Sofwave Medical Reports Fourth Quarter and Full Year 2023 Financial Results and Business Highlights

–  Full fiscal 2023 revenue of $50.3M, +41% year-over-year growth; gross margin of 74.5%

–  Full fiscal 2023 pulse recurring revenue of $13.0M, +81% year-over-year growth

–  Fourth quarter revenue of $15.3M, +11% year-over-year growth

–  IFRS operating loss narrowed to -$0.2M in the fourth quarter nearing breakeven, generated non-GAAP fourth quarter operating profit of $0.2M

SAN CLEMENTE, Calif., March 06, 2024 (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 fourth quarter and full fiscal 2023 reporting period, for the period ended December 31, 2023, and recent business highlights.

Full Fiscal 2023 and Fourth Quarter Financial Highlights

• Full Fiscal 2023 Revenue of $50.3M, representing 41% year-over-year growth
  • Recurring revenue of $13.0M, a year-over-year increase of 81%, representing 25.8% of total revenue
  • Gross Profit was $37.5M, a year-over-year increase of 42%
  • IFRS Gross Margin: 74.5%; *Non-GAAP: 74.8%
  • IFRS Operating Loss: $8.0M; down from $17.4M in 2022; *Non-GAAP Operating Loss: $5.7M
    
    
• Fourth Quarter Revenue of $15.3M; representing 11% year-over-year growth
  
  • Recurring revenue of $4.4M, a year-over-year increase of 63%, representing 28.9% of total revenue
  • Gross Profit was $11.7M, a year-over-year increase of 14%
  • IFRS Gross Margin: 76.1%; *Non-GAAP: 76.3%
  • IFRS Operating Loss: -$0.2M
  • *Non-GAAP Operating Profit: $0.2M

• Cash and Cash Equivalents as of December 31, 2023: $24.4M. Generated $0.2M cash in the fourth quarter of 2023. Cash used in 2023 of $7.6M down from $14.2M in 2022.
  

Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We are extremely pleased with the performance throughout our business in 2023, and are happy to highlight top line growth of 41% and record fiscal revenue of $50.3 million. Importantly, more than 25% of our revenues last year were recurring pulse sales, indicating the high customer satisfaction rate associated with our SUPERB technology. Moreover, the recently completed fourth quarter represented our first quarter of non-GAAP operating profit, while our IFRS operating loss continues to narrow substantially and decreased 95% for the full-year as compared to 2022. The execution of our 2023 operating plan has demonstrated the commercial value and disruptive nature of the SUPERB technology platform as we look to achieve consistent, strong growth of both revenue and margins. The fiscal results reported today were underpinned and amplified throughout the year by selective geographic and indication expansions, support from a rapidly growing customer base, as well as technology innovation with follow through to new product launch. We are grateful for all of the support and recognition that we have received to date and look forward to continuing to earn the support of existing and new customers and patients alike in the new year.”