Beskrivning
| Land | Finland |
|---|---|
| Lista | First North Finland |
| Sektor | Informationsteknik |
| Industri | Programvara |
Aiforia Technologies Plc, Half-Year Financial Report 2024 (unaudited), August 29, 2024 at 9:00 a.m. EEST
Aiforia’s Half-Year Financial Report January–June 2024: Progress in the clinical diagnostics market
This release is a summary of Aiforia Technologies Plc's Half-Year Financial Report for January–June 2024. The full report is attached to this release.
Aiforia Group has transferred from the Finnish Accounting Standards (FAS) to International Financial Reporting Standards (IFRS). The date of transition to IFRS was January 1, 2022.
Unless otherwise indicated, figures in brackets refer to the corresponding period in 2023.
January–June 2024
- Group revenue increased by 43% to EUR 1,372 (961) thousand.
- EBITDA was EUR -4,198 (-4,971) thousand.
- Operating loss (EBIT) was EUR -6,073 (-6,404) thousand.
- Profit for the review period was EUR -5,966 (-6,532) thousand.
- The Group’s net debt at the end of the period was EUR -11,089 (-14,084) thousand.
- Cash and cash equivalents and other financial assets at the end of the period amounted to EUR 17 923 (19,045) thousand.
- Unadjusted earnings per share (EPS) were EUR -0.22 (-0.25).
- In May 2024, Aiforia carried out a directed share issue of 2,843,851 new shares to domestic and international institutional and other qualified investors, raising gross EUR 9.95 million.
Key figures
1,000 euros Group | 1–6/2024 | 1–6/2023 | Change, % | 2023 |
| Revenue | 1,372 | 961 | +43% | 2,398 |
| EBITDA | -4,198 | -4,971 | +16% | -9,699 |
| Operating loss | -6,073 | -6,404 | +5% | -12,879 |
| Result for the financial period | -5,966 | -6,532 | +9% | -12,925 |
| Equity ratio, % | 67% | 76% | -11% | 66% |
| Net debt | -11,089 | -14,084 | -21% | -8,126 |
| Cash and cash equivalents and other financial assets at the end of the financial period | 17,923 | 19,045 | -6% | 13,974 |
| Order book | 3,235 | 2,412 | +34% | 2,373 |
| Balance sheet total | 33,651 | 32,230 | +4% | 28,191 |
| Number of employees on average | 76 | 69 | +10% | 73 |
| Personnel expenses * | 4,387 | 4,307 | +2% | 9,154 |
| Investment in tangible and intangible assets | 2,686 | 3,154 | -15% | 6,071 |
| Earnings per share, undiluted and diluted, EUR ** | -0.22 | -0.25 | -11% | -0.50 |
*Personnel expenses include capitalization of development expenses and non-monetary costs arising from share-based incentive schemes.
**The Company’s potential dilutive instruments consist of stock options. As the Company’s business has been unprofitable, stock options would have an anti-dilutive effect and therefore they are not taken into account in calculating the dilutive loss per share. Thus, there is no difference between the undiluted and diluted earnings per share.
Jukka Tapaninen, CEO:
The first half of the year was busy and eventful for Aiforia. We published a revised growth strategy and updated business targets in early 2024. We consistently and ambitiously implemented our strategy throughout the review period. Our short-term goal is to expand Aiforia’s product offering, find new strategic partnerships, and achieve positive operating cash flow. The revenue for the first half of 2024 was EUR 1,372 million, which grew by 43%. The order book increased from EUR 2,412 to EUR 3,235 million.
During the review period, we further strengthened our cooperation with the Mayo Clinic in the United States, by signing an exclusive licensing agreement to globally commercialize an AI model that improves prediction of colorectal cancer recurrence. The AI model developed in collaboration with the Mayo Clinic identifies the tissue characteristics of colorectal cancer and provides a prognosis of the course of the disease. The collaboration is part of our customer-oriented R&D and diverse collaboration with Mayo.
In May, we signed a multi-year framework agreement to provide AI solutions for Fimlab laboratories in Finland to support diagnostics in pathology. For us, the framework agreement is yet another proof of the quality of our solutions and that they serve the needs of diagnostic laboratories in AI-assisted pathology workflow. It is also great to see how Aiforia’s technology can strengthen the efficacy of patient care. After the review period in August, we also announced that Fimlab selected Aiforia as the provider for breast and prostate cancer diagnostics solutions.
Aiforia’s AI-assisted image analysis solutions are suitable for a wide range of applications and uses in the medical field. In May, we announced that one of the world’s leading veterinary health operators and innovative diagnostic device manufacturers based in the United States selected Aiforia as its partner for AI-assisted image analysis in animal samples.
In line with our strategy, we aim to expand Aiforia’s preclinical offering with new AI models and a user interface designed for the GLP workflow. A concrete example of this is the Aiforia® Studies software module published during the six-month period, which enables GLP (Good Laboratory Practices) compliant AI-assisted image analysis in non-clinical histology studies.
To ensure a growth rate in line with our targets, we carried out a directed share issue of 2,843,851 new shares toward the end of the review period, raising EUR 9.95 million. The proceeds from the share issue are intended to be used to support Aiforia’s growth strategy, including investments in R&D, sales and marketing. In addition, the financing round will help us achieve positive operating cash flow by the end of 2025, in line with our business objectives.
During the review period, we promoted measures to achieve regulatory approval for Aiforia’s first product in the United States.
The field of pathology is facing change as a result of digitalization and the development of AI models, and Aiforia intends to be at the forefront of this development. In addition, the growing use of digital pathological solutions to improve laboratory efficiency opens the market for AI-supported solutions. We are committed to our vision of becoming a global market leader in AI-assisted image analysis in pathology.
Business targets (updated January 19, 2024)
Aiforia does not publish short-term outlooks or financial targets. However, the company has set short- and medium-term business targets:
Aiforia’s short-term business targets 2024–2025 are:
- Expand pre-clinical offering with new AI models and study-centric GLP workflow
- Expand clinical offering with 10 new regulatory-approved AI models
- Form at least three new strategic partnerships
- Achieve 15 key accounts (potential for over 500 EUR thousand in annual recurring revenue)
- Achieve a positive cash flow from operating activities.
Aiforia’s updated mid-term business targets by the end of 2030 are:
- Create a product offering that covers 80% of the pathologist’s diagnostic workflow
- Achieve profitable business by the end of 2027
- Achieve revenue of over EUR 100 million
- Leverage technology beyond diagnostic support for pathologists
- Achieve 50 key accounts (potential for over 500 EUR thousand in annual recurring revenue).
Significant events after the reporting period
Aiforia selected to provide AI-assisted diagnostics in the Castile and León region in Spain
In July Aiforia announced that the regional health management of Castile and León in Spain selected Aiforia Technologies Plc as a partner for AI-assisted diagnostics. The collaboration involves the use of selected Aiforia Clinical AI solutions for the analysis of tissue samples, e.g., from breast, prostate, and lung cancer patients. The total value of the contract for Aiforia is approximately EUR 500 thousand for three years.
Aiforia to provide AI solutions for breast and prostate cancer diagnostics for Fimlab Laboratories
In July Aiforia announced that Fimlab Laboratories Ltd selected Aiforia Technologies Plc as the provider for breast and prostate cancer diagnostics solutions. Earlier in May, Aiforia announced a framework agreement in which it was selected as a supplier of AI solutions for Fimlab to support pathology diagnostics. The AI solutions for breast and prostate cancer, representing three applications, are the first order for Aiforia within the multi-year framework agreement. The value of the first order for Aiforia is approximately EUR 300 thousand for the first year.
Webcast
Aiforia arranges a live webcast for investors, analysts, and media on August 29, 2024 at 10.00 a.m. Finnish time. The event will be held in English. The financial results will be presented by Jukka Tapaninen, CEO and Veli-Matti Parkkonen, CFO.
The webcast can be followed at https://aiforia.videosync.fi/q2-2024.
A recording of the event and the presentation materials will be available at https://investors.aiforia.com/ later in the day.
Further inquiries
Veli-Matti Parkkonen, CFO, Aiforia Technologies Plc
tel. +358405009878
https://investors.aiforia.com/
Certified Adviser
UB Corporate Finance Ltd
ubcf@unitedbankers.fi
About Aiforia
Aiforia is a trusted provider of deep learning artificial intelligence (AI) solutions for pathology. Aiforia delivers software solutions that elevate diagnostic capabilities in image analysis, enabling remarkable medical discoveries now and in the future. With thousands of AI models already developed on the Aiforia platform for research use and several diagnostic solutions deployed, Aiforia is already significantly impacting pathology and healthcare.
Founded in 2013, Aiforia is a publicly traded company operating internationally with thousands of platform users across the globe. The company is headquartered in Helsinki, Finland, with offices in Cambridge, Massachusetts, and Rochester, Minnesota, and local representatives across Europe and North America. The diverse team at Aiforia includes experienced pathologists, medical scientists, AI and software developers, and a dedicated commercial team. Together, they are working to transform pathology with AI, enabling better care for each patient.
Find out more at www.aiforia.com