Sofwave Medical Reports First Quarter 2024 Financial Results and Business Highlights

• First quarter revenue of $13.2M, +27% year-over-year growth; IFRS gross margin of 75.2%
• First quarter pulse recurring revenue of $4.7M, +118% year-over-year growth   
• IFRS and non-IFRS operating loss narrowed to -$1.0M and -$0.4M, respectively; company approaching breakeven
  

SAN CLEMENTE, Calif., May 09, 2024 (GLOBE NEWSWIRE) -- Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive, aesthetic medical devices for practitioners worldwide, reported financial results for the first quarter of fiscal year 2024, for the period ended March 31, 2024, and recent business highlights.

First Quarter Fiscal 2024 Financial Highlights

• First Quarter Revenue of $13.2M; representing 27% year-over-year growth
  • Recurring Revenue of $4.7M, a year-over- year increase of 118%, representing 36% of total revenue
  • Gross Profit was $9.9M, a year-over-year increase of 29%
  • IFRS Gross Margin: 75.2%; *Non-IFRS 75.4%
  • IFRS Operating Loss: $1.0M; down from $3.7 million in first quarter of 2023; *Non-IFRS Operating Loss: $0.4M
• Cash and Cash Equivalents as of March 31, 2024: $23.1M, Cash used in the first quarter of 2024 of $1.3M down from $3.0M in the first quarter of 2023.

Management Commentary
Mr. Louis Scafuri, Sofwave CEO, commented, “We continue to experience significant tailwinds for our disruptive technology and unique business model, as demonstrated by the 27% top-line growth generated in the first quarter of 2024. Of significance, recurring pulse sales are an increasingly significant contributor to our strong financial results, with recurring pulse sales representing more than one third of our total first quarter revenue. We believe this is indicative of both the substantial customer satisfaction rate associated with our innovative and highly effective SUPERB technology, as well as our ability to drive relationships and utilization within our growing customer base. Our goal is for our customers to demonstrate long-term success with our platform of products, above and beyond the one-time capital equipment sale. Looking towards the rest of the year, we intend to drive further brand awareness through our expanding business-to-consumer engagement campaigns and via our panel of leading physician KOLs and influencers. We are also reinforcing our goal for operational break-even on a full year basis in 2024.”