Sensus Healthcare: Strong Revenue Growth and Expanding International Presence Drive 2024 Results

Sensus Healthcare, Inc. (Nasdaq: SRTS), a medical device company specializing in non-invasive treatments for skin conditions, is set to report its 2024 fourth quarter and full year financial results on Wednesday, February 5, 2025. The company will also hold a business update conference call at 4:30 p.m. Eastern time. This article explores the key drivers behind Sensus Healthcare's growth and the potential impact on future financial performance.

Strong Revenue Growth

Sensus Healthcare's revenue growth trajectory has been robust over the past year, with significant increases in the number of systems shipped. Here's a breakdown of the revenue growth for the past three quarters:

1. First quarter of 2024: Revenues were $10.7 million, compared with $3.4 million in the prior-year quarter, an increase of 214%. This growth was primarily driven by higher superficial radiotherapy (SRT and IG-SRT) unit sales, with 26 systems shipped compared to 10 systems in the same period last year.
2. Second quarter of 2024: Revenues increased 104% over the comparable 2023 quarter to $9.2 million, reflecting higher SRT and IG-SRT unit sales. The company shipped 23 systems, including three SRT-100 units to Asia, compared with 13 systems in the 2023 quarter.
3. Third quarter of 2024: Revenues more than doubled versus the 2023 third quarter, with revenues of $8.8 million compared to $3.9 million in the prior-year quarter. Adjusted EBITDA (a non-GAAP measure) was $1.6 million, compared with negative $1.7 million a year ago.

Several factors contributed to this positive revenue growth trend, including increased sales of SRT and IG-SRT units, expansion into international markets, and the launch of the "Fair Deal Agreement" recurring revenue program.



Expanding International Presence

Sensus Healthcare's expanding international presence, particularly in Asia, is a key driver for future financial growth. The company has been actively establishing partnerships and distribution agreements with local healthcare providers and distributors in the region. This growth is expected to impact future financial performance by increasing revenue, expanding market reach, and diversifying revenue streams.

Recurring Revenue Program

The "Fair Deal Agreement" recurring revenue program has contributed significantly to Sensus Healthcare's growth by addressing customers' needs to deploy capital in other areas of their business, especially during challenging macroeconomic conditions. As of the second quarter of 2024, the company had signed 15 agreements for SRT-100 Vision (IG-SRT) units since the program's introduction in March. This program is expected to generate recurring revenue for the company in 2025 and contribute to its growth for years to come.

In conclusion, Sensus Healthcare's strong revenue growth, expanding international presence, and recurring revenue program are key drivers for future financial performance. As the company reports its 2024 fourth quarter and full year financial results, investors will be looking for updates on these growth initiatives and any new developments that may impact the company's future prospects.