Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q3 2024 Earnings Presentation
15 slides from Koru Medical Systems's earnings presentation, Nov 13, 2024
Slide 1: KORU Medical Systems Q3 2024 Earnings Call
KORU Medical Systems Q3 2024 Earnings Call November 13, 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 the existence and timing of
Slide 3: Strong Third Quarter Execution
Strong Third Quarter Execution 1 17% y/y revenue growth for Q3, third consecutive quarter of double-digit growth 2 Core business y/y growth of 11%, driven by outpacing SCIg market growth and new geographic entries 3 Strength in Novel Therapies driven by an increased number of new collaborations and
Slide 4: Progress on Strategic Growth Pillars
Progress on Strategic Growth Pillars Protect and Grow Broaden our relevance with Expand Internationally Domestic Core SCIg Business Novel Therapies Domestic Core growth International Core growth 16 collaborations in total 12% y/y growth; YTD 10% growth 5% y/y growth; YTD 38% growth 3 signed in 2024,
Slide 5: New KORU Drug Collaboration Launches Expected by 2026
6 New KORU Drug Collaboration Launches Expected by 2026 $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 Oncolog
Slide 6: 97% of Nurses Prefer KORU Freedom System For Subcutaneous Oncology Infusion
97% of Nurses Prefer KORU Freedom System For Subcutaneous Oncology Infusion1 Nursing Preference Study: FreedomEdge® vs Manual Syringe Administration Over 3,000 patients in 6 hospitals received KORU FreedomEdge® infusions from 33 nurses who had previously administered the same >10mL drug via manual p
Slide 7: Q3 Y/Y Revenue by Business
Q3 Y/Y Revenue by Business Net Revenues; In Millions Domestic Core • Increased 12% y/y; 10% YTD growth • Outpaced Ig market growth $8.2 17% • Driven by higher consumable and pump volumes, $0.6 new patient starts, and continued account $7.0 penetration $0.2 $1.12 $1.06 International Core • Increased
Slide 8: Improved Gross Margin Profile
Improved Gross Margin Profile Driving y/y margin improvement with Gross Margin consistent performance >60% Third Quarter: 63.4% • Gross margins consistently >60% • 140 basis points improvement y/y 140 bps • Driven by improved NRE margins from insourcing engineering activities +60% 63.4% 62.3% 65.0%
Slide 9: Improved Cash Management/Operating Leverage
Improved Cash Management/Operating Leverage Cash Balance as of September 30, 2024: $8.8M Key Drivers • Cash usage of $1.7M, in line with $10.5M ($0.8M) expectations ($0.7M) ($0.2M) $8.8M • Net loss of ~($0.8M), excluding non-cash items* • Investing / Financing Activities driven by capital purchases
Slide 10: On Track to Reach Cash Flow Breakeven
On Track to Reach Cash Flow Breakeven Cash burn improving with expected 2024 ending cash balance of Key Drivers ≥$8.8M • Substantially reduced y/y cash burn with YTD cash usage of $2.7M, a $17.4M 60% improvement over 2023 ($5.9M) • Key contributors: • Lower net losses driven by $11.5M ($2.7M) higher
Slide 11: Strong Year-To-Date Execution Down the P&L
Strong Year-To-Date Execution Down the P&L YTD Q3 Financial Highlights Metric YTD ‘24 YTD ‘23 Y/Y Δ Revenue $24.8M $21.3M 16.3% growth Gross Margin 63.6% 58% 560bps growth OpEx $20.6M $20.4M 1% increase Net Loss ($4.5M) ($6.3M) 28% improvement EPS ($0.10) ($0.14) 29% improvement Cash Burn ($2.7M) ($
Slide 12: Raising 2024 Guidance
Raising 2024 Guidance Revenue Gross Margin Cash & Growth Profile Cash Flow Increased to Increased to 62-63%2 Increased to greater $32.75-$33.25M, than $8.8M ending 15-17% growth1 cash balance3 Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • SCIg drug market growth of • Favorab
Slide 13: Continued Progress on Vision 26 Key Milestones
Continued Progress on Vision 26 Key Milestones Double-digit revenue growth versus FY2023 Accelerating Core growth with new patient starts, share gains, and continued International expansion Progressing Novel Therapies pipeline with 6 potential commercial launches by 2026 – continued focus on late-st
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the non-GAAP financial measures “adjusted EPS”, "adjusted diluted EPS“, and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by othe