Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q1 2024 Earnings Presentation
14 slides from Koru Medical Systems's earnings presentation, May 1, 2024
Slide 1: KORU Medical Systems Q1 2024 Earnings Call
KORU Medical Systems Q1 2024 Earnings Call May 1, 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding our expectations for future performance, including but not limited to our 501(k) clearances, new
Slide 3: Strong First Quarter Execution on 2024 Key Milestones
Strong First Quarter Execution on 2024 Key Milestones 1 Double-digit first quarter revenue growth at $8.2 million, record high quarterly revenues Strong Q1 Core business performance, growth of 14%, driven by double-digit growth in consumables, 2 continued Ig market strength, and geographic expansion
Slide 4: Progress on Vision 2026 Strategic Growth Pillars
Progress on Vision 2026 Strategic Growth Pillars Continued Penetration International Expansion into Diverse Novel Therapies In Domestic Core SCIg New Geographies Pipeline Solid Q1 performance International Core growth 16 collaborations in total 4% y/y growth driven by double-digit 63% y/y growth fue
Slide 5: Expanding our Novel Therapies Collaboration Pipeline
Expanding our Novel Therapies Collaboration Pipeline $2.7B TAM(1) Across 16 Total Collaborations 19 Open Opportunities 2.1M Global Patient Population(2) Patient Population Novel Therapies (000’s) Phase I Phase II Phase III Drug Launch Date(3) KRMD Clearance Hematology 15 May 2021 May 2022 Oncology 5
Slide 6: Q1 Y/Y Revenue by Business
Q1 Y/Y Revenue by Business Net Revenues; In Millions Domestic Core • Increased 4% y/y 11% $8.2 • Driven by higher consumable volumes due to new patient starts and share gains $7.4 $0.5 $0.6 International Core $1.8 • Increased 63% y/y $1.1 • Driven by improved Ig supply, increased penetration in appr
Slide 7: Improved Gross Margin Profile
Improved Gross Margin Profile Disciplined margin improvement Gross Margin First Quarter: 62.3% • Third consecutive quarter >60% 63.1%* • 620 basis points improvement y/y • Margin improvement driven by 620 increased manufacturing bps efficiencies and consolidation of US +60% production sites 62.0% 60
Slide 8: Improved Cash Management/Operating Leverage
Improved Cash Management/Operating Leverage Cash Balance as of March 31, 2024: $10.8M Key Drivers • Q1 cash usage of $0.7M, substantially reduced from $5.2M $11.5M spend in 1Q23 $0.7M $10.8M ($1.0M) ($0.3M) • Net loss, excluding non-cash items, of $1.0M, ~50% improvement over PY • Investing / Financ
Slide 9: Cash on Track to Break Even
Cash on Track to Break Even Cash burn directionally improving with expected 2024 ending Key Drivers cash balance of >$8.0M+ • Substantially reduced cash burn since Q1 2023, cash neutral over last $17.4M 2 quarters • Expect 2024 1H cash usage pattern to remain consistent to prior year, with higher sp
Slide 10: Reaffirming 2024 Guidance
Reaffirming 2024 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Revenue guidance of Gross margins Greater than $8M $31.2-$32.2M, or between 59-61% ending cash balance 10-13% growth Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • SCIg drug market growth of • Geog
Slide 11: 2024 Key Milestones
2024 Key Milestones Double-digit net revenue growth versus FY2023 Accelerating Core growth with new patient starts, prefill syringes and continued International expansion Growing Novel Therapies pipeline with 3 new collaborations and continued focus on late-stage drug candidates and health care prof
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the non-GAAP financial measures “adjusted EPS”, "adjusted diluted EPS“, “adjusted gross margin”, and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-G
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of GAAP Net Loss Three Months Ended March 31, to Non-GAAP Adjusted EBITDA: 2024 2023 GAAP Net Loss $ (1,935,958) $ (2,410,885) Tax (Benefit)/Expense (388,675) (577,400) Valuation Allowance for DTA 388,675 — Depreciation and Amortization 231,369 213,117 Inte