Nexstim Oyj (FRA:5NX) (H1 2024) Earnings Call Highlights: Strong Revenue Growth and Improved ...

GuruFocus News
4 min read

In This Article:

  • Total Net Sales: EUR 3.2 million, a 27% increase compared to H1 2023.

  • Diagnostic Business Revenue: EUR 1.6 million, a 16% growth from H1 2023.

  • Therapy Business Revenue: EUR 1.6 million, a 39% increase from H1 2023.

  • System Sales: EUR 1.2 million, an 11.4% increase.

  • Recurring Net Sales: EUR 1.9 million, a 39% increase, representing 61% of total net sales.

  • Gross Margin: 82%, up from slightly less than 80% in H1 2023.

  • Operating Expenses: EUR 3.8 million, a 3% increase.

  • EBITDA: EUR 0.5 million negative, improved from EUR 1.1 million negative in H1 2023.

  • Operating Result: EUR 0.9 million negative, improved from EUR 1.4 million negative in H1 2023.

  • Profit for the Period: EUR 0.9 million negative, improved from EUR 1.4 million negative in H1 2023.

  • Operating Cash Flow: EUR 0.7 million positive, improved from EUR 1.4 million negative in H1 2023.

  • Cash Position: EUR 3 million at the end of June, a 34% increase from June last year.

  • Debt Funding: EUR 1.5 million Finnvera loan and EUR 0.7 million convertible bond.

Release Date: August 16, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Nexstim Oyj (FRA:5NX) reported a 27% increase in total net sales for H1 2024, reaching EUR3.2 million.

  • The company achieved a significant improvement in profitability, with operating losses decreasing by 38% compared to the previous year.

  • Recurring net sales, which provide stability and predictability, grew by 39% and now represent 61% of total net sales.

  • Nexstim Oyj (FRA:5NX) has a promising sales forecast for the full year of 2024, indicating continued growth.

  • The company is making effective use of its global team structure, resulting in a 30% increase in gross margin while keeping operating costs growth at only 3%.

Negative Points

  • Nexstim Oyj (FRA:5NX) is currently in a disagreement with Magnus Medical regarding royalty payments, which may impact expected income.

  • The company reported a negative EBITDA of EUR0.5 million, although this is an improvement from the previous year.

  • There is a need for more clinical trials and approvals, particularly in the United States, for the chronic pain treatment application.

  • The development and regulatory approval process for the new NBS-6 system is ongoing, which may delay its market availability.

  • Nexstim Oyj (FRA:5NX) faces investment challenges in balancing operational profitability with the need for further clinical research and development.

Q & A Highlights

Q: Can you provide an overview of Nexstim's financial performance for the first half of 2024? A: Mikko Karvinen, CEO, stated that Nexstim saw significant growth in both revenue and gross margin during H1 2024. The company reported a total net sales increase of 27% to EUR 3.2 million, with a notable improvement in operating results compared to the previous year. The diagnostic and therapy businesses each contributed EUR 1.6 million in revenue, showing growth of 16% and 39%, respectively.

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