InspireMD Inc ((NSPR)) has held its Q4 earnings call. Read on for the main highlights of the call.
InspireMD Inc.’s recent earnings call painted a picture of cautious optimism, with the company reporting strong revenue growth and clinical trial success for its CGuard products. The anticipation of entering the US market is a significant driver of this optimism. However, the company faces financial challenges due to increased operating expenses, decreased gross profit margins, and a higher net loss.
Record CGuard Revenue
InspireMD reported a new quarterly high for CGuard revenue, reaching $1.95 million in Q4 2024, which marks a 10.6% growth year-over-year. For the full year 2024, the revenue was $7 million, translating to a 13% growth compared to 2023. This growth reflects the strong market demand for CGuard products.
CGuard Prime US Market Entry
The company is eagerly anticipating the US approval and launch of CGuard Prime in the first half of 2025. If Q4 sales were in the US market, the potential revenue could exceed $16 million. This expansion is expected to significantly boost the company’s financial performance.
Strong Clinical Trial Results
The CGUARDIANS trial results were promising, showing a major adverse events rate of just 0.95% through 30 days and 1.95% through 12 months post-procedure. These results are the lowest ever reported in a pivotal study of carotid stent or embolic protection devices, highlighting the product’s efficacy.
Strategic US Headquarters
To support the anticipated US launch and commercialization of CGuard Prime, InspireMD has established new headquarters in Miami, Florida. This strategic move is aimed at bolstering their presence and operational capabilities in the US market.
Decreased Gross Profit and Margin
Despite the revenue growth, InspireMD faced a decrease in gross profit for Q4 2024 by 7.1% to $469,000, with the gross margin dropping to 24.1% compared to 28.7% in Q4 2023. This decline is attributed to higher costs of goods sold.
Increased Operating Expenses
The company’s total operating expenses for Q4 2024 increased by 55.8% to $9.8 million compared to the same period in 2023. This rise was mainly due to increased salaries and share-based compensation in preparation for the US market entry.
Higher Net Loss
InspireMD reported a higher net loss for Q4 2024 at $9.1 million compared to $5.4 million in Q4 2023, and $32 million for the full year 2024 compared to $19.9 million in 2023. This increase in net loss is a significant financial challenge for the company.
Forward-Looking Guidance
InspireMD did not provide specific forward-looking revenue guidance but remains optimistic about its growth trajectory, especially with the potential FDA approval of CGuard Prime. The company aims to expand its presence in the US market, backed by a robust commercial and operational strategy.
In conclusion, InspireMD’s earnings call reflects a mixed sentiment of cautious optimism. While the company has achieved significant revenue growth and clinical success, financial challenges persist due to increased expenses and net loss. The anticipated US market entry is a critical factor that could drive future growth and profitability.