Nano-X Imaging (NNOX) Q2 Earnings call transcript Aug 20, 2024

Nanox Imaging Ltd. (Nanox) held its Q2 2024 earnings call, providing investors and analysts with a comprehensive update on the company's financial results, regulatory milestones, clinical advancements, and commercial deployments. The call, led by CEO Erez Meltzer and CFO Ran Daniel, was marked by a focus on the company's strategic initiatives and growth prospects.

Financial Highlights

Nanox reported a GAAP net loss for Q2 2024 of $13.6 million, a decrease from the $17.4 million reported in the same period last year. The decline was attributed to a decrease in research and development expenses and general administrative expenses, as well as an increase in financial income. Revenue for the quarter was $2.7 million, with a gross loss of $2.9 million on a GAAP basis. Non-GAAP gross loss was $0.9 million, representing a gross loss margin of approximately 9% on a non-GAAP basis.

Regulatory and Clinical Updates

A highlight of the call was the submission of a new 510(k) application to the FDA, aimed at expanding the indications for the Nanox.ARC system in general tomosynthesis imaging. This submission, which includes new clinical data, is expected to significantly expand the system's indication for use, enabling it to be used for chest indications, among others. Nanox is also in advanced stages of securing the CE mark for the EU region and expects to provide updates as soon as they become available.

Commercial Deployment and Growth

Nanox's commercial efforts continued to gain momentum, with dozens of units in various stages of shipment and deployment across the U.S. and internationally. Notable deployments include 3 prominent healthcare chains operating imaging facilities across the U.S., including one of the largest in the industry. The company has also received good indications for validation of the U.S. CPT and reimbursement process, with one site reporting up to 14 scans per day.

Nanox.AI Updates

The call also touched on the company's AI business, specifically the HealthCCSng cardiac solution. Nanox highlighted the implementation of the solution in multiple healthcare systems and the positive impact it has had on early detection and preventive care of cardiovascular diseases. The company also announced the receipt of FDA clearance for the HealthCCSng version 2.0, an upgraded version of the cardiac solution.

Looking Ahead

Nanox also shared plans for the development of a new Nanox.ARC X system, designed to meet market needs and expand the company's product offering. The new system, which is expected to have an even smaller footprint and plug-and-play functionality, will be submitted for FDA clearance upon completion.

In conclusion, Nanox's Q2 2024 earnings call underscored the company's strong commercial progress and strategic initiatives. The regulatory updates, clinical advancements, and commercial deployments all point to a company well-positioned for growth, particularly in the areas of CT imaging and AI solutions. With a clear focus on innovation and customer needs, Nanox is poised to continue its trajectory towards becoming a leading player in the medical imaging industry.