Executive Summary
Beyond Air reported a modest sequential revenue uptick in QQ4 2024 driven by ongoing LungFit PH upgrades and the ramp of new hospital engagements, but the quarter remained loss-making on a gross and operating basis. Management emphasized capital preservation and a deliberate upgrade/testing cycle with existing customers prior to broader market expansion. The company disclosed plans to reduce operating costs and slow R&D spend to extend its cash runway, while signaling a near-term revenue ramp anchored in new hospital placements rather than renewals alone. Major catalysts discussed include the FDA PMA supplement for cardiac surgery (expected in calendar Q4 2024) and the CE Mark process for LungFit PH, which would unlock Getz Healthcare milestone payments and subsequent Asia Pacific commercialization. The fiscal 2025 revenue target was modestly revised to >$10 million, highlighting the challenge of near-term growth but the potential for a stronger second half if pipeline conversion improves. Together, these dynamics imply a staged but potentially meaningful re-acceleration in 2H FY2025 if regulatory, channel, and commercial execution milestones align.
Key Performance Indicators
QoQ: 24.95% | YoY:-66.56%
Key Insights
Revenue (Q4 2024): $0.47m, QoQ +20.2%; Gross profit: -$0.513m, gross margin -1.09%; EBITDA: -$12.898m, EBITDA margin -27.44%; Operating income: -$12.634m, margin -26.88%; Net income: -$13.707m, net margin -29.16%; EPS: -$0.18; R&D: $5.699m; G&A: $6.422m; SG&A: $0.326m (selling) leading to total operating expenses of $12.121m; Net cash burn from operations: -$10.726m; Free cash flow: -$12.657m; Cash at end of period: $11.608m; Cash & investments: $34.698m; Total debt: $17.837m; Ne...
Financial Highlights
Revenue (Q4 2024): $0.47m, QoQ +20.2%; Gross profit: -$0.513m, gross margin -1.09%; EBITDA: -$12.898m, EBITDA margin -27.44%; Operating income: -$12.634m, margin -26.88%; Net income: -$13.707m, net margin -29.16%; EPS: -$0.18; R&D: $5.699m; G&A: $6.422m; SG&A: $0.326m (selling) leading to total operating expenses of $12.121m; Net cash burn from operations: -$10.726m; Free cash flow: -$12.657m; Cash at end of period: $11.608m; Cash & investments: $34.698m; Total debt: $17.837m; Net debt: $6.229m; Current ratio: 3.80; Quick ratio: 3.61; Current story: impact of device upgrades and pipeline-driven growth despite negative margins.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
470.00K |
N/A |
20.20% |
| Gross Profit |
-513.00K |
-66.56% |
24.95% |
| Operating Income |
-12.63M |
5.96% |
25.52% |
| Net Income |
-13.71M |
32.03% |
15.49% |
| EPS |
-0.18 |
N/A |
28.00% |
Key Financial Ratios
grossProfitMargin
-109.1%
operatingProfitMargin
-2688%
operatingCashFlowPerShare
$-0.14
freeCashFlowPerShare
$-0.17
Management Commentary
- Strategy and product cadence: Management linked sequential revenue strength to the ongoing upgrade/testing of LungFit PH and future installations. - Commercial leadership: Appointment of David Webster as Chief Commercial Officer to accelerate market penetration. - Regulatory and regulatory timing: PMA supplement for cardiac surgery under FDA review with an expected decision in 4Q2024; CE Mark timing to be clarified but believed to be impactful for Europe/Asia channels. - Capital preservation: Headcount reduction >20% in June quarter to slow cash burn; emphasis on preserving runway. - Litigation: Ongoing Airgas breach-of-contract suit disclosed, adding an element of near-term legal risk.
Forward Guidance
Management guided to FY2025 revenue of >$10 million, down from prior $12–16 million range, reflecting near-term execution headwinds and milestone delays. The company expects a ramp in the pipeline through the next nine months with a new Commercial Officer leading the team and a continued focus on existing customer upgrades before broad-based market expansion. Key catalysts to watch include: (1) FDA PMA supplement decision for cardiac surgery (targeted in 2H2024 calendar year), (2) CE Mark progression and Getz Healthcare milestone payments, (3) potential European and Asia-Pacific commercial deployment, and (4) the cadence of new hospital signings. Risks include regulatory delays, execution risk in converting pipeline to revenue, and continued cash burn until revenue scale improves. Investors should monitor quarterly pipeline quality, milestone timing for PMA/CE, and the company’s ability to close new hospital contracts that meaningfully uplift quarterly revenue.