Sofwave Medical Reports Fourth Quarter and Full Year 2024 Financial Results and Business Highlights

-- Fourth quarter revenue of $18.3M, +20% year-over-year growth; IFRS gross margin of 77.0%

-- Full fiscal 2024 revenue of $59.7M, +19% year-over-year growth; IFRS gross margin of 76.0%

-- Full fiscal 2024 pulse recurring revenue of $23.3M, +79% year-over-year growth

-- Nearing breakeven, as IFRS operating loss narrowed to -$0.1M in the fourth quarter; generated non-IFRS fourth quarter operating profit of $0.6M

SAN CLEMENTE, Calif., March 05, 2025 (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 year 2024, for the period ended December 31, 2024, and recent business highlights.

Fourth Quarter and Full Fiscal 2024 Financial Highlights

   -- Fourth Quarter Revenue of $18.3M, representing 20% year-over-year growth 
 
          -- Recurring revenue of $7.2M, a year-over-year increase of 63%; 
             representing 39% of total revenue 
 
          -- Gross Profit was $14.1M, a year-over-year increase of 21% 
 
          -- IFRS Gross Margin: 77.0%; *Non-IFRS: 77.1% 
 
          -- IFRS Operating Loss: -$0.1M 
 
          -- *Non-IFRS Operating Profit: $0.6M; excluding one-time trademark 
             litigation expense on a non-IFRS basis, operating profit would 
             have been $1.5M or 8.1% of revenue 
   -- Full Fiscal 2024 Revenue of $59.7M, representing 19% year-over-year 
      growth 
 
          -- Recurring revenue of $23.3M, a year-over-year increase of 79%, 
             representing 39% of total revenue 
 
          -- Gross Profit was $45.3M, a year-over-year increase of 21% 
 
          -- IFRS Gross Margin: 76.0%; *Non-IFRS: 76.1% 
 
          -- IFRS Operating Loss: $3.6M 
 
          -- *Non-IFRS Operating Profit (Loss): -$1.2M excluding one-time 
             trademark litigation expense on a non-IFRS basis, operating profit 
             would have been $0.2M 
   -- Cash and Cash Equivalents as of December 31, 2024: $21.6M. Generated 
      $0.4M cash in the fourth quarter of 2024 versus $0.1M in the same year 
      ago period. 

Management Commentary

Mr. Louis Scafuri, Sofwave CEO, commented:

"We are delighted to report strong operational and financial results despite a persistently challenging macroeconomic environment and industry headwinds. We grew full year revenues 19% as compared to the year ago-period while recurring revenue expanded an impressive 79% year-over-year. We believe this robust performance is a testament to the rapid industry adoption of our innovative technologies. It is important to note that in the last 12 months, we doubled the number of procedures conducted with Sofwave. Importantly, we have a lean infrastructure in place to support our planned continued high growth and anticipated profitability. With a broad range of FDA clearances, over 460,000 treatments conducted to date, and surging brand awareness with a social media following of over 1,000,000 organic followers we are well-positioned to create significant long-term shareholder value."

Dr. Shimon Eckhouse, Chairman & Co-Founder, added:

"Sofwave's platform across lifting, laxity and wrinkle treatment on the face and neck, cellulite, acne scars, arm laxity and muscle toning, continues to allow us to disrupt an industry with outdated solutions. Moreover, with continued breakthroughs in the obesity space, Sofwave continues to experience growing patient demand for our superior noninvasive lifting, toning and laxity solutions. Looking ahead, we remain highly focused on accomplishing our mission, which is to become the industry leader in next-generation patented energy based non-invasive aesthetic skin treatments."

Financial Summary

 
                           IFRS Results 
                    (U.S. dollars in thousands) 
---------------------------------------------------------------- 
                              Q4'24    Q4'23   FY'24     FY'23 
--------------------------  -------  -------  --------  -------- 
          Revenues          $18,318  $15,303   $59,651   $50,315 
--------------------------  -------  -------  --------  -------- 
        Gross Profit        $14,113  $11,651   $45,336   $37,481 
--------------------------  -------  -------  --------  -------- 
        Gross Margin          77.0%    76.1%     76.0%     74.5% 
--------------------------  -------  -------  --------  -------- 
       Operating Loss        ($101)   ($163)  ($3,580)  ($7,990) 
--------------------------  -------  -------  --------  -------- 
                        *Non-IFRS Results 
                    (U.S. dollars in thousands) 
---------------------------------------------------------------- 
                              Q4'24    Q4'23     FY'24     FY'23 
--------------------------  -------  -------  --------  -------- 
          Revenues          $18,318  $15,303   $59,651   $50,315 
--------------------------  -------  -------  --------  -------- 
        Gross Profit        $14,124  $11,680   $45,401   $37,626 
--------------------------  -------  -------  --------  -------- 
        Gross Margin          77.1%    76.3%     76.1%     74.8% 
--------------------------  -------  -------  --------  -------- 
  Operating Income / Loss      $601     $247  ($1,175)  ($5,720) 
--------------------------  -------  -------  --------  -------- 
 

(*) Excluding stock-based compensation

About Sofwave Medical Ltd.

Sofwave Medical Ltd. has implemented an innovative approach to wrinkle reduction lifting and cellulite using its proprietary breakthrough technology. SUPERB$(TM)$, Synchronous Ultrasound Parallel Beam technology, is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin), to improve the appearance of skin laxity on the upper arms, as well as the short-term improvement in the appearance of cellulite and treatment of acne scars. The company's Pure Impact(TM) module uses 4(th) generation EMS technology and is cleared for muscle toning. Sofwave's products provide physicians with smart yet simple, effective, and safe aesthetic solutions for their patients. Contact: Info@sofwave.com

Investor Contact:

Brian Ritchie

LifeSci Advisors LLC

(212) 915-2578

britchie@lifesciadvisors.com

(END) Dow Jones Newswires

March 05, 2025 08:30 ET (13:30 GMT)