Profound Medical Corp. Q4 FY2024 earnings call

• TULSA-PRO had 17 clinical presentations at major society meetings, highlighting its precision and flexibility for prostate disease treatment.
• The CAPTAN randomized trial comparing TULSA procedure to robotic radical prostatectomy had 201 patients randomized and 174 treated/scheduled as of January 2025, with first readout expected at AUA Annual Meeting in Las Vegas.
• Completed turnaround of commercial organization globally, with a world-class team in sales, marketing, and business development. Transitioned from placement model to capital model.
• Expect perioperative data from CAPTAIN at AUA in April, plan to use results for reimbursement and guidelines. Introduce BPH TULSA AI module for customized treatment, demo at AUA in April. Launch TULSA Plus combining TULSA-PRO and Siemens interventional MRI in H2 2025.

For the three-month period ended December 31, 2024, Profound recorded revenue of $4.2 million, with $2.7 million from recurring revenue and $1.5 million from one-time sale of capital equipment. Fourth quarter 2024 revenue increased 108% from $2 million in the same period of 2023. Gross margin in Q4 2024 was 71% compared to 52% in Q4 2023. Total operating expenses in Q4 2024 were $11.3 million vs $9.8 million in Q4 2023. Net loss in Q4 2024 was $4.9 million or $0.20 per common share, a 45% improvement from a net loss of $8.9 million or $0.42 per common share in Q4 2023. As of December 31, 2024, Profound had cash of $54.9 million.

• Expect high double-digit growth in 2025.
• Hockey stick growth expected late 2025/early 2026 with triple-digit revenue growth in 2026 and beyond.
• Perioperative data from CAPTAIN to be available at AUA in April.
• Demo BPH AI module at AUA in April.
• Launch TULSA Plus in second half of 2025.

Q: Starting off on the commercial side, with strong double-digit growth expected, talk about confidence in growth acceleration post-Medicare reimbursement.

A: Arun mentioned clinical value of product is well-received, economics show higher reimbursement for hospitals, Q4 capital sales were good, pipeline and sales team energized. Tom added about Profound Capital Solutions offering various ownership means and multiple revenue streams.

Q: On the BPH product launch, updated timing and regulatory clearances; also uptake among Medicare payers and private insurance payments.

A: Mathieu said BPH modules will be demoed at AUA in April with mid-year launch, timeline on track. Arun mentioned Medicare payments take time, but Q4 recurring revenue up, hearing satisfied users from private insurance payments, and team is developing strategy for prioritizing private insurance companies