Sofwave Medical Announces Third Quarter 2022 Financial Results and Business Highlights

SofWave Medical, Ltd.

  • 3Q 22 revenue up 193% year-over-year to $8.2 million

  • First Nine Months Revenue Up 69% YoY to $21.9M, Outpacing Full-Year 2021 Revenue

  • Pulse first nine months recurring revenue increased 181% to $4.5 million

  • Gross margins for the first nine months of 74.6%

  • Signature of a key collaboration and distribution agreement with HTDK to advance sales of Sofwave® in China

SAN CLEMENTE, Calif., Nov. 08, 2022 (GLOBE NEWSWIRE) — Sofwave Medical Ltd (TASE: SOFW), an emerging leader in energy-based non-invasive aesthetic medical devices for practitioners worldwide, announced its results for the third quarter and first nine months of fiscal 2022, for the period ended September 30, 2022. All results are reported voluntarily in accordance with International Financial Reporting Standards (“IFRS”) and in U.S. dollars.

Financial Highlights (3Q’22)

  • 3Q’22 revenue of $8.2M, an annual increase of 193%

  • First nine months revenue up 69% year-over-year to $21.9 million, outpacing full-year 2021 revenue

  • Pulse recurring revenue for the first nine months $4.5 million or more than 20% of revenue

  • Despite industry seasonality, the third quarter income exceeded reported revenue in the first and second quarters of 2022

  • Gross margin 74.6% in the first nine months of 2022 compared to 74.3% in 2021 (excluding stock-based compensation)

  • Strong cash position of approximately $31 million as of September 30, 2022

Mr. Louis Scafuri, CEO of Sofwave, said, “Collectively, our comprehensive go-to-market initiatives continue to drive results, as evidenced by our record revenues during the period. Pulse recurring revenue has accounted for more than 20% of total revenue despite inflationary pressure as patients, industry KOLs and early adopters recognize the superior benefits of Sofwave’s SUPERB technology. Additionally, while the third quarter is traditionally a slow time in the industry, we also exceeded revenue for the period over each of the previous fiscal 2022 reporting quarters.

“Operationally, we continue to grow our direct sales force in the United States, our main sales market. We have also consolidated a key collaboration and distribution agreement with HTDK in China. We are proud of this relationship as they are a leading provider of healthcare solutions with deep industry knowledge and infrastructure, selling to over 1,700 medical institutions in China. We also look forward to updating the market on HTDK’s progress in assisting with product registration and approval with the NMPA, China’s equivalent to the FDA,” concluded Mr. Scafuri.

Operational Highlights (first 9 months of 2022)

  • US direct sales force increased to 32 reps

  • First U.S. patent received, covering key elements of the company’s exclusive SUPERB™ non-surgical skin and collagen reshaping technology

  • Signed a key collaboration and distribution agreement with HTDK (wholly owned by Warburg Pincus) to grow sales in the $29 billion Chinese aesthetic medicine market

    • HTDK Group is a leading provider of healthcare solutions selling to over 1,700 medical facilities

    • Strategic partnership in the region extends through expertise in advancing Sofwave’s product registration and approval with NMPA (Chinese FDA)

  • Following Successful U.S. Multicenter Cellulite Clinical Trial, Company Submits 510K Application for Clearance of Non-Invasive Cellulite Treatment Technology

Shimon Eckhouse, President and Co-Founder, added, “Additionally, we have strengthened Sofwave’s intellectual property portfolio and received our first US patent covering key elements of proprietary skin and collagen reshaping technology. company’s SUPERB™ Surgical System. Our solution is truly capable of delivering a superior return on investment to practitioners, and we are gaining traction as an emerging leader in the delivery of non-invasive, energy-based, science-backed aesthetic medical devices. Additionally, we continue to expand our indications for use of the technology and have subsequently filed an application with the FDA, seeking approval for the treatment of cellulite with Sofwave technology.

About Softwave Medical Ltd.
Softwave Medical Ltd. has implemented an innovative approach to reducing and lifting wrinkles using proprietary breakthrough technology. Synchronous Ultrasound Parallel Beam technology is FDA cleared to improve fine lines and wrinkles on the face, lift eyebrows, and lift loose submental tissue (under the chin) and neck tissue, providing physicians with smart yet aesthetic solutions. simple, effective and safe for their patients.

Contact: [email protected]

Investor contacts:
Brian Ritchie
LifeSci Advisors LLC
(212) 915-2578
[email protected]

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