Radnet Q1 2024 Earnings Report
Key Takeaways
RadNet reported a strong first quarter with record revenue of $431.7 million, a 10.5% increase compared to the previous year. The company experienced growth in both its Imaging Center and Digital Health segments, with Digital Health revenue increasing by 32.3%. RadNet also revised upwards its 2024 guidance for revenue, Adjusted EBITDA, and Free Cash Flow.
Total Company Revenue grew 10.5% year-over-year to a record $431.7 million.
Digital Health segment Revenue increased 32.3% year-over-year to $14.7 million, driven by a 118% increase in AI Revenue.
Adjusted EBITDA margins increased by 120 basis points over the prior year's first quarter.
The company revised upwards its 2024 guidance ranges for Revenue, Adjusted EBITDA and Free Cash Flow.
Radnet
Radnet
Forward Guidance
RadNet has revised upwards certain guidance levels in anticipation of financial results that are expected to exceed original expectations. Most significantly, the company has increased 2024 guidance ranges for Revenue, Adjusted EBITDA, and Free Cash Flow.
Positive Outlook
- Strong growth is sustainable as the company continues to execute on various initiatives.
- Expansion of capacity through the development and construction of new imaging centers is underway, with approximately a dozen new centers expected to open by year end 2024.
- Working with prospective and existing health system partners to expand joint venture offerings.
- Digital Health initiatives continue to expand, including the further rollout of the EBCD program along with other clinical AI for lung and prostate cancers.
- Development of DeepHealth OS technology platform is driving toward implementation within RadNet beginning in the third quarter of this year and within external customers as early as the first quarter of 2025.