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Sep 30, 2024

Nuwellis Q3 2024 Earnings Report

Nuwellis reported a net income due to warrant liability revaluation and achieved a gross margin increase and operating cost reduction.

Key Takeaways

Nuwellis, Inc. reported third quarter 2024 financial results with a revenue of $2.4 million. The company achieved a gross margin of 70% and reduced total operating costs by 30% compared to the prior-year quarter. Net income attributable to common shareholders was $2.4 million, primarily due to the revaluation of a prior period warrant liability.

Revenue was $2.4 million.

Pediatrics revenue grew by 28% compared to the prior year quarter.

Gross margin increased to 70% compared to 57.3% in the prior-year quarter.

Total operating costs decreased by 30% compared to the prior-year quarter.

Total Revenue
$2.37M
Previous year: $2.41M
-1.9%
EPS
-$1.13
Previous year: -$63.4
-98.2%
Gross Margin
70%
Previous year: 57.3%
+22.2%
Gross Profit
$1.66M
Previous year: $1.38M
+19.9%
Cash and Equivalents
$1.9M
Previous year: $4.93M
-61.5%
Free Cash Flow
-$2.46M
Previous year: -$3.95M
-37.8%
Total Assets
$6.73M
Previous year: $11.4M
-41.1%

Nuwellis

Nuwellis

Forward Guidance

The company anticipates continued growth and market adoption of Aquadex ultrafiltration therapy, supported by clinical evidence and favorable reimbursement changes.

Positive Outlook

  • CMS reimbursement increase expected to expand the outpatient marketplace.
  • New clinical study supports reduction in heart failure readmissions.
  • Momentum with new accounts opening due to increasing awareness of Aquadex efficacy.
  • Aquadex is becoming the standard of care for fluid removal.
  • Gross proceeds received through warrant exercises will support operations.

Challenges Ahead

  • Year-over-year revenue decrease due to decreased consumables utilization.
  • Decrease in US console sales.
  • Company is still loss from operations.
  • Forward-looking statements are subject to risks and uncertainties.
  • Company's ability to execute on commercialization strategy is subject to risks.