• Revenue: $3.0 million for the reported period, compared to $2.4 million in the comparable period.
• Net Loss: $14.1 million for the fourth quarter of 2024, compared to $10.2 million in the fourth quarter of 2023.
• Gross Loss: $2.9 million on a GAAP basis for the reported period, compared to $1.7 million in the comparable period.
• Non-GAAP Gross Loss: $0.3 million for the reported period, compared to a gross profit of $0.9 million in the comparable period.
• Teleradiology Services Revenue: $2.8 million with a gross profit of $0.6 million on a GAAP basis for the reported period.
• Non-GAAP Gross Profit Margin for Teleradiology: 41% for the reported period, compared to 38% in the comparable period.
• Imaging System Revenue: $136,000 for the reported period, with a gross loss of $1.5 million on a GAAP basis.
• AI Solutions Revenue: $83,000 with a gross loss of $2.0 million on a GAAP basis for the reported period.
• Research and Development Expenses: $5.4 million for the reported period, compared to $6.8 million in the comparable period.
• Sales and Marketing Expenses: $0.9 million for the reported period, compared to $1.0 million in the comparable period.
• General and Administrative Expenses: $5.8 million for the reported period, compared to $3.8 million in the comparable period.
• Cash and Equivalents: Approximately $83.5 million as of December 31, 2024.
• Shares Outstanding: Approximately 63.8 million as of December 31, 2024.

• Warning! GuruFocus has detected 1 Warning Sign with NNOX.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nano X Imaging Ltd (NASDAQ:NNOX) achieved significant regulatory milestones, including FDA general use clearance and CE mark designation for the Nanox.ARC system.
• The company is expanding its market presence in the US and Europe, with new distribution agreements and strategic partnerships.
• Positive feedback from initial customers and early adopters of the Nanox.ARC system indicates strong market interest and potential for growth.
• The company's AI solutions are gaining traction, with new customer engagements and collaborations in the US and Europe.
• Nano X Imaging Ltd (NASDAQ:NNOX) is making progress in clinical trials and data generation, which supports the clinical value and adoption of its imaging technology.

Negative Points

• The company reported a GAAP net loss of $14.1 million for the fourth quarter of 2024, an increase from the previous year.
• Revenue from AI solutions remains relatively low, with a gross loss reported for the period.
• There is uncertainty regarding the timing of the inflection point for significant revenue growth from imaging solutions.
• Operating expenses have increased, particularly in general and administrative costs, due to higher legal expenses.
• The company does not provide specific guidance on future financial performance, creating uncertainty for investors.

Q & A Highlights

Q: Could you elaborate on the DME partners in the US and whether the ARC will be sold outright or placed under an imaging-only scenario? A: Erez Meltzer, CEO: We have both options. Some will be sold as CapEx direct, where they handle installation and sales, while others will follow the typical model we currently have.

Q: Can you provide an update on the US platform and expected placements for 2025? A: Erez Meltzer, CEO: We are doubling our team every quarter, with five salespeople currently. We are expanding clinical support to build market awareness. We expect significant impact from channel partners and are targeting small to medium-sized medical imaging centers, orthopedic clinics, and multi-specialty medical centers.

Q: How many systems were deployed in the US during the quarter, resulting in $136,000 in system revenue? A: Erez Meltzer, CEO: We don't disclose exact numbers, but systems are in various stages of installation. We expect channel partners to add value, and each new salesperson expands our installation base.

Q: How should we think about pricing for ARC in Europe and its impact on gross margin? A: Erez Meltzer, CEO: In Europe, we have expanded our team and engaged new distributors. We expect installations to start in the next six months, with most sales being CapEx and a smaller portion under a different model.

Q: Can you provide any guidance or outlook for 2025, particularly for teleradiology services and AI solutions? A: Ran Daniel, CFO: We don't provide guidance, but teleradiology services are expected to grow in line with analyst consensus. AI solutions saw a one-time income in Q3, but we expect growth in 2025 with an increase in clients and pilots.

Q: When should we expect an inflection point in imaging solutions revenue? A: Ran Daniel, CFO: We don't provide specific guidance, but growth will be driven by US and EU market expansion, new product clearances, and increased market awareness.

Q: How will the capital raised be used to drive system placement? A: Ran Daniel, CFO: We raised $38 million gross in Q1 2024, which will be used to accelerate commercialization of both imaging and AI products.

Q: Do you anticipate continuing to use the ATM facility this year? A: Ran Daniel, CFO: We don't provide forward-looking actions, but we are conservative and consider existing shareholders when making decisions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.