
|||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 45,765 | $ | 75,183 | ||||
Restricted cash | 219 | 621 | ||||||
Accounts receivable, less allowance of |
6,800 | 3,189 | ||||||
Unbilled receivables | 2,264 | 942 | ||||||
Inventory | 7,044 | 6,582 | ||||||
Prepaid expenses and other current assets | 2,002 | 2,391 | ||||||
Total current assets | 64,094 | 88,908 | ||||||
Property and equipment, net | 3,125 | 2,999 | ||||||
Other long term assets | 2,167 | 2,292 | ||||||
Total assets | $ | 69,386 | $ | 94,199 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 1,404 | $ | 1,214 | ||||
Deferred grant funding | 219 | 621 | ||||||
Deferred revenue | 1,413 | 1,453 | ||||||
Due to related parties | 53 | 61 | ||||||
Accrued expenses and other current liabilities | 6,870 | 5,419 | ||||||
Total current liabilities | 9,959 | 8,768 | ||||||
Long term deferred revenue | 1,105 | 968 | ||||||
Other noncurrent liabilities | — | 64 | ||||||
Total liabilities | 11,064 | 9,800 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Class A Common stock, |
5 | 5 | ||||||
Class |
2 | 2 | ||||||
Additional paid-in capital | 342,367 | 338,114 | ||||||
Accumulated deficit | (284,052 | ) | (253,722 | ) | ||||
Total stockholders' equity | 58,322 | 84,399 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 69,386 | $ | 94,199 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
(in thousands, except share and per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Sales | ||||||||||||||||
Device | $ | 3,033 | $ | 1,728 | $ | 8,707 | $ | 6,670 | ||||||||
Service | 610 | 602 | 1,862 | 1,676 | ||||||||||||
Total sales | 3,643 | 2,330 | 10,569 | 8,346 | ||||||||||||
Cost of sales | ||||||||||||||||
Device | 1,359 | 835 | 4,280 | 3,321 | ||||||||||||
Service | 376 | 371 | 1,224 | 1,302 | ||||||||||||
Total cost of sales | 1,735 | 1,206 | 5,504 | 4,623 | ||||||||||||
Gross margin | 1,908 | 1,124 | 5,065 | 3,723 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Research and development | 5,865 | 5,739 | 17,394 | 16,531 | ||||||||||||
General and administrative | 4,510 | 4,615 | 13,361 | 16,103 | ||||||||||||
Sales and marketing | 2,496 | 2,529 | 6,769 | 7,575 | ||||||||||||
Total operating expenses | 12,871 | 12,883 | 37,524 | 40,209 | ||||||||||||
Loss from operations | (10,963 | ) | (11,759 | ) | (32,459 | ) | (36,486 | ) | ||||||||
Interest income | 585 | 1,021 | 2,056 | 2,920 | ||||||||||||
Other income (expense), net | 52 | (19 | ) | 73 | 12 | |||||||||||
Loss before provision for income taxes | (10,326 | ) | (10,757 | ) | (30,330 | ) | (33,554 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss and comprehensive loss | $ | (10,326 | ) | $ | (10,757 | ) | $ | (30,330 | ) | $ | (33,554 | ) | ||||
Net loss per common share attributable to common stockholders, basic and diluted | $ | (0.14 | ) | $ | (0.15 | ) | $ | (0.42 | ) | $ | (0.47 | ) | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 72,678,622 | 71,464,315 | 72,219,681 | 71,178,769 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(in thousands) | ||||||||
(Unaudited) | ||||||||
Nine Months Ended |
||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (30,330 | ) | $ | (33,554 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 775 | 791 | ||||||
Stock-based compensation expense | 3,308 | 3,453 | ||||||
Loss on disposal of property and equipment, net | 156 | 48 | ||||||
Other | 6 | 25 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | (3,611 | ) | (334 | ) | ||||
Unbilled receivables | (1,322 | ) | (228 | ) | ||||
Inventory | (579 | ) | (2,494 | ) | ||||
Prepaid expenses and other current assets | (324 | ) | 1,010 | |||||
Due from related parties | — | 48 | ||||||
Prepaid inventory | 693 | 281 | ||||||
Other long term assets | (9 | ) | 142 | |||||
Accounts payable | 193 | 229 | ||||||
Deferred grant funding | (402 | ) | (196 | ) | ||||
Deferred revenue | 97 | (364 | ) | |||||
Due to related parties | (8 | ) | 48 | |||||
Accrued expenses and other current liabilities | 949 | (776 | ) | |||||
Operating lease liabilities, net | (2 | ) | — | |||||
Net cash used in operating activities | (30,410 | ) | (31,871 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (375 | ) | (546 | ) | ||||
Net cash used in investing activities | (375 | ) | (546 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from exercise of stock options | 160 | 146 | ||||||
Proceeds from shares issued under “at-the-market” offering program, net of selling costs | 805 | — | ||||||
Net cash provided by financing activities | 965 | 146 | ||||||
Net decrease in cash and cash equivalents and restricted cash | (29,820 | ) | (32,271 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 75,804 | 118,243 | ||||||
Cash, cash equivalents and restricted cash, end of period | 45,984 | 85,972 | ||||||
Reconciliation of cash, cash equivalents, and restricted cash reported in the balance sheets | ||||||||
Cash and cash equivalents | 45,765 | 85,424 | ||||||
Restricted cash | 219 | 548 | ||||||
Total cash, cash equivalents and restricted cash | $ | 45,984 | $ | 85,972 | ||||
Supplemental disclosure of noncash information: | ||||||||
Unpaid purchase of property and equipment | $ | 571 | $ | 54 | ||||
Source: Hyperfine, Inc.