Sofwave Medical Reports Third Quarter 2023 Financial Results and Business Highlights

- Third quarter revenue of $12.2M, +49% year-over-year growth
- Third quarter pulse recurring revenue of $3.1M, +99% year-over-year growth
- First nine months revenue of $35.0M, +60% year-over-year growth; gross margin of 73.8%
- Operating loss significantly narrowed to $1.2M in the third quarter of 2023 vs $5.2M in the same year ago period; Company approaching operating breakeven
- Over 185,000 treatments conducted since initial approval         

SAN CLEMENTE, Calif., Nov. 08, 2023 (GLOBE NEWSWIRE) -- Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the third quarter and first nine months of fiscal year 2023, for the period ended September 30, 2023, and recent business highlights.

Third Quarter and First Nine Months Financial Highlights

• Third Quarter Revenue of $12.2M; representing 49% year-over-year growth
  
  • Recurring revenue of $3.1M, a year-over-year increase of 99%, representing 25.6% of total revenue
  • Gross Profit was $8.9M, a year-over-year increase of 48%
  • IFRS Gross Margin: 73.0%; *Non-IFRS: 73.2%
  • IFRS Operating Loss: $1.2M; *Non-IFRS: $0.7M
    
    
• First Nine Months Revenue of $35.0M, representing 60% year-over-year growth
  
  • Recurring revenue of $8.5M, a year-over-year increase of 92%, representing 24% of total revenue
  • Gross Profit was $25.8M, a year-over-year increase of 60%
  • IFRS Gross Margin: 73.8%; *Non-IFRS: 74.1%
  • IFRS Operating Loss: $7.8M; *Non-IFRS: $6.0M
    
    
• Cash and Cash Equivalents as of September 30, 2023: $24.3M. Cash used in the third quarter of 2023 was only $1M compared to $5.1M in the third quarter of 2022
  

Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “Sofwave’s SUPERB aesthetic medical devices continue to gain significant traction across the global markets we serve. As such, our top-line results year-to-date have nearly surpassed our full-year 2022 total revenues, demonstrating the effectiveness of our go-to-market strategy and the growing adoption of Sofwave SUPERB technology. This demand is further evidenced by our record pulse sales, attaining the milestone of over 185,000 treatments. Moreover, we continue to drive efficiencies in our business and further narrow our operating loss. We are well-positioned to achieve operating breakeven and profitability in the near-term. In addition, we continue to expand our product portfolio and enter new markets, allowing us to further leverage the growing demand for our suite of technologies.”