Accuray Incorporated · NASDAQ:ARAY
Accuray — Q1 FY2025 Earnings Presentation
21 slides from Accuray's earnings presentation, Nov 6, 2024
Slide 1: Q1'FY25 Earnings Call Supplemental Presentation
Q1’FY25 Earnings Call Supplemental Presentation November 6, 2024
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation is intended exclusively for investors. It is not intended for use in Sales or Marketing. 2 Proprietary and Confidential Property of Accuray Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are
Slide 3: Highlights
Highlights Strong China performance with significant interest in the Tomo® C System Service contract recurring revenue growth of 5% YOY, outpacing installed base growth Raising full year fiscal 2025 guidance Clinical data published in NEJM support the use of SBRT for the treatment of prostate cancer
Slide 4: Vision and Mission
Vision To expand the curative power of radiation therapy to improve as many lives as possible Mission To think, act, and execute beyond expectations every day to deliver better, safer radiation therapy solutions and help patients get back to living their lives, faster
Slide 5: Customer and Patient Focused Priorities
Customer and Patient Focused Priorities Advance Care by providing solutions that address the biggest pain points in RT Drive Patient Access to radiotherapy treatments in developed and high potential underserved markets Delight Customers by ensuring high operational performance so no patient is resch
Slide 6: PACE-B Prostate Study Published in NEJM
PACE-B Prostate Study Published in NEJM Study shows stereotactic body radiation therapy (SBRT) provides comparable results to conventional radiotherapy in 75% less time1 ~ 1 in 8 men in the U.S. will be diagnosed with prostate cancer2 Trial compared 5-fraction SBRT to conventional radiotherapy (CRT)
Slide 7: The CyberKnife System: First and Only Robotic Radiotherapy Platform
The CyberKnife® System: First and Only Robotic Radiotherapy Platform CyberKnife® Platform Dedicated SRS/SBRT System First frameless SRS system First SRS/SBRT system to track and automatically adjust for motion in real time Unmatched sub-millimeter robotic accuracy w/o restrictive devices All Markets
Slide 8: The Radixact System: Only System Designed for Integrated 3D Daily IG-IMRT
The Radixact® System: Only System Specifically Designed for Integrated 3D Daily IG-IMRT TomoTherapy®/Radixact® Platform First to allow for continuous helical treatment delivery First to offer ring gantry platform First to integrate daily CT imaging into the treatment process First to offer large one
Slide 9: Expanding Access to Global Value Segment
Expanding Access to Global Value Segment Accuray Helix™ Tomo® C Locally Manufactured, China Solution Manufactured in Madison, Wisconsin Fueling Growth in China Type B Market Designed for Workflow Efficiency $600M Annual TAM* $300M Annual TAM India/LATAM* *DIRAC database and proprietary data
Slide 10: China Business Progress
China Business Progress Proprietary and Confidential Property of Accuray Q1 FY25 milestone of systems built at the Tianjin facility Ended FY24 with Tomo C System NMPA license, introduction and ramp up 30% YOY revenue growth driven by both Type A and B markets Radiotherapy market share leader with Cy
Slide 11: China Margin Impact – Tomo C System
China Margin Impact – Tomo® C System Reported revenue remains the same, with or without China deferral Due to JV accounting rules, 49% of total margin needs to be deferred upon shipment to the JV Margin is released when the JV ships the system to the customer Deferred margin is reflected on the Bala
Slide 12: Q1'FY25 Financials
Q1’FY25 Financials Revenues $101.5 (2%) Product $48.4 (9%) Service $53.2 5% Gross Margin 33.9% (4.1%) Op. Expenses $36.6 (2%) Adj. EBITDA 1 $3.1 (52%) KEY FINANCIAL METRICS $M Q1 Y/Y Highlights Strong revenue performance in China with Tomo® C Systems and growth in service business Growth in service
Slide 13: FY25 Revised Guidance
FY25 Revised Guidance Revenue Adjusted EBITDA1 Previous Guidance Range $27.5M - $29.5M +40% - 50% 1 Adjusted EBITDA is a non-GAAP measure. Please see Slide 18 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. $ in millions % = YoY Growth $460M - $470M +3% - 5% Rev
Slide 14: FY2025 Fiscal Focused Priorities
FY2025 Fiscal Focused Priorities Outpace the Market and Grow Customer Base Expand Service and Solutions Recurring Revenue Improve Profitability and Operational Excellence Strengthen Balance Sheet and Cash Flow
Slide 15: ESG at Accuray
ESG at Accuray Reduce cost of treatment through value-based care Expand access in low-income communities and developing countries with Accuray Helix™ and Tomo® C Systems Expanding Access to Healthcare Consistently support local charities (i.e., Habitat for Humanity; Family Giving Tree) Committed to
Slide 16: Thank you
ACCURAY Thank you Proprietary and Confidential Property of Accuray 16
Slide 17: GAAP to Adjusted EBITDA Q1 FY'25 and Q1 FY'24
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended September 30, Three Months Ended September 30, 2023 2024 $ $ $ $ (3,954) 1,464 2,354 2,652 625 3,141 (2,969) 1,251 2,392 2,628 1,932 6,
Slide 18: GAAP to Adjusted EBITDA FY'25 Forward Looking Guidance
$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization To From $ $ $ $ (4,500) 6,500 10,000 13,000 3,000 28,000 (2,500) 6,500 10,000 13,000 3,000 30,000 GAAP to Adjusted EBITDA FY’25 – Forward Looking Guidance
Slide 19: GAAP to Adjusted EBITDA FY2024 and FY2023
$K GAAP net income (loss) Stock-based compensation Interest expense, net Restructuring charges Depreciation and amortization Twelve Months Ended June 30, Twelve Months Ended June 30, 2023 2024 $ $ (15,545) 5,905 9,483 10,676 2,633 3,725 (9,280) 4,527 10,053 10,340 2,738 2,492 ERP and ERP related exp
Slide 20: Gross Margin to Gross Margin Excluding China Margin Impact (FY)
$K Total Net Revenue Gross Profit TT-C China Margin Deferral Gross Margin % excl TT-C China Margin Impact Total Cost of Revenue Twelve Months Ended June 30, Twelve Months Ended June 30, 2023 2024 $ $ 446,551 (303,630) 142,921 (3,031) 32.68% 447,605 (293,645) 153,960 (1,216) 34.67% Gross Profit excl
Slide 21: Gross Margin to Gross Margin Excluding China Margin Impact (Q1)
$K Total Net Revenue Gross Profit TT-C China Margin Deferral Gross Margin % excl TT-C China Margin Impact Total Cost of Revenue Three Months Ended September 30, 2024 $ 101,545 (67,076) 34,469 (1,993) 35.91% Gross Profit excl TT-C China Margin Impact 36,462 Gross Margin to Gross Margin Excluding Chin