Q1 2024 Summary

May 2024

Breakthrough Ultrasound For Non-Invasive

Skin Tightening

DISCLAIMER

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Sofwave Medical Ltd. (the "Company" or "Sofwave") and should not be regarded as a recommendation or an opinion on such matters. The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business required for any decision concerning an investment in the Company's securities. This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, which constitute "forward-looking statements" as defined in the Securities Law 5728-1968, which is based on current expectations, projections and assumptions about future events. Actual results may differ materially due to variety of factors, some of which the Company has no control over and cannot be reasonably foreseen at this date, including, but not limited to the risk factors which are inherent to the Company's activity, third party decisions, including regulatory authorities and engagements with third parties, as well as by developments in the economic environment and the external factors which impact the Company's activity, which cannot be assessed in advance and are out of the Company's control. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified. The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

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Investor meeting May 2024

Presenters:

  • Dr. Shimon Eckhouse, Co-Founder and Chairman
  • Lou Scafuri, CEO
  • Assaf Korner, CFO

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Q1 2024 in Numbers

$13.2M

Revenues +27% YoY Growth

~$23.1M Cash

As of March 31, 2024

(*) Company estimation

$4.7M Recurring

Revenues

+118% YoY Growth

1 New Product

Launch

75.4% GM Non-GAAP

Over 280,000(*)

Treatment

(inception to date)

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Q1 2024 Overview

  • Solid Quarter of growth and console placements
  • Our focus on the core physicians had traction plus many customers paid cash or self-financed
  • Pulses sales were exceptional and driven by expanding brand awareness
  • Solid launch in the US for Arm Lift Clearance and Sofwave plus Pure Impact to major KOL's
  • We made significant investment to bring world class leadership experience to global sales and marketing teams
  • Our execution has been solid: scalable, lean infrastructure in-place to support continued high growth and profitability

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Market Conditions and Trends

Q1 2024

  • Globally, the core market remained solid; core doctors (dermatologists and plastic surgeons) demonstrated continued strong interest in new technology. FDA Clearances are most meaningful here
  • Market slowdown in non-core (general practitioner, spas and new providers) due to the impact of inflation/high-interest rates on the global economy: limited access to capital
  • Lower procedure price point and nonsurgical alternatives are driving non-invasive procedure growth in plastic surgery segment
  • GLP-1Agonists are everywhere and driving demand for tightening, lifting, laxity improvement and toning

"GLP-1 drugs appear likely to increase demand for other types of aesthetic procedures with 62% of those taking GLP-1 drugs indicating that the drugs have made them more likely to seek aesthetic procedures in the future." (Needham - 1Q24 Aesthetics Patient Survey: Further Improvement in Spending Outlook, March 2024)

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Positioned for Continued Growth

Addressing a $4.1B Total Addressable Market (TAM): GLP-1 Agonists Accelerating Faster Growth of Market

Foundational investment in clinical studies led to successful broad

expansion of FDA clearances to 8

KOLs as early adopters = fast sales conversion and brand advocacy:

  • Peer to peer influencers (FOMO)
  • Core Physicians influence market acceptance

In-house digital team with focused efforts to grow digital

presence and brand awareness driving procedure growth

Continued expansion of direct sales

team in US to increasing market coverage across customer segments

  • Added Practice Development Specialists to drive utilization and pulse sales
  • Market expansion in EMEA, APAC and LA

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One Device, 7 FDA Clearances

Courtesy of Gilly Munavalli, MD

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Proven Sofwave Technology Addresses Growing Market Demands

Targeted Lifting and Definition that's Repeatable

Targeted

Lifting

Definition

Repeatable

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Superior Sales Model

Facilitating Strong Recurring Revenue

"VIRTUAL" consumable with each treatment

  • CUSTOMER MAKES INITIAL PURCHASE OF THE DEVICE
  • THE RECURRING PULSE REVENUE IS $1.50 PER PULSE AND TREATMENTS REQUIRE 100-250
    PULSES. CUSTOMERS CAN BUY IN BULK ACCORDING TO THEIR USAGE
  • DEVICE IS PRELOADED WITH 3K PULSE STARTER KIT (APP. 10-15 TREATMENTS)
  • PULSES ARE CONSUMABLE AND RESUPPLIED VIA PURCHASED DOWNLOADS FROM SOFWAVE'S ESTORE

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Sofwave Medical Ltd. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 05:56:05 UTC.