SNWV - Earnings call transcript Q2 2024

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Operator

Good day, everyone, and welcome to Sanuwave announces highest quarterly revenue in company history Q2 2024 Results. [Operator Instructions]. Later you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]. Please note that this call may be recorded. Instructions]. [Operator my the now Morgan over to CEO. Frank, pleasure is conference turn to It

Morgan Frank

Second Earnings Quarter Sanuwave's to Welcome XXXX Call.

night. As many filed Monday was Form our of you with probably the noticed, XX-Q SEC

and earnings our on Our website Investors during to our Please in issued this was this presentation. the updated is made release presentation available refer that section. morning

Joining the call after will we call, for me is Q&A. And on open the Sorensen, our up CFO.

call obligatory ability and in we contain get of affect me forward-looking any cautioned are constraints, and Actual going, such business statements AEC are of company update statements other forward-looking may uncertainties, forward-looking control. Description forward-looking the uncertainties the all performance, statements, and activities. to included any guarantees company's could future results statements. development as undertakes factors differ in risks financial This before statements from that the statements no So results, and future is go the disclaimer. plans let beyond these obligation results to those to are such and projected for that risks and Investors through materially not expectations future the filings. forward-looking may regarding financial production which our of many

XX-Q As filed and for Reconciliations today the non-GAAP XX, a reminder, ended in will GAAP recently our quarter numbers. between results found our discussion include non-GAAP our can XXXX. be June

That's Okay. it.

in can higher our the mid-XXs we the And being spoke growth call, stabilize believe going conference about to term. in gross we get in last we rates forward. So near sustainable margins that the QX

XX% these XX% margins some manufacturers. up growth very costs contract with precise QX to pleased up figures -- of to north standing associated despite and of targets more, once putting XX%, new obviously revenue X margins XXXX We our be for gross of of have hit are both

operating half, the seasonally generally So despite company positivity was this by the the hitting and half achieving in in levels which potential revenue quarterly despite performance think for softer first really company doing I merger, second adjusted the record our costs being strong also to EBITDA home and for the model. this the just business terminated some the additional costs business the and and around that mentioned, drive I for really manufacturing quarter starts while we

still as adding year operations prior XXXX. We've commercial with systems to mantra prepare we the growth well in and XXX sales ended We to a to record XXXX, razor excited the XX% principle sequentially QX, QX our our systems XXXX quarter aim We've in and that showed manufacturing we are has deck on are XXXX. Both which which X XX% XX% we continue versus strong and the website. Applicator total we up QX our categories increase can about success revenues capacity XX% honestly, XXXX profitable our be our for in the Page quarter roughly bit been XX% for. as that sold a field. going applicator higher excess in in on stepping force of aiming we pricing update second what in this business QX continue revenue of And year-on-year consumable XX% active base team. revenues XX% than for QX Revenue mean, we've quarter QX QX traction in and a growth increased user the from to have the UltraMIST to versus benefit little applicators guiding applicators in to to been XX% guidance We're line and rapid as to growth particularly of larger seeing XXXX from field. and in our pleased QX are increased up growth to in led extremely our unit we've razorblade the and from we're us with quarterly make linearity revenue, been Sanuwave. UltraMIST QX breakout seen each revenue to of the for our from of seeing is, due QX product markets. prior were up sales, been I our XX% raise that of our and and half the

this applicator down setting is sell more because the wane, are but the we've already believe than future Obviously, to as in our of of aim number user growth. We more QX systems XX% and this and of underway stage get all we expect the base not even because in systems time for year. sold we sold process into looking is QX to well area. sales call, more last to Our we this to XXXX grow

our wound with large mobile these on we fruit to to So to complex Peter care and robust focused are customers call of continue run to turn these to midsized and the to to over starting help and the going the patients edge redefine to about for for where structure focus -- a initiatives philosophies to not some bed and to holistic this outcomes behavior providers deeply bear particularly wounds to pipeline more and wound to long-term do lead this is facilitate are skilled and are and more real holistic through continue sores care think financial improved to are a significant building or markets how results. really that and just customers and CFO, patients, to systems injuries our you on us and going unmet engage starting patients as often customer space uptake. But needs they our in engagement so to early, of in the the we nursing, for care serve now we better more Sorensen, treating lead the even pressure more believe effectively. I'm business

Peter Sorensen

increase of of to $X.X as guidance period We ended we all-time $X.X million our percentage a revenue achieved June million, our XX, and paying equity, totaled rapid the high line and to to for for And goal an quarterly long-standing to off same is discussed previous year. XXXX, stockholders' same continue growth we the period amounted versus for XX% for range bottom revenues. compared profitable quarter last for months increasing within margin the our million our XXXX. X Sanuwave you, X over growth. Revenue June XXXX, the months Morgan. indeed of XX% XX% as XX%, of exciting debt execute XX, to as liabilities, Morgan. Gross This ended as by Thank previously of XX% $X was record an on added

continued months June operating to initiative totaled $X.X drive aligns income which the and the million, $X.X XXXX, is June last of an for the ended effectively. Operating improvement X growth to For months ended period ended million manage $X XX, with $X.X which $XXX,XXX. XXXX, of same profitable the year X an June compared X months million to towards amounted increase compared for spend XX, expenses XXXX, million XX, our to

QX operating months you release $X.X June improvement expenses. Total fair period percentage $X.X XX, primarily a versus of $X.X amounted Cash ended XXXX, and due was months on transfer I'll for XX% of as EBITDA continues operational XXXX, in dropped million equivalents XX, December to XX, in operating in of and same a XXXX. debt value million. Net is to for million accruals call expenses ended June net $X.X of well income as profitability adjustment to The financial of onetime in XXXX, the the income compared totaled a However, XX, loss to revenue assets gain for to in for We $XXX,XXX $X.X as as June XX% X a versus its year, there QX same increase was and the the an for X $X.X to continued support to million XX, extinguishment last execute XXXX manage income. Adjusted back strategy as change liabilities, Morgan. to the million Sanuwave now XXXX, of of versus current for historical of and the was Sanuwave, June million. a QX the cash million $X.X $X.X an improve as period XXXX. operating XXXX. in increase million derivative of net in XXXX thank

Morgan Frank

Okay.

So securities exchange national merger this during appeared SEPA with quarter. the there We The acquiring the for to matters. other because did entity. its a to path listing company terminated to on post-merger be no

over to simplify shareholders. the been And So our move business position the the the taking leaseback improve merger. Since a without run having to deemed last of of dilution to the sufficient model forward deal months. structure. company capital in that improved is no and it or this termination, business we've deal capital The complexity steps has good XX and longer find our great a economics ourselves now we that invested was thing

of at we to holders promissory cap equity. At we the reduce trigger of the received a and to classes improve and on under piece SEPA identical within also one our we reverse approval going for we've a I split -- debt using XXX% this really that that discount. simplify the our as significant merger our count future and note have from received split and note reverse execute off really, August were agreement the present. paid to we stack we're use the shareholders' agreed issued the shareholder we this exchange share will a warrant So that, of We're note the warrant for stock similar between a -- at had XXXX time, and split, within to have noncompliant reverse seeking exchange outstanding or to proposed one

have are that case the to a future. I and I best not will is currently the assessing here. reasonable but think ratios on splits because So -- poor know that's plan, deteriorating, it's they in and this we're history, this of simply generally near occur reverse the it's tend occur this fundamentals companies the split and to bad but assume something timing

place a execute. have past having about in being being need for all in and we the about XXXX the pieces to breakout We spoken year that Sanuwave

than to count business our to not our and be respectable value cap we is a point and getting this next We price structure, for are ever this getting structure. and more where cap can that can our our the in so a integer step up convinced stock company reducing our simplifying share

team really term is is more hungry This So growth I to keen, for mean here happen. it and our long looking go building accelerating. make we're and the for

all work and So the forward. all of. and come. this be by tears of And us everyone happens at amazing been best just hard yet indications, thank here None taking and want an us itself, part their and getting sweat a it's Sanuwave I to by for blood, of thing to of is

end comments. think the that, So that's our I of prepared with

So operator, and over the can why don't to up I turn queue this back we questions.

Operator

first question ], Private our take will from [ I Adam Instructions] [Operator Gosala Investor.

Unknown Attendee

separation have each or and thank and chat interesting. you. customers? of first the to are I cost the number back politely My actual the I of and acquisition, as acquisition one my to can units Can cost questions. unit new returning these all or And chat we directly units Sanuwave what perhaps those quite company? ask, first a that's number now we how se, bottom question. mechanisms each UltraMIST impact That's per say to at percentages, of how and line, the implement then Please, talk

Morgan Frank

UltraMIST list So of start on sell we're price releasing a been we The to is have I an as I quarterly basis. system, terms a so ASPs guess with, we on getting -- in about exact $XX,XXX. mean the not system the off

great not a more razor-razorblade system and model, many it performed. We we're how the full generate then did. which cases refer sales in than revenue get rate, how applicators XX as procedure the view this from once capturing each where associated internally out to with system per it many to individual -- customer a this use We in the track price, of deal as list the XX So applicator tax and but sort we're the week that's of the we does hands is field. of capturing is of goal ultimately

very obviously, that, what mean, but we we share shared terms Street. systems, I to and is the lot been also a that what company's we of up it's and going leading of sort been the revenue source has been quarters very can that's closely consumables -- with the so -- company's obviously, growth. manage it's the leading has been In number of across can leading the it's amount a of haven't the of revenue -- significantly

use, X So it I right? to guess, out X different in different get system a it's -- channels, We -- sales terms we we the have cost into of what -- we field, really have does X separate have X.

right we we We've We only sales X this that like force, X about -- at to now. mean year direct had more right? up ramped reps. have And I began about

use if compensated XXXX and sales on of also the sales force. development being paid place our systems not a they on so, like sort works channel are business internal distributors We unless internal commercial And are commissions sell. These that series they basis. a of distributors that the both the operation units and sort of noncommissioned last an

acquisition -- and that I don't that? you we're spending I you it you for Peter, have everything. thought customer when when break across a do a you all down, cost what know percentage So of that on have on on

Peter Sorensen

really across Yes, varies it channels. I think

exact an channel. have don't I So per estimate

Morgan Frank

to pretty range reasonable. XX consider. is But to probably XX% of in sales range pretty a is a overall I think something reasonable probably It's something probably in the --

questions. didn't to? You Was I get anything several had there

Unknown Attendee

Yes.

to of something So to you numbers or hold be unit accountable on intrusive the points, haven't Street shared won't touch yet. that's if the you began I one with and you

mentioned And one website is your happen through sales given and to today's your not lead. That's fully is you optimized, website I very and clicking on who a your I About So someone of people website own make track in can I wasn't not that your myself it's if how society. market I'm generating in customers. a even is was address $X.XX. noticed this I captive a out data. stock monitor through on the -- I you Us, believe little the to sales is is so help needed talking prevalent obtaining wound address and of you business I'm sometimes direction, believe talking Google, things down And and much venue able can there to and an sales I your paid a And your the sales given audience. trafficking care. where to few and events. that in them, you that force. very them. going to know you the notice the I attention. wouldn't make write that ounce website, generate when right guys know don't do attention noticed tried find involved only potentially trading and something a you're company. How you're to is Can pretty IP story, location go I the in Richardson There trades, where generate attention can And comment the that? to all environment? are its many was that I've and there publicist even in at the I Mr. know it we the that be more hosting story. If

Morgan Frank

to where right? why this we've together. reason the think I of fundamentals that cleaning seeking Well, we're interested the structure, cap is in up I think the part -- the first company's been get

a have cap and together yourself valued them its you into is structure. for story, where its than if position have ultimately long we get that so can a company out rather being business fundamentals the Now will the

probably that something of experience. really integer. I [ up years I years it's of note you the count to part of becomes to what far at There know, stock as I our is think, range to XX current markets ], will the cap what it get how fewer mean, stock XX now looks market look this that to I price a in low realize and company's respectable difficult realize a why or, structure, we are cap and investors, is. its it actually share assess want have like guess, -- you With valued also even warrant

seeing we that what think you're Street on people once a I looking your at. more comfortable the be to lot stock going -- be towards a that? And have we -- have outreach once thoughts So are would more

Peter Sorensen

QQQ. are $X accounts, about ones restrictions so Right, or many retail, there number board a ] because the access now are -- of [indiscernible] a [ many to restricted so

Operator

questions call further I We closing management to for at turn remarks. [Operator will Instructions]. additional no this show or back time. the

Morgan Frank

quarter. for will you much, you we and speak next very you, Thank Great. to and joining thank everyone, us,

Operator

Thank you today's does for your program. This conclude participation.

any at disconnect may You time.

SANUWAVE Health (SNWV) 13 Aug 242024 Q2 Earnings call transcript