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AFIB Nasdaq· Acutus Medical Inc.
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AFIB Nasdaq· Acutus Medical Inc.
Earnings report Q3 2023

AFIB Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

AFIB reported revenue of $14.7 million for the nine months ended September 30, 2023, compared to $11.4 million for the same period in 2022. This represents a significant increase of $3.3 million or 29%. The growth in revenue was primarily driven by increased sales volume of disposable products, in line with higher procedure volumes. Additionally, AFIB experienced increased sales from left-heart access products through their partner Medtronic. Service/other revenue and capital revenue also contributed to the overall revenue growth.

Strengths

AFIB's strong revenue growth in the latest quarter can be attributed to several factors. Firstly, the increase in disposable product sales was directly correlated with the higher procedure volumes, indicating a growing demand for AFIB's products. This suggests that AFIB is successfully capturing market share and benefiting from the overall growth in the healthcare industry. Furthermore, the partnership with Medtronic has proven to be fruitful, as it has resulted in increased sales of left-heart access products. This strategic collaboration has expanded AFIB's customer base and contributed to their revenue growth.

Challenges

While AFIB has achieved impressive revenue growth, there are some challenges that need to be addressed. The gross margin for the nine months ended September 30, 2023, was negative 60%, an improvement from the negative 107% in the same period last year. However, the negative gross margin indicates that AFIB's cost of products sold still exceeds their revenue from product sales. This suggests that AFIB needs to focus on cost management and efficiency in order to improve profitability.

Noteworthy

It is worth noting that AFIB's revenue is predominantly recurring in nature once an AcQMap console and workstation is established in a customer account. This recurring revenue is derived from the sale of disposable products used with the system. This indicates a stable revenue stream for AFIB, as long as they can maintain and expand their customer base.

Summary

AFIB delivered strong revenue growth in the latest quarter, with a 29% increase compared to the same period last year. The growth was driven by increased sales volume of disposable products, in line with higher procedure volumes, as well as sales from their partnership with Medtronic. AFIB's ability to capture market share and benefit from strategic collaborations demonstrates their strengths in the industry. However, the negative gross margin highlights the need for cost management and efficiency improvements. Overall, AFIB's performance in the latest quarter indicates positive momentum and potential for future growth.

Source documents

Form 10-Q  filed on Nov 14, 2023
14 pages scanned

Reference data

Company financials Q3 revenue 0
Analyst estimates Q3 EPS missed by -100.00%
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