SANUWAVE Health, Inc. Q4 FY2024 earnings call

• Revenue: Ended Q4 with $10.3 million, a meaningful milestone, with strong growth in both systems and consumables. - Systems sales: Sold 135 UltraMIST systems in Q4, outpacing Q3 and far exceeding Q4 2023. - Gross margins: Reached 77.9% in Q4 due to scale benefits from new manufacturing agreements and price discipline. - Capital structure: Completed cap structure simplification in Q4 2024, including note and warrant exchange, reverse split, and pipe transaction, leading to uplift in NASDAQ on March 7, 2025.

In the fourth quarter, systems sales: 135 UltraMIST systems were sold, with 71% year-over-year growth. Ended 2024 with 1,047 systems in the field, up from 647 at the end of 2023. Consumables sales: Applicator sales in Q4 were $5.9 million, up 68% from Q4 2023 and up 11% sequentially from Q3. They constituted 58% of the overall revenue in the quarter, in line with the 55% to 65% target for consumable sales.

• Q1 guidance: $8.4 million to $9 million in revenue, representing 45% to 55% growth from Q1 2024. - Full-year guidance: Initiating guidance of $48 million to $50 million in revenues, representing a 50% year-on-year growth rate plus or minus 3%.

This call may contain forward-looking statements which are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control. Description of these risks and uncertainties and other factors that could affect financial results is included in SEC filings, and actual results may differ materially from those projected in the forward-looking statements.

Q: Chris Plahm asked about the new head of sales hired in January and what's changing versus last year and how it's going so far.

A: Morgan Frank said they started 2024 with two salespeople and ended the year with nine, likely ending Q3 with about nine but three different. Changed to a deeper, consultative sale, hiring Tim Wern who has relevant experience.

Q: Carl Byrnes asked about characterizing the 135 UltraMIST placements with respect to large multi-order enterprise-type accounts or small one, two system order accounts and outlook for 2025.

A: Morgan Frank said there were a mix of ones and Qs, new customers and existing customers growing. Gearing up for larger sales, currently manufacturing UltraMIST systems at about 25 a week and working to double in 60 days.

Q: Ian Cassel asked about advancing additional confirmatory studies and new studies to potentially open up more use cases for UltraMIST.

A: Morgan Frank said they started outreach with KOLs and researchers, some customers have data, looking at prospective studies, including on recurrence rates in various applications like diabetic foot ulcers, with plans to get concrete plans in motion in the next quarter or two.