Sofwave Medical Reports Third Quarter 2022 Financial Results and Business Highlights

• 3Q’22 revenue up 193% y-o-y to $8.2 million
  
  
• First nine months revenue up 69% y-o-y to $21.9M, exceeding revenue for all of fiscal 2021
• First nine months Pulse recurring revenue increased by 181% to $4.5M
• Gross margins for the first nine months of 74.6%
• Signed key collaboration and distribution agreement with HTDK to advance Sofwave® sales 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, reported results for the third quarter and first nine-months of fiscal year 2022, for the period ended September 30, 2022. All results are reported voluntarily under International Financial Reporting Standards ("IFRS") and in US dollars.

Financial Highlights (3Q’22)

• 3Q’22 revenue of $8.2M, a year on year increase of 193%
• First nine months revenue up 69% y-o-y to $21.9M, exceeding revenue for all of fiscal 2021
• Pulse recurring revenue for the first nine months of $4.5 million or over 20% of revenue
• In spite of industry seasonality, third quarter revenues exceeded reported revenues in the first and second quarters of 2022
• Gross margin of 74.6% for the first nine months of 2022 vs. 74.3% in 2021 (excluding stock-based compensation)
• Strong cash position of approximately $31M as of September 30, 2022

Mr. Louis Scafuri, Sofwave CEO commented, “Collectively, our comprehensive go-to-market initiatives continue to drive results as evidenced by our record revenue in the period. Pulse recurring revenue made up 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 period in the industry, we also exceeded revenues in the period as compared to each of the prior reporting quarters in fiscal 2022.

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

Operational Highlights (First 9 months of 2022)

• US direct sales force grew to 32 sales reps
• First US patent received, covering key elements of the Company’s proprietary SUPERB™ non-surgical skin and collagen remodeling technology
• Key collaboration and distribution agreement signed with HTDK (wholly owned by Warburg Pincus) to advance sales in China’s $29 billion aesthetic medicine market
  • HTDK Group is a leading healthcare solutions provider which sells into 1,700+ medical institutions
  • The strategic partnership in the region extends across expertise in advancing Sofwave’s product registration and approval with the NMPA (China’s FDA)
• Following the successful completion of the cellulite, US multi-center clinical trial, the company submitted its 510K application for clearance of its technology for non-invasive treatment of cellulite

Shimon Eckhouse, Chairman and co-founder added, “Furthermore, we have strengthened Sofwave’s IP portfolio and have received our first US patent covering key elements of the Company’s proprietary SUPERB™ non-surgical skin and collagen remodeling technology. Our solution is truly able to deliver a superior ROI to practitioners, and we are gaining ground as the emerging leader in supplying science backed, energy based non-invasive aesthetic medical devices. Moreover, we continue to expand our indications of use for the technology and have subsequently filed an application with the FDA, seeking approval for treatment of cellulite with the Sofwave technology.”  

About Sofwave Medical Ltd.

 has implemented an innovative approach to wrinkle reduction and lifting using proprietary breakthrough technology. Synchronous Ultrasound Parallel Beam technology is FDA-cleared to improve facial lines and wrinkles, lifting the eyebrow and lifting lax submental tissue (beneath the chin) and neck tissue providing physicians with smart yet simple, effective, and safe aesthetic solutions for their patients.

Contact: 

Investor Contact:

Brian Ritchie

LifeSci Advisors LLC

(212) 915-2578