In the third quarter of 2024, Medicalgorithmics focused on increasing service sales and acquiring new clients, in line with its strategic plan. During this period, service sales revenue reached PLN 5.2 million, with U.S. market revenues rising by 24% compared to the second quarter, reaching PLN 1.2 million. This represents a recovery of 53% of the revenue from Q4 2023. Since adopting the new growth strategy, the company has gained 13 new clients. The management expects to secure a significant client in the U.S. by the end of this year and achieve positive cash flows in the second half of 2025.
“We are consistently executing our growth strategy, gradually increasing service sales in the key U.S. market, developing our flagship products, and acquiring new clients. The results, especially for the U.S. market, demonstrate that our strategy is effective. We anticipate continued and systematic growth in the coming periods, leading to positive cash flows in the second half of 2025,” says Maciej Gamrot, Board Member of Medicalgorithmics responsible for finance.
Medicalgorithmics’ consolidated revenue in Q3 2024 was PLN 5.2 million, compared to PLN 5.9 million in Q2 2024. The decline was primarily due to the absence of non-recurring device sales revenue, which totaled PLN 13,000 in Q3 compared to PLN 488,000 in the previous quarter. Despite this, the company significantly improved its operating result, reporting a loss of PLN 1.7 million compared to a loss of PLN 5.1 million in Q2.
“With our developing revenue streams and financing from BioFund, we have the flexibility to implement our strategy, both in terms of increasing sales and advancing our technology,” adds Maciej Gamrot.
The global market (excluding the U.S.) continued to generate higher revenue than the American market, with PLN 4.0 million and PLN 1.2 million in revenues, respectively. According to the current strategy, the company focuses on selling high-margin diagnostic software, while device sales are offered as an optional service for clients.
“Rebuilding 53% of our U.S. revenues is a huge success, especially considering that in January this year we had zero revenue from this market after ending our collaboration with React in Q4 2023. We are now intensively working on expanding service sales in this market and acquiring new partners, with whom we operate non-exclusively. As a result of these efforts, we achieved a 24% quarter-over-quarter growth and have onboarded five new IDTFs,” says Maciej Gamrot.
During the reported period, the Warsaw Stock Exchange-listed medtech company conducted 72,400 sessions for its clients, a 2.5% increase compared to Q2 2024 (70,600 sessions). This figure has been rising for four consecutive quarters. Compared to Q3 2023, the number of sessions has increased 2.2 times.
In line with the development strategy announced in June 2023, created in collaboration with Medicalgorithmics’ major shareholder Biofund Capital Management LLC, the company has transformed its business model. It moved away from offering a closed cardiology diagnostics system tied to its own heart monitoring devices. The new strategy focuses on selling a multi-day ECG analysis platform with proprietary AI algorithms as a standalone product, integrated with partners’ devices and IT systems. Medicalgorithmics’ software can be licensed by clients, and the company will receive payments through various models, including per-analysis fees for ECG data.
Source: Manager Plus
