Hyperfine Inc. Earnings Call: Growth Amid Challenges

Hyperfine Inc. ((HYPR)) has held its Q4 earnings call. Read on for the main highlights of the call.

Hyperfine Inc.’s recent earnings call painted a mixed picture, reflecting both optimism and challenges. The company showcased strong revenue growth and improved gross margins, alongside strategic expansions into international and office markets. However, these positives were tempered by decreased quarterly revenue, U.S. sales delays, and ongoing net losses, creating a balanced yet cautious sentiment.

Revenue Growth and Gross Margin Expansion

Hyperfine reported a notable revenue increase for the full year 2024, reaching $12.9 million, a 17% rise year-over-year. The company’s gross profit also saw a 24% increase, totaling $5.9 million, with a gross margin of 46%, up by 300 basis points from the previous year. This growth underscores Hyperfine’s ability to enhance profitability despite market challenges.

Cash Burn Reduction and Financial Strengthening

In 2024, Hyperfine successfully reduced its net cash burn by 9% and completed a reorganization to lower operating costs. The company raised $6 million through a direct offering, extending its cash runway to the end of 2026, which reflects a strengthened financial position and strategic cost management.

FDA Clearance and Software Releases

Looking ahead, Hyperfine plans to release two new AI-powered software updates in 2025, aimed at significantly improving image quality. The first update is expected by mid-2025, with image quality comparable to conventional 1.5 Tesla MRI systems, marking a significant technological advancement.

International and Office Market Expansion

Hyperfine expanded its commercial focus internationally in 2024, securing 13 distributors across Europe, the Middle East, and Asia. The company also plans to enter neurology offices by mid-2025, broadening its market reach and enhancing its global footprint.

Decline in Quarterly Revenue and U.S. Hospital Sales Delays

The fourth quarter of 2024 saw a decline in revenue to $2.3 million from $2.7 million in the same quarter of the previous year. This was attributed to longer deal timelines with U.S. hospitals and lower average selling prices from international deals, highlighting challenges in maintaining sales momentum.

Underperformance and Sales Team Reorganization

The U.S. field team faced uneven performance, leading to a significant reorganization with 50% of underperforming regions being replaced. This restructuring may impact sales momentum as new team members are integrated and trained.

Continued Net Losses

Hyperfine reported a net loss of $10.4 million for Q4 2024, slightly improved from a $10.7 million loss in Q4 2023. The full-year net loss was $40.7 million, compared to $44.2 million in 2023, indicating ongoing financial challenges despite some improvement.

Forward-Looking Guidance

In its guidance for 2025, Hyperfine anticipates a revenue increase of 20% to 30% over 2024, with first-half revenue expected to be around $6 million. Gross margins are projected to range between 47% and 52%, with aims to sustainably surpass 50% as volume growth is realized. The company plans to reduce total cash burn significantly and is focusing on expanding its commercial presence across various markets, securing its cash runway until the end of 2026.

In summary, Hyperfine Inc.’s earnings call highlighted a company in transition, balancing growth and innovation with financial and operational challenges. While the sentiment was mixed, the company’s strategic initiatives and forward-looking guidance suggest a cautious optimism for the future.