Radnet, Inc. · NASDAQ:RDNT
Radnet — Jefferies Investor Call October 2024
39 slides from Radnet's conference presentation, Oct 11, 2024
Slide 1: Jefferies Investor Update October 10, 2024
Jefferies Investor Update October 10, 2024 digital
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward - looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning our ability to continue to grow the business by generating contracts, licensing software and AI solutions, growing
Slide 3: RadNet at a Glance
RadNet at a Glance NASDAQ: RDNT Imaging Centers ~$1.8B in Revenue/ ~$262M EBITDA 1 Digital Health ~$60 - 70M in Revenue/ ~$14M EBITDA 1 ▪ 398 Locations ▪ 8 States ▪ 1,000+ contracted Radiologists ▪ 26 Health System Joint Ventures, encompassing 149 locations ▪ 10M+ Annual Procedures ▪ 2M capitated li
Slide 4: History of RadNet Digital Health: Our evolution towards tech-enabled services
4 History of RadNet Digital Health: Our evolution towards tech - enabled services Pre - 2010 RadNet licensed key workflow and clinical software solutions from 3 rd parties 7/2010 RadNet creates internal RIS development team in Prince Edward Island 10/2010 RadNet acquires PACS company eRAD, Inc. 9/20
Slide 5: RadNet Speaker Introductions
RadNet Speaker Introductions Sham Sokka Chief Operations Officer & Chief Technology Officer, RadNet Digital Health Mark Stolper Executive Vice President and Chief Financial Officer, RadNet, Inc. Dr. Greg Sorensen Chief Science Officer, RadNet & Chief Product Leader, Clinical AI, RadNet Digital Healt
Slide 6: AI-Powered Health Informatics market is sizeable with attractive growth
1 Source: Signify Healthcare Report released 08/07/2024 2 Source: Signify Healthcare Total Market for Radiology IT (Updated 2024), defined as the following components: standalone RIS & PACS, integrated Enterprise Imaging, and AV AI - Powered Health Informatics market is sizeable with attractive grow
Slide 7: Key challenges creating urgent need for RadNet's Digital Health Solutions
Key challenges creating urgent need for RadNet’s Digital Health Solutions Operational Challenges Clinical Challenges ▪ Imaging Center workflow is highly manual and inefficient ▪ Heavy reliance on labor ▪ Rising costs/ inflation create need for automation ▪ Disparate software solutions are incompatib
Slide 8: RadNet is uniquely positioned to deliver Digital Health solutions
RadNet is uniquely positioned to deliver Digital Health solutions Living clinical “lab” to test and implement ▪ 398 Locations with 1,000+ Contracted radiologists ▪ Expertise in operating imaging centers with efficiency and scale ▪ Rapid prototyping, development, validation, and clinical evidence gen
Slide 9: What is RadNet Digital Health?
What is RadNet Digital Health? Radiology Informatics ($40 - 45M 2024E Revenue) 1 Clinical AI ($20 - 25M 2024E Revenue) 1 Software - as - a - Service (SaaS) solutions focused on end - to - end Radiology workflow Current Offerings Future Offerings AI Solutions enabling population health screening and
Slide 10: AI-Powered Health Informatics
AI - Powered Health Informatics
Slide 11: Healthcare challenges and opportunities
11 Healthcare challenges and opportunities Patient engagement Workforce Data & Technology Clinical value ~10% - 20% of patients cancel late or no - show 2 Imaging is critical for defining the right care pathway Screening high volume patients is costly and complex Patient engagement via contact cente
Slide 12: Addressing operational and clinical challenges
Addressing operational and clinical challenges serves as the delivery platform for both workflow and decision support tools Clinical AI Higher quality, scalable clinical outcomes through clinical decision support tools for radiologists Radiology Informatics Improve operational efficiencies through w
Slide 13: Radiology Informatics
Radiology Informatics
Slide 14: The workflow complexity - siloed care delivery experience
Each step of the workflow has its own standalone tools Scheduling and Preparation Image Acquisition Reporting Billing and Revenue Cycle Image and Data Interpretation Clinical Collaboration and Follow - up Patients 14 The workflow complexity - siloed care delivery experience
Slide 15: The workflow complexity - siloed care delivery experience
Radiologist Technologist Referring Physician Clinical Providers Patient Liason Contact Center Rep Patient Engagement Operations Support Management Internal Operations The workflow complexity - siloed care delivery experience Each step of the workflow has its own standalone tools, with patient engage
Slide 16: A pioneering cloud-native diagnostic Operating System
A pioneering cloud - native diagnostic Operating System that unifies data across clinical and operational workflows 16
Slide 17: DeepHealth OS unifies clinical and operational workflows
or On RIS/PACS On Cloud Patient Engagement Operations Workspace Referral Workspace Technologist Workspace Diagnostics Workspace Patients Scheduling and Preparation Clinical Collaboration and Follow - up Billing and Revenue Cycle Reporting Image and Data Interpre tation Image Acquisition A pioneering
Slide 18: Smart Patient Engagement
Instructions Scheduling Smart Patient Engagement Gen - AI enabled patient scheduling, onboarding and registration Digital Patient Scheduling & Onboarding Anywhere Digital Patient Registration at the imaging center kiosks Script & Insurance Card Scanning Payment processing 18 Patient Surveys & Safety
Slide 19: Smart Image Acquisition: Tech Live
Collaboration Tools Smart Image Acquisition: Tech Live Multi - modality, Multi - vendor, AI - powered remote & collaborative scanning Patient Summary . Multi - MR Operations AI - assisted Safety & Quality Workforce Efficiency: 1 technologist operating 2+ scanners Patient Safety: AI - powered monitor
Slide 20: Smart Mammo: AI-powered Mammography Informatics
AI - powered cancer detection Fast Viewer, accessible from anywhere Semi - automated Reporting AI - based density assessment Smart prioritization and alerts AI reliability and consistency Analytics Combines the informatics capabilities of DeepHealth OS with AI for mammography Smart Mammo TM : AI - p
Slide 21: Commercialization Next Steps
Commercialization Next Steps powered solutions launched @ RSNA, December 1, 2024 Leverage UK & Europe Commercial Organization Scale US Commercial Organization Global Commercial Partnerships Cross - train the commercial organization and drive full portfolio to installed base Develop global OEM and in
Slide 22: Clinical AI
Clinical AI
Slide 23: Screening at scale powered by AI Solutions
Screening at scale powered by AI Solutions Leading breast cancer screening in the USA RadNet's Enhanced Breast Cancer Detection (EBCD) program is a breakthrough in detection. EBCD is powered by DeepHealth solutions that use AI to help radiologists detect even subtle lesions. Combined with exceptiona
Slide 24: Screening Mammogram in a Year-Old Patient
Screening Mammogram in a 70 - Year - Old Patient
Slide 25: Screening Mammogram in a Year-Old Patient
Screening Mammogram in a 70 - Year - Old Patient
Slide 26: Diagnosis: Moderately differentiated invasive ductal carcinoma
Diagnosis: Moderately differentiated invasive ductal carcinoma (ER/PR positive, HER2 negative)
Slide 27: Breast: Improving Performance of All Radiologists
27 Breast: Improving Performance of All Radiologists • Generalists have the potential to achieve breast specialist - level performance in the performance of screening mammography. • Both generalists and breast imaging specialists improved while using DeepHealth Breast • On its own, DeepHealth Breast
Slide 28: RadNet's EBCD: AI and so much more
RadNet’s EBCD: AI and so much more A whole new and much more valuable approach to screening Initial Read AI Review For BI - RADS 1+2 Expert Review Exams selected for further review are sent for a consult Selected Exams DeepHealth's Breast AI Diagnostic Software & Assure allow RadNet to prioritize ca
Slide 29: RadNet's Enhanced Breast Cancer Detection (EBCD) Program
RadNet’s Enhanced Breast Cancer Detection (EBCD) Program • The Enhanced Breast Cancer Detection (EBCD) program, running in 213 sites, is a breakthrough in detection. • 21% improvement in cancer detection rates • Combined with exceptionally high - quality mammography systems, the EBCD program optimiz
Slide 30: EBCD Clinical Impact at RadNet
EBCD | Clinical Impact at RadNet 108+ Radiologists detected additional cancers through EBCD reviews 30 Source: Data on file 17% Decrease in recall rates at one practice in 4 months through EBCD workflows 23% More breast cancers in dense tissue detected through the EBCD program 1500+ 1.5M+ Equity 21%
Slide 31: UK Targeted Lung Health Check program transforming lung cancer diagnosis
The UK's Targeted Lung Health Check program is transforming the diagnosis of lung cancer Over 225,000 scans have been processed in 2024 (YTD) by DeepHealth Over 2,400 cancers already diagnosed: 76% at stage 1 or 2 (vs 30% historically) From: England Historically Late Stage 70% Early Stage 30% Today:
Slide 32: DeepHealth Lung Portfolio today
32 DeepHealth Lung Portfolio today Lung Tracker Effortless continuity in pulmonary nodule management Source: Data on file Lung Nodules Empowering Precision in Lung Cancer Care: Smart, Swift, Precise. Lung Reporting Enrich and standardize lung nodule reporting
Slide 33: Validation at Scale: Impacting lung cancer care across Europe & the UK
Validation at Scale: Impacting lung cancer care across Europe & the UK Europe (142 active sites ) Routine clinical practice • Netherlands • France • UK • Portugal • Belgium • Switzerland • Hungary Lung cancer screening • UK TLHC program (NHS / BSTI) • Hungary (HunChest, Anna Kerpel Fronius) • France
Slide 34: DeepHealth Prostate: Improving MRI interpretation
DeepHealth Prostate | Improving MRI interpretation Automated prostate segmentation results: • Prostate volume and PSA density to provide improved measurements compared to the current clinical standard • Heatmap guidance volume and PSA, which removes stress and facilitates evaluation of the transitio
Slide 35: Improves prostate cancer detection
Improves prostate cancer detection Günzel et al., European Urology Focus, 2024 Prostate Solution ▪ In the first prospective biopsy - proven evaluation of AI assistance in 262 men 1 ▪ Sensitivity of biopsy went from 92% to 97% 35 ▪ AI - assisted reads found csPCa in 24% of men when MRI was deemed neg
Slide 36: Financial Snapshot
Financial Snapshot
Slide 37: Digital Health Segment Financials
Digital Health Segment Financials 37 Growth First 6 months 2023 First 6 months 2024 Digital Health Segment 34.4% $22.7M $30.5M Revenue 381.5% $1.4M $6.8M Adjusted EBITDA x AI Revenues increased by 128% versus the first half of FY23 x 202% YoY growth in the Breast AI revenue, driven by increasing EBC
Slide 38: Jefferies Investor Tour at RSNA
Jefferies Investor Tour at RSNA Date: December 3, 2024 Location: DeepHealth Booth 1340, South Hall Time: 8.30 to 10.00 AM (Central Time) Contact: Brian Tanquilut (Jefferies) btanquilut@jefferies.com 38 Want to learn more?
Slide 39: Caer
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