iCAD, Inc.

Revenue for Q4 2024 was $5.4 million, up $0.7 million or 14% versus Q4 2023; full-year 2024 revenue was $19.6 million versus $17.3 million in 2023. Product revenue in Q4 was $3.7 million, up 24% year over year, while service revenue was $1.7 million, flat; full-year product revenue was $12.5 million versus $9.9 million, and service revenue was $7.1 million versus $7.4 million. Gross profit margin was 86% in Q4 2024 versus 91% in Q4 2023, and gross profit dollars were $4.7 million versus $4.3 million. GAAP net loss from continuing operations was $0.9 million, or $0.03 per diluted share, versus a loss of $0.5 million, or $0.02 per diluted share, a year ago; full-year GAAP net loss was $5.6 million, or $0.21 per diluted share, versus $7.0 million, or $0.27 per diluted share. Adjusted EBITDA loss was $0.5 million in Q4 and $5.4 million for the full year. Total ARR was $9.8 million at Q4-end, up from $8.8 million a year ago; maintenance ARR was $6.4 million versus $7.1 million, subscription ARR was $2.6 million versus $1.7 million, and cloud ARR was $0.8 million. Cash and cash equivalents were $17.2 million at year-end versus $21.7 million a year earlier, and operating cash used in 2024 was $3.9 million versus $5.0 million in 2023. Management did not provide formal 2025 revenue or EPS guidance, but said 2025 should be a significant phase of the SaaS transition, with cloud adoption expected to continue and backlog to flow into ARR with roughly a quarter lag.

Dana Brown framed 2024 as a pivotal year, led by the launch of ProFound AI version 4.0, accelerating ProFound Cloud adoption, and broader progress toward a SaaS-based model. She emphasized that version 4.0 addresses customer requests around accuracy, fewer false marks, and prior-exam analysis, and said early field performance is even stronger than the FDA submission dataset suggested. Her tone was constructive and confident, but she also stressed that the company is still early in the transition and is prioritizing long-term recurring revenue over short-term GAAP recognition.

Eric Lonnqvist focused on the mechanics of the SaaS shift and the financial tradeoffs it creates. He said 2025 will be a significant phase of the transition, that cloud implementations can run about a quarter behind deal close for ARR recognition, and that the company expects more backlog metrics may be reported this year. On the numbers, he highlighted $9.8 million of total ARR, $17.2 million of cash and equivalents, and $3.9 million of operating cash used for 2024, while noting that operating expenses rose to $5.5 million in Q4 mainly due to R&D and regulatory investment.

Analysts pressed on Q4 lumpiness, whether deals were pulled into the quarter, and how quickly ProFound AI version 4.0 could influence adoption. Management said Q4 benefited from strong sales execution, some timing shifts, and budget usage, but the bigger structural issue is that cloud deals close before they go live, creating a lag before they hit ARR. They also said version 4.0 is very early, but initial field feedback is strong, with the product performing better in clinical use than in the FDA dataset. Questions on maintenance ARR and churn were answered by saying the decline was mainly customers moving to subscription or cloud, with no unusual churn event in Q4; a question on RamSoft was met with the response that it is a new reseller-type partnership with more to come.