What caused OM's Q3 earnings to exceed forecasts?

Outset Medical Inc (OM) reported its Q3 2024 earnings, which exceeded forecasts due to several key factors:

1. **Revenue Growth**: Although total revenue decreased year-over-year, it increased sequentially, with $28.7 million reported for Q3 2024, a 5% growth from the previous quarter. This uptick, although modest, contributed to the positive surprise.
2. **Product Revenue Focus**: The company's product revenue, primarily from the sales of its Tablo Hemodialysis System, saw a significant increase of 6% to $20.3 million compared to the previous quarter. This focused effort on core product sales likely bolstered revenue and helped offset some of the overall revenue decline.
3. **Service and Other Revenue Boost**: Service and other revenue rose by 3% sequentially to $8.4 million. This growth in ancillary services and other income streams, although modest, contributed to the overall revenue performance.
4. **Strategic Financial Moves**: Outset Medical's recent reverse stock split and efforts to improve gross margins indicate strategic initiatives that could be contributing to improved financial performance.

In summary, Outset Medical's Q3 earnings exceeded forecasts due to a combination of sequential revenue growth, focused product sales, and strategic financial moves, despite overall revenue decline year-over-year.