Electromed reports record revenue and growth in Q3 By Investing.com

Electromed (NYSE:) Incorporated (NYSE American: ELMD) has announced a significant increase in its third-quarter revenue and operating income for fiscal year 2024. The company’s total net revenue reached $13.9 million, marking a 15% rise from the previous year, while operating income surged by 54%. Electromed’s growth was seen across all its business segments, with an expansion of its sales team and the launch of new educational initiatives to promote its SmartVest Airway Clearance technology. Despite a cyber attack on a service provider, Electromed has effectively resolved most of the impacted claims and anticipates a full resolution by the fourth quarter.

Key Takeaways

• Electromed’s Q3 net revenue increased by 15% year-over-year to $13.9 million.
• Operating income for the quarter grew by 54%.
• The company saw growth in homecare, hospital, and other categories.
• Electromed expanded its sales team and launched educational webinars and a clinical resource center.
• A cyber attack on Change Healthcare (NASDAQ:) caused delays, but 98% of claims have been resolved.
• Electromed maintains a strong financial position with no debt and $11.7 million in cash.

Company Outlook

• Electromed is focused on increasing awareness of bronchiectasis and reducing the time from diagnosis to starting vest therapy.
• The hospital market is viewed as a key entry point for the home use of the company’s technology.
• The company is considering various uses for its cash, including reinvestment and enhancing shareholder value.

Bearish Highlights

• Electromed faced a cyber attack on Change Healthcare, impacting claims processing.

Bullish Highlights

• The company has a strong balance sheet with no debt.
• There has been a substantial increase in net interest income, rising over 360% to $120,000.

Misses

• There are no specific misses reported in the earnings call summary.

Q&A Highlights

• CEO James Cunniff expressed confidence in the company’s talent and sales team, emphasizing their positive impact on patient lives.
• Cunniff noted improvements in productivity and business insights across all functional areas.
• CFO Bradley Nagel acknowledged the contribution of new talent to the company’s financial success.
• The implementation of an ERP system has provided valuable financial and operational insights.
• The reimbursement team has increased efficiency, contributing to the company’s financial health.

Electromed’s leadership team, including…