iCAD Pre-Announces Estimated Q4 2024 Revenue

Rhea-AI Summary

iCAD has released preliminary, unaudited financial results for Q4 2024. The company expects total revenue to be between $5.1 million and $5.3 million. Total Annual Recurring Revenue (T-ARR) reached $9.8 million, showing an 11% year-over-year increase.

During Q4 2024, iCAD closed 106 deals, including 19 cloud deals with both new and existing customers. The company will participate in the BTIG at Snowbird Conference from February 11-12, 2025, where management will hold one-on-one meetings with investors. The full audited results for Q4 and year-end 2024 will be announced in March 2025.

Positive

• 11% year-over-year growth in Total Annual Recurring Revenue (T-ARR) to $9.8 million
• Strong deal closure with 106 total deals in Q4, including 19 cloud deals
• Expected Q4 revenue of $5.1-5.3 million

Negative

• None.

Insights

Financial Analyst

The preliminary Q4 2024 results from iCAD present a mixed picture for investors. The projected revenue range of $5.1-5.3 million suggests relatively modest quarterly performance for a medical AI company. However, the more telling metric is the Total Annual Recurring Revenue (T-ARR) of $9.8 million, showing an 11% year-over-year growth, which indicates steady progress in building a more predictable revenue stream.

The closure of 106 deals in Q4, including 19 cloud-based transactions, reflects the company's strategic pivot toward a cloud-based delivery model. This transition is important for several reasons:

• Cloud deals typically generate higher margins and more predictable revenue streams
• The shift aligns with broader healthcare industry trends toward cloud-based AI solutions
• Recurring revenue models generally command higher valuation multiples

However, investors should note that with a market cap of approximately $63 million, the company's enterprise value to recurring revenue multiple appears relatively high, suggesting current valuation may be pricing in significant future growth expectations. The timing of this pre-announcement, ahead of the full audited results in March, could indicate management's desire to provide transparency, though the modest revenue figures might explain why this update was packaged with the conference participation announcement.

The growth in recurring revenue, while positive, needs to accelerate for iCAD to establish a stronger position in the competitive AI-powered healthcare diagnostics market. The company's focus on breast health solutions represents a specific niche, but the relatively small revenue base suggests it hasn't yet achieved the scale needed for sustainable profitability.

iCAD to Participate in the BTIG at Snowbird:
12^th Annual MedTech, Digital Health, Life Science & Diagnostic Tools Conference

NASHUA, N.H., Jan. 27, 2025 (GLOBE NEWSWIRE) -- iCAD, Inc. (NASDAQ: ICAD) (“iCAD” or the “Company”), a global leader on a mission to create a world where cancer can’t hide by providing clinically proven AI-powered breast health solutions, today reported select preliminary, unaudited financial results for the fourth quarter of 2024. Based on preliminary, unaudited financial information, the Company expects total revenue for the fourth quarter of 2024 to be between approximately $5.1 and approximately $5.3 million. Total Annual Recurring Revenue (T-ARR) was approximately $9.8 million, up 11% year-over-year. In the fourth quarter of 2024, the Company closed 106 deals, 19 of which were cloud deals with both new and established customers.

iCAD also announces it will participate in the BTIG at Snowbird: 12th Annual MedTech, Digital Health, Life Science & Diagnostic Tools Conference from February 11-12, 2025, in Snowbird, Utah. Dana Brown, Chief Executive Officer, and Eric Lonnqvist, Chief Financial Officer, of iCAD will participate in one-on-one meetings with investors at the event. To request a meeting with iCAD, investors should contact their BTIG representative.

iCAD’s consolidated financial statements for the twelve months ended December 31, 2024, are not yet available, and full audited results for the fourth quarter and year ended December 31, 2024 will be announced in March 2025.

The preliminary estimated financial information included in this press release for the fourth quarter ended December 31, 2024 is based solely on management’s estimates reflecting currently available preliminary information, and remains subject to iCAD’s consideration of subsequent events, particularly as it relates to material estimates and assumptions used in preparing our consolidated financial statements for the twelve months ended December 31, 2024. iCAD’s final consolidated financial results as of and for the three months ended December 31, 2024 may differ materially from estimates and the interim balances set forth in this release. Furthermore, the information presented herein does not include all information necessary for an understanding of the Company’s full fiscal year ended December 31, 2024.

Use of Non-GAAP Financial Measures
In its news releases, conference calls, slide presentations or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. When analyzing the Company’s operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP. The Company’s quarterly news releases containing such non-GAAP reconciliations can be found on the Investors section of the Company’s website at www.icadmed.com

About iCAD
iCAD, Inc. (NASDAQ: ICAD) is a global leader on a mission to create a world where cancer can’t hide by providing clinically proven AI-powered solutions that enable medical providers to accurately and reliably detect cancer earlier and improve patient outcomes. Headquartered in Nashua, N.H., iCAD’s industry-leading ProFound Breast Health Suite provides AI-powered mammography analysis for breast cancer detection, density assessment and risk evaluation. The ProFound Breast Health Suite is cleared by the U.S. Food & Drug Administration (FDA) and has received CE mark and Health Canada licensing. Used by thousands of providers serving millions of patients, ProFound is available in over 50 countries. In the last five years alone, iCAD estimates reading more than 40 million mammograms worldwide, with nearly 30% being tomosynthesis. For more information, visit www.icadmed.com.

Forward-Looking Statements
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the Company’s financial results, expansion of access to the Company’s products, improvement of performance, acceleration of adoption, expected benefits of ProFound AI^®, the benefits of the Company’s products, and future prospects for the Company’s technology platforms and products. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited, to the Company’s ability to achieve business and strategic objectives, the willingness of patients to undergo mammography screening in light of risks of potential exposure to illnesses including Covid-19, whether mammography screening will be treated as an essential procedure, whether ProFound AI will improve reading efficiency, improve specificity and sensitivity, reduce false positives and otherwise prove to be more beneficial for patients and clinicians, the impact of supply and manufacturing constraints or difficulties on our ability to fulfill our orders, uncertainty of future sales levels, to defend itself in litigation matters, protection of patents and other proprietary rights, product market acceptance, possible technological obsolescence of products, increased competition, government regulation, changes in Medicare or other reimbursement policies, risks relating to our existing and future debt obligations, competitive factors, the effects of a decline in the economy or markets served by the Company; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “believe,” “demonstrate,” “intend,” “expect,” “estimate,” “will,” “continue,” “anticipate,” “likely,” “seek,” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. For additional disclosure regarding these and other risks faced by iCAD, please see the disclosure contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.

Media Inquiries:
pr@icadmed.com

Investor Inquiries:
ir@icadmed.com 

FAQ

What is iCAD's expected revenue for Q4 2024?

iCAD expects total revenue for Q4 2024 to be between approximately $5.1 and $5.3 million, based on preliminary, unaudited financial information.

How much did iCAD's Total Annual Recurring Revenue (T-ARR) grow in Q4 2024?

iCAD's T-ARR reached approximately $9.8 million, representing an 11% increase year-over-year.

How many deals did ICAD close in Q4 2024?

iCAD closed 106 deals in Q4 2024, with 19 of them being cloud deals with both new and established customers.

When will ICAD release its full audited results for Q4 and year-end 2024?

iCAD will announce its full audited results for the fourth quarter and year ended December 31, 2024, in March 2025.