What factors drove VMD's earnings growth in late 2024?

Viemed Healthcare's (VMD) earnings growth in late 2024 was primarily driven by robust growth in its core business segments, particularly in the vent and sleep sectors, and strategic initiatives that enhanced operational efficiency and market expansion:

1. **Significant Growth in Vent Business**:
- The vent business contributed 55% of Q4 revenue and 56% for the year, with a 4.4% sequential increase in Q4 and a total of 1,500 net vent adds in 2024, a nearly 50% increase from 2023.
- This growth underscores the critical role of the vent segment in Viemed's portfolio and reflects its strong market presence.
2. **Notable Expansion in Sleep Business**:
- The sleep business demonstrated remarkable growth, with a nearly 10% sequential increase in patients and a 43% increase in 2024 compared to 2023, contributing 17% to Q4 revenues.
- This segment's expansion highlights Viemed's successful diversification and market penetration in the sleep therapy space.
3. **Record Revenue Growth**:
- Viemed reported a 20% year-over-year increase in revenue for Q4 2024, reaching $60.7 million, and a 23% increase for the full year, totaling $224.3 million.
- The company's adjusted EBITDA grew by 11% for the quarter to $14.2 million and 19% for the full year, indicating strong operational performance and financial health.
4. **Strategic Initiatives**:
- Viemed's strategic initiatives, such as expanding its sales force and leveraging established payer relationships, have contributed to its growth and are expected to support future revenue expansion.
- The company's optimistic outlook for 2025, with projected net revenue between $254 million and $265 million, and adjusted EBITDA between $54 million and $58 million, underscores its confidence in sustaining growth momentum.

In summary, Viemed's earnings growth in late 2024 was driven by strong revenue expansion in its core business segments, particularly the vent and sleep areas, coupled with strategic enhancements in operational efficiency and market penetration.