Koru Medical Systems, Inc. · NASDAQ:KRMD
Koru Medical Systems — Q4 2024 Earnings Presentation
19 slides from Koru Medical Systems's earnings presentation, Jan 10, 2025
Slide 1: KORU Medical Systems Q4 and FY 2024 Earnings Call
KORU Medical Systems Q4 and FY 2024 Earnings Call March 12, 2025 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 expected growth of recu
Slide 3: Strong Fourth Quarter and Full Year Performance
2024 Results Strong Fourth Quarter and Full Year Performance 1 Record Revenues; Q4 $8.8 million, 23% growth and FY $33.6 million, 18% growth 2 Full Year Core business growth of 16% outperforming overall SCIg market growth and driven by share gains and entry into new geographies 3 Strong Novel Therap
Slide 4: Year of Strong Execution in Strategic Growth Pillars
2024 Results Year of Strong Execution in Strategic Growth Pillars Defend and Grow Add New Drugs on Label Leadership Position in Expand Internationally Through Novel Therapies Domestic SCIg Core Pipeline 1 Continued SCIg market growth International Core performance 15 collaborations in total FY 10% -
Slide 5: 75% Recurring Revenues from a Growing Patient/Infusion Base
Future Catalysts 75% Recurring Revenues from a Growing Patient/Infusion Base $33.6M Total Strong Recurring Base that is Recurring Expected to Grow Non-Recurring $28.5M Total ~2.2M Total 75% of KORU’s revenue is recurring Removing initial 1x sale of pumps and Novel ~1.8M Total Therapies service reven
Slide 6: Expanding International Footprint
Future Catalysts Expanding International Footprint Opportunity for Sustained 20%+ Large Share Left to Capture Within International SCIg Market International Growth Large and underpenetrated KORU holds ~10% market share with significant room for growth ~$60M Expanding KORU Total Addressable Market KO
Slide 7: Potential for Additional 1.2 Million Infusions From New Drugs
Future Catalysts Potential for Additional 1.2 Million Infusions From New Drugs 15 Total Opportunities 7 Commercial Opportunities by 2026 $2.7B1 Addressable Market Combined Immunology New Indications/New Devices Drug Trial Expected KRMD Patient Asset Phase Next Step Clearance2 Population (000s) Oppor
Slide 8: Q4 Y/Y Revenue by Business
Financials Q4 Y/Y Revenue by Business Net Revenues; In Millions Domestic Core • Increased 20% y/y • Outpaced SCIg market growth $8.8 • Driven by growth in consumable and pump 23% $0.7 volumes as a result of new patient starts and market share gains $7.2 $1.5 $0.3 International Core $1.3 • Increased
Slide 9: 2024 Y/Y Revenue by Business
Financials 2024 Y/Y Revenue by Business Net Revenues; In Millions Domestic Core • Increased 12% y/y • Outpaced SCIg market growth • Driven by growth in consumable and pump $33.6 volumes driven by share gains in new and existing 18% $2.4 accounts $28.5 $1.5 $6.0 International Core $4.6 • Increased 32
Slide 10: Improved Gross Margin Profile
Financials Improved Gross Margin Profile Driving y/y Margin Improvement with Gross Margin Consistent Performance >60% Fourth Quarter: 62.9% • 260 basis points improvement y/y • Driven by manufacturing efficiencies and favorable customer sales mix 65.0% 63.4% 480 Full Year: 63.4% +60% 62.9% bps 63.4%
Slide 11: Strong 2024 Year-End Cash Balance
Financials Strong 2024 Year-End Cash Balance Cash Balance as of December 31, 2024: $9.6M Key Drivers • Q4 cash gain of $0.8M +$1.6M +$9.6M • Net loss of ~($1.6M) $8.8M ($1.6M) +$1.0M • Investments of ($0.3M) for next ($0.3M) generation consumables production line. • Working Capital changes of $1.6M
Slide 12: Approaching Operational Cash Flow Breakeven
Financials Approaching Operational Cash Flow Breakeven Consecutive years of lower cash usage Key Drivers • Substantially reduced y/y cash burn with cash usage of $1.9M, a 68% improvement over 2023 • Key contributors in 2024: • Lower net losses driven by higher revenues, higher gross ($1.9M) margin,
Slide 13: Strong Performance Across P&L and Balance Sheet
Financials Strong Performance Across P&L and Balance Sheet 2024 Financial Highlights 2024 2023 Y/Y Δ Revenue $33.6M $28.5M 18% growth Gross Margin 63.4% 58.6% 480bps growth OpEx $27.8M $27.0M 3% increase Net Loss ($6.1M) ($13.7M)* 56% improvement Adj. EBITDA ($2.5) ($6.0) 59% improvement EPS ($0.13)
Slide 14: Renaming Novel Therapies Business: Pharma Services & Clinical Trials
Business Name Change FY2024 REVENUES Renaming Novel Therapies Business: $33.6M Pharma Services & Clinical Trials 75% Domestic Core International Core 7% Pharma Services & Clinical Trials 18% • Starting with 1Q25 earnings report • Pharma Services and Clinical Trials: better Pharma Services and Domest
Slide 15: 2025 Guidance
Outlook 2025 Guidance Revenue Gross Margin Cash Flow Growth Profile Generation Revenue guidance of Gross margins Operational cash flow $38.0-$39.0M, between 61-63% positive for the full 13-16% growth year 2025 Key Drivers/Milestones Key Drivers/Milestones Key Drivers/Milestones • Sustained 8-10% SCI
Slide 16: New Product Launches: Catalysts for SCIg Share Gains and New Market Entries
Outlook New Product Launches: Catalysts for SCIg Share Gains and New Market Entries Flow Controller New Consumables Sets Next Generation Pump Phase 1 (Line extension) • 510k submission in 2H25 • 510k submission (4Q25-1Q26) • Q3 Launch • Improved patient comfort and • Accommodates all available PFS •
Slide 17: Key 2025 Milestones
Outlook Key 2025 Milestones Financial Targets and Guidance • $38-39M ; mid teens growth • Operational cash flow positive for FY2025 • Adj. EBITDA growth, higher gross profit, increased operating leverage Add New Drugs to Label through Novel Therapies Pipeline • 3 new pharmaceutical collaborations (2
Slide 18: Appendix
Appendix 18
Slide 19: 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