Exchange: NASDAQ | Sector: Healthcare | Industry: Medical Instruments Supplies
Q1 2025
Published: Oct 3, 2024
Earnings Highlights
Revenue of $67.49M down 14.2% year-over-year
EPS of $-0.31 decreased by 127% from previous year
Gross margin of 54.4%
Net income of -12.80M
"Jim Clemmer: 'Auryon continued to deliver outstanding results, growing 25%... We received CE mark approval for Auryon, which is a significant milestone.'" - Jim Clemmer
AngioDynamics Inc (NASDAQ: ANGO) kickstarted fiscal Q1 2025 with a revenue of $67.5 million, reflecting a modest growth of 1.1% year-over-year. The increase was largely driven by strong performance in the MedTech segment, which reported 9% growth spurred by the success of Auryon and AlphaVac products, both of which saw substantial revenue increases. However, the company reported an adjusted EBITDA loss of $200K and a net loss of $12.8 million, signaling ongoing challenges in attaining profitability despite sales growth. Management emphasized continued focus on enhancing operational efficiency and expanding product offerings as pathways toward improving margins and achieving a breakeven cash flow status in the fiscal 2026. Overall, while there are promising growth drivers within the product portfolio, the company still faces significant hurdles in managing costs and achieving sustained profitability.
Key Performance Indicators
Revenue
67.49M
QoQ: -4.92% | YoY:-14.22%
Gross Profit
36.72M
54.41% margin
QoQ: 2.18% | YoY:-8.33%
Operating Income
-13.10M
QoQ: -125.63% | YoY:-137.39%
Net Income
-12.80M
QoQ: 4.84% | YoY:-127.89%
EPS
-0.31
QoQ: 6.06% | YoY:-126.96%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $67.5 million, a year-over-year increase of 1.1% driven primarily by MedTech segment growth.
**Gross Profit:** $36.7 million, translating to a gross margin of 54.4%, down from 54.8% a year prior.
**Net Income:** Net loss of $12.8 million or -$0.31 per diluted share, compared to -$6.4 million or -$0.16 per diluted share in the previous year.
**Operating Cash Flow:** Utilized $18.3 million. Despite losses, cash at quarter-end stood at $55 million, down from $76 million at the start of the quarter.
**Debt Profile:** Zero debt, demonstrating a strengthened balance sheet position relative to previous debt burdens with $50 million at the start of fiscal 2024.
Financial Highlights
Key Financial Metrics for Q1 2025
- Revenue: $67.5 million, a year-over-year increase of 1.1% driven primarily by MedTech segment growth.
- Gross Profit: $36.7 million, translating to a gross margin of 54.4%, down from 54.8% a year prior.
- Net Income: Net loss of $12.8 million or -$0.31 per diluted share, compared to -$6.4 million or -$0.16 per diluted share in the previous year.
- Operating Cash Flow: Utilized $18.3 million. Despite losses, cash at quarter-end stood at $55 million, down from $76 million at the start of the quarter.
- Debt Profile: Zero debt, demonstrating a strengthened balance sheet position relative to previous debt burdens with $50 million at the start of fiscal 2024.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
67.49M
-14.22%
-4.92%
Gross Profit
36.72M
-8.33%
2.18%
Operating Income
-13.10M
-137.39%
-125.63%
Net Income
-12.80M
-127.89%
4.84%
EPS
-0.31
-126.96%
6.06%
Key Financial Ratios
currentRatio
2.25
grossProfitMargin
54.4%
operatingProfitMargin
-19.4%
netProfitMargin
-19%
returnOnAssets
-4.36%
returnOnEquity
-6.51%
debtEquityRatio
0.02
operatingCashFlowPerShare
$-0.45
freeCashFlowPerShare
$-0.48
priceToBookRatio
1.54
priceEarningsRatio
-5.92
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management Commentary Highlights
- Jim Clemmer (CEO) noted, "We had a very solid first quarter. Total worldwide revenue was $67.5 million, representing growth of just over 1% year-over-year in line with our expectations."
- On profitability, Clemmer said, "Outside of our financial performance, we continued to execute on our key 2025 catalysts, including new product launches and regulatory milestones."
- Steve Trowbridge (CFO) emphasized the need for operational improvements, stating, "Our revenue for the first quarter of FY 2025 increased 1.1% year-over-year... We continue to expect revenue will be in the range of $282 million to $288 million for FY 2025, representing growth of between 4.2% and 6.4%."
Jim Clemmer: 'Auryon continued to deliver outstanding results, growing 25%... We received CE mark approval for Auryon, which is a significant milestone.'
— Jim Clemmer
Steve Trowbridge: 'Adjusted net loss for Q1 FY 2025 was $4.4 million, an adjusted net loss per share of $0.11, compared to an adjusted net loss of $6.2 million... improving operating leverage.'
— Steve Trowbridge
Forward Guidance
Management is reaffirming its revenue guidance for FY 2025, projecting total sales in the range of $282 million to $288 million. The MedTech segment is expected to grow between 10% to 12% while the Med Device segment is targeted for 1% to 3% growth. They anticipate achieving breakeven adjusted EBITDA by the end of FY 2026, supported by the transition to outsourced manufacturing which is projected to save approximately $15 million annually by FY 2027.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ANGO Focus
54.41%
-19.40%
-6.51%
-5.92%
NSTG
36.10%
-1.13%
-3.03%
-2.82%
ATRI
26.10%
6.64%
1.15%
64.42%
ATR
29.30%
12.60%
3.54%
28.28%
KRMD
59.40%
-23.90%
-10.10%
-14.17%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given AngioDynamics' current financial standing with a solid balance sheet and a robust product pipeline, the investment thesis hinges on the successful execution of growth strategies, maintaining operational efficiencies, and managing cash flows effectively. While risks are present, particularly regarding profitability and cash burn issues, the company’s strategic initiatives to expand in new markets and introduce innovative products could create a favorable environment for long-term growth, especially as they aim for breakeven cash flows by FY 2026.
Key Investment Factors
Growth Potential
AngioDynamics' strategic investments in MedTech segments and successful product rollouts, particularly Auryon and AlphaVac, position the company well for future growth. The expansion into European markets also offers significant potential.
Profitability Risk
Ongoing operational losses and cash burn present a risk, alongside potential regulatory challenges regarding product approvals and reimbursement paths, particularly for NanoKnife.
Financial Position
With $55 million in cash and zero debt, AngioDynamics maintains a strong balance sheet, but the company must curtail cash burn to reach long-term sustainability.
SWOT Analysis
Strengths
Strong product portfolio with high growth rates in MedTech segment
Diverse customer base including key segments in healthcare
Strong pipeline with planned new launches and regulatory approvals
Weaknesses
Continued operational losses and negative cash flow
Dependence on a few key products for revenue generation
Recent history of divestitures raising concerns on strategic direction
Opportunities
Expanding into European markets with Auryon
Potential growth from new product launches in the oncology sector
Increase in demand for minimally invasive surgical solutions post-COVID
Threats
Intense competition in the medical device market
Regulatory challenges affecting product approvals
Economic downturns or changes in healthcare spending affecting revenues