icad Inc (ICAD) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Shifts

GuruFocus.com10-10

Revenue: $5 million, a 21% increase over Q2 2023. Product Revenue: $3.3 million, up 41% year-over-year. Service Revenue: $1.8 million, down 5% year-over-year. Gross Profit: 84% of revenue, up from 81%...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nicad Inc (ICAD) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Shifts\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 06:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/icad-inc-icad-q2-2024-221909341.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $5 million, a 21% increase over Q2 2023.\nProduct Revenue: $3.3 million, up 41% year-over-year.\nService Revenue: $1.8 million, down 5% year-over-year.\nGross Profit: 84% of revenue, up from 81%...</p>\n\n<a href=\"https://finance.yahoo.com/news/icad-inc-icad-q2-2024-221909341.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://finance.yahoo.com/news/icad-inc-icad-q2-2024-221909341.html","article_id":"2474785459","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jyHObcBBguqepYS4jTjwYA--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/f37837b83f89261c8b4186d1a8bed22e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474785459","pubTimestamp":1728512349,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $5 million, a 21% increase over Q2 2023.Gross Profit: 84% of revenue, up from 81% in Q2 2023.Operating Expenses: $6.2 million, a 4% increase year-over-year.GAAP Net Loss: $1.7 million, or $0.07 per diluted share.Non-GAAP Adjusted EBITDA Loss: $1.2 million, decreased by $0.9 million year-over-year.Cash and Cash Equivalents: $20.4 million as of June 30, 2024.Net Cash Used in Operating Activities: $1.1 million for the first six months of 2024.Total ARR : $9.2 million, up from $8.5 million in Q2 2023.Subscription ARR: $2 million, up from $1.3 million in Q2 2023.Cloud ARR: $0.2 million, representing first recurring revenue from cloud products.Orders Closed in Q2 2024: 60 perpetual, 29 subscription, and 10 cloud orders.GuruFocus has detected 3 Warning Signs with ICAD.ICAD Inc  reported a 21% increase in revenue compared to the second quarter of 2023, indicating strong financial performance.Q: Can you elaborate on the factors contributing to the strong top-line performance in Q2, par","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"icad Inc(ICAD)2024年第二季度收益看涨期权亮点：强劲的收入增长和战略转变","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ICAD":1},"content_text":"Revenue: $5 million, a 21% increase over Q2 2023.\nProduct Revenue: $3.3 million, up 41% year-over-year.\nService Revenue: $1.8 million, down 5% year-over-year.\nGross Profit: 84% of revenue, up from 81% in Q2 2023.\nOperating Expenses: $6.2 million, a 4% increase year-over-year.\nGAAP Net Loss: $1.7 million, or $0.07 per diluted share.\nNon-GAAP Adjusted EBITDA Loss: $1.2 million, decreased by $0.9 million year-over-year.\nCash and Cash Equivalents: $20.4 million as of June 30, 2024.\nNet Cash Used in Operating Activities: $1.1 million for the first six months of 2024.\nTotal ARR (Annual Recurring Revenue): $9.2 million, up from $8.5 million in Q2 2023.\nSubscription ARR: $2 million, up from $1.3 million in Q2 2023.\nCloud ARR: $0.2 million, representing first recurring revenue from cloud products.\nOrders Closed in Q2 2024: 60 perpetual, 29 subscription, and 10 cloud orders.\n\n\nWarning! GuruFocus has detected 3 Warning Signs with ICAD.\n\nRelease Date: August 13, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nICAD Inc (NASDAQ:ICAD) reported a 21% increase in revenue compared to the second quarter of 2023, indicating strong financial performance.\nThe company successfully completed Phases one and two of its transformation plan, focusing on stabilizing cash burn and strengthening leadership.\nICAD Inc (NASDAQ:ICAD) has a global presence with over 4,000 lifetime customers across 50 countries, showcasing its extensive market reach.\nThe strategic partnership with Google Health enhances the strength and precision of ICAD's technology, expanding access to millions of women and providers worldwide.\nThe release of the ProFound cloud platform marks a significant shift towards a SaaS model, promising more predictable, high-margin economic growth.\n\n Negative Points \n\nService revenue declined by 5% over the prior year, largely due to customers migrating to subscription or cloud products.\nThe shift to a recurring revenue model from a perpetual model may result in lower GAAP revenue and negative cash flow in the short term.\nOperating expenses increased by 4% year-over-year, driven by investments in R&D and regulatory support for product and regional expansion.\nThe company reported a GAAP net loss of $1.7 million for the second quarter of 2024, although this was an improvement from the previous year.\nThe transition to a SaaS model may sacrifice immediate recognition of some GAAP revenue and cash flow as revenue will be recognized monthly rather than upfront.\n\n Q & A Highlights \nQ: Can you elaborate on the factors contributing to the strong top-line performance in Q2, particularly the $5 million revenue? A: Dana Brown, CEO, mentioned that the success was largely due to the expanded sales team, which began hitting its stride in Q2. The team rebalanced territories and focused on renewals, leading to increased deal volume. Eric Lonnqvist, CFO, highlighted the Baylor Scott & White deal as significant, though most cloud deals will impact revenue over time due to their ratable nature.\nQ: How did the cloud deals perform in Q2, and was there a backlog of deals waiting for the cloud platform's availability? A: Eric Lonnqvist, CFO, explained that while some cloud deals were in discussion before the platform's availability, the ease of testing and faster deployment accelerated closures. Dana Brown, CEO, added that more deals closed than planned, indicating strong initial interest and adoption.\nQ: With the recent sales team reconfiguration, is there a need to expand further, or is the current team size sufficient? A: Dana Brown, CEO, stated that the current team size is appropriate. The focus is on balancing roles and responsibilities, with potential adjustments as new territories are explored. For now, the U.S. team is set, with future considerations for international expansion.\nQ: Why was Q1 2022 chosen as the comparison point for ARR changes, and how has the recurring revenue model evolved since then? A: Eric Lonnqvist, CFO, noted that Q1 2022 marked the start of subscription sales, making it a logical comparison point. Since then, recurring revenue has grown significantly, providing a more stable revenue base, especially with the recent introduction of cloud services.\nQ: How do cloud and subscription models differ in terms of customer experience and revenue growth potential? A: Dana Brown, CEO, explained that subscription models involve on-premise software, while cloud solutions are hosted off-site, offering greater data management capabilities. Cloud adoption is expected to grow faster due to its convenience and scalability, although it's still early to predict when it will surpass subscription growth.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474785459"}