4DMedical's (ASX:4DX) 1QFY25 operating revenue surges 366% YoY as it expands global reach

Highlights

• Distribution agreement with Philips expands U.S. market opportunities
• In FY24, operating revenue grew 422% YoY to AUD 3.8 million
• In 1QFY25, operating revenue surged 366% YoY to AUD 1.4 million
• The company expects AUD 7 million in grant income and tax incentives in 2QFY25; partnerships and reseller agreements driving market penetration

4DMedical Limited (ASX:4DX) is an international medical technology company that transforms lung function assessment in respiratory disease patients. The company has recently inked a distribution agreement with Philips as an authorised US reseller, expanding the US market opportunities.

The agreement supports the US Department of Veterans Affairs and leverages the PACT Act, with the company’s XV LVAS® and LDAf technologies addressing respiratory conditions. Recent LMS reimbursement approvals improve the potential for widespread adoption, positioning the company for growth in the US market.

Moreover, the company is expanding access to CT LVAS^TM across Australian radiology networks and continues to innovate with its XV Scanner and MRFF grant. The CRC-P grant is expected to support in accelerating the trial program of ventilation and perfusion technology CT:VQ. CT:VQ is designed to offer an alternative traditional Nuclear VQ scans, offering comparable diagnostic insight without the requirement of expensive infrastructure and radioactive isotopes.

Recent financial performance

In the financial year 2024 (FY24), the company recorded 422% YoY increase in operating revenue to AUD 3.8 million. In FY24, SaaS revenue was AUD 3 million while product revenue was AUD 1.1 million, up 53% over the previous corresponding period. During the year, loss increased to AUD 36.2 million, compared to AUD 31.6 million in previous year.

In the first quarter of FY25 (1QFY25), 4DX’s operating revenue increased by 366%YoY to AUD 1.4 million, while general radiology SaaS income jumped 69% on a like-for-like basis. At the end of quarter, cash balance stood at AUD 20.5 million.

Outlook

In 2QFY25, the company expects to secure around AUD 7 million in grant income and tax incentives. Moreover, the reseller agreement with Philips increases reach to the US market, while partnerships with radiology networks increase expansion in Australia. 

Share performance of 4DX

4DX shares closed 3.09% lower at AUD 0.47 apiece on 11 December 2024. Over the past year, 4DX’s share price has recorded a fall of 43.71% and in the past three months, the share price has increased by almost 13.25%.

52-week high of 4DX is AUD 0.865, recorded on 11 December 2023 and 52-week low is AUD 0.41, recorded on 19 September 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 11 December 2024. The reference data in this report has been partly sourced from REFINITIV.

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