NNOX - Innovative 10x Play - Q3 24 Earnings Call Recap!
Can Nanox Shake up the Dated X-Ray Industry?
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Disclaimer: The content of this post is solely my personal opinion and is intended for informational purposes only. It should not be considered financial or investment advice. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Investments carry risks, including the potential loss of principal.
Today we will discuss the latest earnings call on NNOX from 11/21/2024
If you haven’t heard or read about Nanox then below is an intro to the company!
Earnings Call Transcript 11/21/2024:
In the latest earnings call management paved the way for milestones that they where working towards getting completed and paving the way for broader market adoption across the US and EU. Each of these markets require clearances to deploy and commercialize their Nanox.ARC x ray machines.
Below is what the CEO Erez Melzer had to say when asked when he would expect to see a hokey stick inflection point in terms of revenue expansion for the company.
What occurred about 2 weeks later from this earnings call on behalf of their 1st milestone, FDA Nanox.ARC clearance.
Chest and full body milestone in U.S. - As of 12/5/2024 the FDA just provided clearance for Pulmonary , Intra Abdominal , Paranasal x ray scans.
This approval sent NNOX 0.00%↑ up 20%+ as they work their way closer to their full body scan milestone!
CE approval is anticipated in the better half of 2025 - this approval would mark a huge win for Nanox, as this would open the gates for EU markets to allow the adoption of the Nanox.ARC systems, with countries who already have pre existing purchase orders that are ready to hit the market upon this approval!
This note above is crucial for NNOX if / or when they get this approval they didn’t give a number but will potential open the flood gates for further expansion and credibility of their systems as they expect clinical trials to take place there after that will generate data and enhance further credibility of their systems.
Below is the CEO indicating pre existing orders in place in their latest earnings call
Side Notes:
One of the more crucial notes that I could not get away from after reading was how bullish they are in terms of their deal flow. Below is a note from the intro of the call where they saw increase quarterly demand and as a result had to double their sales team!
You simply do not double your service and sales staff unless you expect business to boom in the near term, especially as a company that is still in its cash burn phase!
As a final note they the CEO seems to not have any string of doubt their CE designation will come in part into 2025, per note below.
In Conclusion:
I would say this latest earnings call was very bullish as it can be, management was able to provide clear guidance in terms of milestones the company is anticipating or in their backlog, with color as to how they will execute these FDA, CE clearances to meet already pending demand across these two markets!
As a reminder I am long and had previously been buying as the price was sitting at $5-6 dollars a share which was very cheap given this was priced at their enterprise value!
