iCAD Reports 12.5% Revenue Decline and $4.9 Million Net Loss for Fiscal Year 2023

iCAD, Inc. reported a decrease in revenue for the fiscal year ended December 31, 2023, with total revenue of $17.3 million, down 12.5% from $19.8 million in 2022. The decline was primarily attributed to a reduction in product sales, which fell by 21.3% to $9.9 million, while service revenue saw a slight increase of 2.9% to $7.4 million. The company noted that the decrease in product revenue was influenced by reduced demand, a smaller sales force, and a strategic shift towards a subscription-based model, which is still in its early stages of adoption.

In terms of profitability, iCAD reported a net loss of approximately $4.9 million for 2023, an improvement from a net loss of $13.7 million in the previous year. The company’s gross profit margin increased slightly to 85.4%, up from 84.9% in 2022, reflecting a favorable product mix. Operating expenses also decreased significantly, totaling $22.5 million, down 16.8% from $27.0 million in 2022, due to cost-saving initiatives implemented in late 2022 and early 2023.

Strategically, iCAD completed the sale of its Xoft business line on October 23, 2023, which allowed the company to focus solely on its cancer detection segment. This divestiture is expected to strengthen iCAD's financial position and streamline its operations. The company is also transitioning to a Software as a Service (SaaS) model, which is anticipated to provide a more predictable revenue stream. iCAD has made progress in this transition, including hiring new leadership and forming collaborations with key partners.

Operationally, iCAD's customer base remains robust, with approximately 1,488 active customers utilizing its ProFound Breast Health Suite, which is now available in over 50 countries. The company estimates that its solutions have been used in more than 40 million mammograms globally over the past five years. As of December 31, 2023, iCAD had 69 employees, with a focus on enhancing its sales and marketing capabilities to drive growth in both domestic and international markets.

Looking ahead, iCAD is optimistic about its future growth prospects, particularly as it continues to expand its subscription offerings and enhance its product suite. The company plans to invest in initiatives that deepen relationships with existing customers and broaden its sales channels. However, iCAD acknowledges potential risks, including market acceptance of its new products and the impact of regulatory changes on its operations. The company believes its current cash position of $21.7 million will support its operations for at least the next 12 months, but it remains vigilant about monitoring its liquidity and capital needs.