Nuwellis reports modest revenue growth in Q1 2024 By Investing.com

Nuwellis Inc. (NASDAQ:), a medical device company, reported a slight revenue increase in the first quarter of 2024, with a 2% year-over-year growth totaling $1.9 million. This growth was primarily fueled by an 11% rise in consumable utilization, especially in the pediatric sector, which experienced a substantial 40% increase in revenue.

Despite the overall growth, the company faced a decline in heart failure revenue by 38% due to reduced utilization and consult sales. Nuwellis expects a rise in capital sales in the coming year, backed by a strong pipeline of new accounts. The company concluded the quarter with $1.4 million in cash and cash equivalents and raised an additional $2.7 million through an underwritten public offering on April 30th.

Key Takeaways

• Nuwellis reported a 2% revenue increase year-over-year, reaching $1.9 million in the first quarter of 2024.
• The pediatric customer category saw a significant 40% revenue growth, with five new accounts added.
• Heart failure revenue declined by 38%, while critical care revenue remained unchanged.
• Nuwellis anticipates an increase in capital sales due to a robust pipeline of new target accounts.
• The company is collaborating with SeaStar Medical and DaVita (NYSE:) on new medical devices and therapies.
• Gross margin stood at 64.1%, with operating expenses reduced through cost-saving measures.
• The company closed the quarter with $1.4 million in cash and raised $2.7 million from a recent public offering.

Company Outlook

• Nuwellis expects capital sales to improve throughout the year.
• The company is focusing on expanding technology and offerings, including opening five new centers.
• There is potential for cross-selling pediatric dedicated devices.

Bearish Highlights

• Heart failure revenue saw a significant decrease of 38%.
• Hospital capital constraints post-pandemic have affected capital equipment sales.
• Development of the pediatric dedicated device software, Vivian, was impacted by reliance on consultants.

Bullish Highlights

• Pediatric customer category experienced a robust 40% growth in revenue.
• Positive pilot results from collaborations with SeaStar Medical and DaVita.
• Nuwellis is training personnel and pursuing IRB approvals for new devices.

Misses

• The company experienced a decrease in heart failure revenue, which was attributed to lower utilization and consult sales.

Q&A Highlights

• CEO Nestor Jaramillo discussed the impact of hospital…