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Dec 31, 2024
Outset Medical Q4 2024 Earnings Report
Outset Medical reported its financial results for the fourth quarter and full year ended December 31, 2024.
Key Takeaways
Outset Medical delivered a solid fourth quarter, exceeding prior guidance for revenue and significantly improving gross margin. The company saw strong recurring revenue growth driven by increased utilization of its Tablo system, positioning it for positive momentum into 2025.
Net revenue for Q4 2024 was $29.5 million, surpassing prior guidance.
Gross margin improved significantly to 36.5% (37.7% non-GAAP) in Q4 2024, up from 25.3% in Q4 2023.
Recurring revenue, including Tablo consumables and services, grew 17% year-over-year in Q4 2024.
Operating expenses decreased by 28% from the prior-year period, reflecting efforts to streamline operations and accelerate profitability.
Outset Medical
Outset Medical
Outset Medical Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService and Other Revenue
CapyFin.com Forward Guidance
Outset Medical provided 2025 revenue guidance between $115 million and $125 million, and non-GAAP gross margin guidance in the high-30% range. The company also expects to use less than $50 million of cash in 2025.
Positive Outlook
- Projected revenue growth for 2025.
- Anticipated improvement in non-GAAP gross margin.
- Expected reduction in cash usage for 2025 compared to 2024.
- Continued focus on supporting customers and driving meaningful growth.
- Strengthened balance sheet positioning for cash flow breakeven.
Challenges Ahead
- Revenue guidance range is broad, indicating potential variability.
- Continued cash usage, though reduced, still indicates a need for further financial optimization.
- Macroeconomic factors could impact the company's performance.
- Regulatory actions from the FDA or other bodies could affect operations.
- Competition in the medical technology market could pose challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income