ContextVision AB Q2 Highlights Q2 Financial Data
- Net Sales of 31.7 MSEK (33.8), down -6.2%.
- Adjusted EBITDA amounted to 9.0 MSEK (16.0) with an adjusted EBITDA margin of 28.4% (47.4).*
- Adjusted operating result amounted to 6.7 MSEK (13.8) with an adjusted operating margin of 21.1% (40.8).*
- Adjusted earnings per share was 0.07 SEK (0.14).*
- Cash flow from operating activities was 11.8 MSEK (20.6).
H1 Financial Data
- Net Sales of 66.4 MSEK (66.2).
- Adjusted EBITDA amounted to 23.0 MSEK (29.2) with an adjusted EBITDA margin of 34.6% (44.0).*
- Adjusted operating result amounted to 18.8 MSEK (24.6) with an adjusted operating margin of 28.4% (37.2).*
- Adjusted earnings per share was 0.20 SEK (0.25).*
- Cash flow from operating activities was 44.7 MSEK (25.9).
* Adjusted for investments in point-of-care ultrasound which amounted to 1.2 MSEK in Q1 and 1.6 in Q2 ..
Strong cash position supports continued investment in Image and Data Quality
In the second quarter of 2024, we have signed new customers in North America and Asia, and we are continuing our investments in both image quality and data quality. Our cash flow remains stable, with a good cash position, and we are confident that the investments we are making now will drive long-term growth.
The second quarter of the year saw a decrease in net sales compared to the same quarter last year. We achieved net sales of 31.7 MSEK, reflecting a decline of 6.2%. This decrease can largely be attributed to exceptionally favorable conditions in the second quarter of 2023, with a currency tailwind last year turning into a currency headwind this quarter. Additionally, as we mentioned in the previous quarter, there was a favorable timing of orders in the first quarter of this year, which impacted thisquarter’s sales.
EBITDA reached 9.0 MSEK with an EBITDA margin of 28.4% adjusted for investments in POCUS totaling 1.6 MSEK (5.0% of net sales). The decline in profitability can be explained by several factors. Since last year, we have recruited several experienced new hires as well as seen increased administrative costs and 1 MSEK in transactional FX. Furthermore, a change in capitalization policy in late 2023 has led to that no costs have been capitalized this year. These factors have all impacted our current profitability, and we anticipate that costs remain elevated as we continue to pursue our growth agenda in both image quality and data quality.
During the quarter, we signed several new customer contracts. Our footprint in the North American segment is positioned for significant growth with strategic customers, enabling faster revenue streams due to shorter regulatory timelines. While we observe a downturn in certain parts of Asia which could in turn, affect us; we also recognize growth potential in other market segments, particularly the U.S., including handheld devices, where a new contract has been secured.
Regarding data quality, specifically our innovations in Point-of- Care Ultrasound (POCUS), we are making progress on an expanded product pipeline for organ-specific applications aimed at streamlining disease management. This initiative is an extension of our current image quality portfolio, and holds great potential. We are also nearing the completion of an advanced development partnership with a world-renowned university in this field, as well as a collaboration with a medical device manufacturer to accelerate development and clinical validation.
Looking ahead, we see that we have good capacity to continue investing in both image quality and data quality to drive long-term growth.
Finally, I want to extend my gratitude to co-workers, customers, partners and other stakeholders. We will continue our journey of delivering best-in-class image quality technology while innovating in new, groundbreaking areas, positioning ourselves as a key player in the ongoing healthcare transformation. I look forward to sharing more updates on our progress, as we proceed and reach new milestones.
Dr. Dr. Gerald Pötzsch
Chief Executive Officer, ContextVision AB
For more information, please contact:
Richard Hallström, Chief Financial Officer ContextVision,
Richard.hallstrom@contextvision.com
About ContextVision
ContextVision is a medical technology software company specialized in imageanalysis and artificial intelligence. As the global market leader within imageenhancement, we are a trusted partner to leading manufacturers of ultrasound, X-ray and MRI equipment around the world. Our expertise is to develop powerfulsoftware products, based on proprietary technology and artificial intelligencefor image-based applications. Our cutting-edge technology helps cliniciansaccurately interpret medical images, a crucial foundation for better diagnosisand treatment. The company, established in 1983, is based in Sweden with localrepresentation in the U.S., Japan, China and Korea. ContextVision is listed onthe Oslo Stock Exchange under the ticker CONTX.
This information is inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 a.m. CET on August 26,2024.
https://news.cision.com/contextvision-ab/r/contextvision-ab--q2-interim-report-2024---strong-cash-position-supports-continued-investment-in-ima%2Cc4028132
ContextVision Q2 Interim Report 2024
