On the 23rd April, ContextVision AB announced its financial results for the first quarter 2020. These show that the company delivered explosive sales growth as well as increased profitability during the quarter, relative to the prior year. Total company revenues reached SEK 29.2m, compared with SEK 21.1m during Q1 2019, an increase of approximately +40% year-on-year.
The sales growth during the quarter was driven primarily by higher sales revenue from Altumira, the companies AI-based product line for X-ray imaging, but also from continued demand for its 2D ultrasound solutions which remains it’s largest product from a revenue contribution perspective. Sales revenue originating from x-ray grew by almost +250% year-on-year, while sales from 2D ultrasound grew by approximately +18% year-on-year. The higher x-ray sales were related to large orders from existing customers, whereas, a large part of the growth from ultrasound was driven by the new customers acquired during February 2020. In addition to the existing demand, the company cited that it received several special requests for products which could be due to an elevated need for imaging exams as a result of the global Coronavirus pandemic.
From a geographical perspective, the sales growth during the quarter was driven by higher sales from customers based in Asia and North America, partially offset by lower sales from customers in Europe. The majority of the increase came from business originating in Asia. During the Q1 presentation, CEO Fredrik Palm commented that the slight sales decline in Europe is “within a normal variation” and “was in-line with our expectations”.
Alongside impressive sales growth, the company is on target to launch its second generation ultrasound product, Rivent, which is likely to be released for sale during the second quarter of 2020. In addition, the company continues to make significant progress toward market entry with it’s first product for digital pathology. The company is building a portfolio of decision support tools and anticipates that its first product will be a decision support tool to assist with prostate cancer diagnosis. During the first quarter, the company has been collecting feedback from beta test sites as well as integrating its technology with several strategic parters delivering PACS and LIS systems. The integration of the companies technology with these types of vendors is anticipated to offer a comprehensive package for the digitalisation of pathology labs.