What caused ICAD's Q3 earnings to fall short of forecasts?

ICAD's Q3 earnings fell short of forecasts due to a combination of factors:

1. **Revenue Recognition Timing**: The company's transition to a Software-as-a-Service (SaaS) model is impacting short-term revenue recognition. This shift is causing some revenue to be recognized over time, while expenses are incurred upfront. This timing difference leads to a temporary flattening of GAAP revenue, as seen in the Q3 results.
2. **Operating Expenses Increase**: Despite the revenue growth, iCAD faced challenges with increased operating expenses, which rose by 19% to $5.6 million, up from $4.7 million in the same quarter last year. These increased expenses contributed to the net loss from continuing operations of $1.8 million, compared to a $1.0 million loss in Q3 2023.

In summary, ICAD's Q3 earnings fell short of forecasts due to the transition to a SaaS model, which affects revenue recognition timing, and increased operating expenses.