ContextVision AB: Q1 interim report 2024 - Building for the future and leading innovation

Q1 Highlights

• Participation in the European Congress of Radiology in Vienna meeting new potential customers and following up on previous discussions with potential customers.

• Celebrating 25 years of partnership with a customer, underscoring our commitment to long-lasting relationships and techological leadership.

• Rebuilding of the internal product development structure to enable faster and more frequent product releases in the future.

• Continued strategic investments in Point of Care Ultrasound (POCUS) with the recruitment of a program lead in the USA.

Q1 Financial Data

• Net Sales of 34.7 MSEK (32.4), displaying a growth of 7.1%.

• Adjusted EBITDA amounted to 14.0 MSEK (13.1) with an adjusted EBITDA margin of 40.3% (40.5).*

• Adjusted operating result amounted to 12.2 MSEK (10.8) with an adjusted operating margin of 35.0% (33.5).*

• Adjusted earnings per share was 0.13 SEK (0.11).*

• Cash flow from operating activities was 7.1 MSEK (8.8).

* Adjusted for investments in point-of-care ultrasound which amounted to 1.2 MSEK.

Building for the future and leading innovation

As we step into 2024, we have actively been laying the foundations for the future. Our presence at the European Congress of Radiology (ECR) has opened doors to new promising customer relationships, while internally, we’re fine-tuning our processes for greater agility in product releases. We are also continuing our innovation within Point-of-Care Ultrasound (POCUS), looking forward to announcing exciting advancements as we progress.

The first quarter of the year has financially been stronger than expected. We reached net sales of 34.7 MSEK, displaying a growth of 7.1% compared to the same period last year. EBITDA reached 14 MSEK with an EBITDA margin of 40.3% adjusted for investments in POCUS amounting to 1.2 MSEK (3.4% of net sales). The growing net sales can mainly be explained by favorable timing of large orders in the first quarter. However, we see market indicators suggesting a potential downturn in sales for some of our customers in Asia, which could impact us ahead.

In March, our attendance at ECR was marked by promising discussions with potential customers. We engaged in follow-up conversations with familiar prospects, including several large businesses, and we initiated dialogue with numerous new potential customers.

For many years, we have excelled in fostering our customer relationships. We consistently build new connections while expanding existing ones, thereby increasing our share of wallet. A testament to our success is the 25th anniversary of our partnership with a key customer this quarter – an occasion we proudly celebrated. With several partnerships exceeding a decade, we not only demonstrate the deep trust our customers place in us, but also affirm our long-lasting position as best in class. Our commitment to technological leadership remains unwavering, as we continue to keep our innovation efforts at a high pace.

During the quarter, we have also seen advancements in our process of refining our product development processes. This is something that will enhance our agility by accelerating the frequency of product releases, a key driver as we gear up for scaling the business in the long-run and moving further with our POCUS-program.

Looking at POCUS, we are methodically advancing, transforming into data quality to unlock new revenue streams. Our vision for growth in this sector is substantial, and with our expertise, I am confident of achieving considerable transformative growth in promising applications. An important step in this direction was appointing a new program lead in the USA for POCUS. He will initially be leading collaboration with clinical, academic and industrial partners as well as building the engineering team. We will continue investing to become a key player in the transformation of the healthcare sector we envision for the future, and we look forward to sharing more about our exciting progress soon.

Dr. Dr. Gerald Pötzsch
Chief Executive Officer, ContextVision AB

For more information, please contact:

Richard Hallström, Chief Financial Officer ContextVision,
[email protected]

About ContextVision

ContextVision is a medical technology software company specialized in image analysis and artificial intelligence. As the global market leader within image enhancement, we are a trusted partner to leading manufacturers of ultrasound, X-ray and MRI equipment around the world. Our expertise is to develop powerful software products, based on proprietary technology and artificial intelligence for image-based applications. Our cutting-edge technology helps clinicians accurately interpret medical images, a crucial foundation for better diagnosis and treatment. The company, established in 1983, is based in Sweden with local representation in the U.S., Japan, China and Korea. ContextVision is listed on the Oslo Stock Exchange under the ticker CONTX.

This information is inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 a.m. CET on May 8, 2024.