• Revenue: $3.6 million for Q2 2024, up 7% year-over-year and 10% quarter-over-quarter.
• Gross Profit: $1.8 million for Q2 2024.
• Gross Margin: 50% for Q2 2024, a record for the company.
• R&D Expenses: $5.9 million for Q2 2024, compared to $5.3 million in Q2 2023.
• SG&A Expenses: $6.7 million for Q2 2024, compared to $7.8 million in Q2 2023.
• Net Loss: $10.1 million for Q2 2024, or $0.14 per share, compared to $10.6 million or $0.15 per share in Q2 2023.
• Cash Burn: $9.4 million for Q2 2024.
• Cash and Cash Equivalents: $53.8 million as of June 30, 2024.
• Full Year Revenue Guidance: Raised to $13 million to $16 million for 2024.
• Full Year Gross Margin Guidance: Expected to be in the range of 45% to 50% for 2024.
• Full Year Cash Burn Guidance: Approximately $40 million for 2024.

• Warning! GuruFocus has detected 2 Warning Sign with HYPR.

Release Date: August 08, 2024

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

Positive Points

• Hyperfine Inc (NASDAQ:HYPR) reported a record revenue of $3.6 million for Q2 2024, marking a 7% increase compared to Q2 2023.
• The company achieved a record gross margin of 50% in Q2 2024, up from previous quarters.
• FDA clearance of the ninth generation AI-powered software enhances imaging capabilities, improving clinical performance.
• Strong international revenue contributions and a growing pipeline of flagship accounts in the US.
• Significant progress in clinical programs, including Alzheimer's and stroke studies, with promising initial data presented at major conferences.

Negative Points

• Net loss for Q2 2024 was $10.1 million, only a slight improvement from the $10.6 million loss in Q2 2023.
• R&D expenses increased to $5.9 million in Q2 2024 from $5.3 million in Q2 2023, indicating higher operational costs.
• The company anticipates some summer seasonality impact on revenue due to increased international revenue mix.
• Cash burn for Q2 2024 was $9.4 million, with a total expected cash burn of approximately $40 million for the full year 2024.
• Despite positive developments, the commercial entry into Alzheimer's care is not expected to contribute to revenue until the second half of 2025.

Q & A Highlights

Q: What were the reasons for updating the guidance, and was it driven by US sales or international sales? A: Maria Sainz, President and CEO, explained that the strong first half performance and momentum in both US and international channels led to the guidance update. The international channel's response and the strong US pipeline in adult and pediatric hospitals contributed to this confidence.

Q: How soon can leads from the Alzheimer's Association International Conference (AAIC) be converted into orders? A: Maria Sainz noted that while it's early to determine the conversion timeline, there was significant interest at AAIC. They have a long list of follow-up items and anticipate commercial entry into Alzheimer's care in the second half of 2025.

Q: Are there any updates expected at the CTAD conference in Madrid at the end of October? A: Maria Sainz confirmed that additional data from the Washington University Group will be presented at the CTAD conference, showcasing the merit of Hyperfine's technology in detecting ARIA in Alzheimer's patients.

Q: Can you comment on the positive feedback from the AAIC product demonstration? A: Maria Sainz highlighted the positive reception at AAIC, with over 300 participants experiencing the device. There was interest from industry players and ADRCs, and discussions on community-based screening using their device.

Q: What is the expected timeline for revenue contribution from the Alzheimer's and stroke opportunities? A: Maria Sainz stated that they anticipate revenue contributions from Alzheimer's care programs and stroke triage opportunities starting in the second half of 2025.

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