Hyperfine, Inc.

Good afternoon, and welcome to Hyperfine's third quarter 2024 earnings conference call. Currently, all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Marissa Beisch from Gilmartin Group for introductory disclosures.

Thank you for joining today's call. Earlier today, Hyperfine Inc. released financial results for the quarter ended September 30, 2024. A copy of the press release is available on the company's website, as well as sec.gov. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. All forward-looking statements, including, without limitation, those relating to our operating trends and future financial performance, expense management, expectations for hiring, training and adoption, growth in our organization, market opportunity, commercial and international expansion, regulatory approvals, and product development are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the risk factor section of our latest periodic filing with the Securities and Exchange Commission. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, November 12, 2024. Hyperfine Inc. disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. With that, I will turn the call over to Maria Sainz, President and Chief Executive Officer.

Good afternoon, and thank you for joining us. On the call with me today is our Chief Administrative Officer and Chief Financial Officer, Brett Hale. We delivered another strong quarter with revenue of $3.6 million, representing 56% year-over-year growth, over 270 basis points of sequential gross margin expansion, and continued reduction in cash growth. Revenue performance was driven by sales of our suitable imaging systems in both the U.S. and international markets. International contributions to revenue were healthy in the third quarter, and we did not experience the extent of seasonality that we had anticipated. Our growth going forward will be driven by expansion into multiple new sites of care and international geography. In the U.S. alone, we have a $6 billion-plus total addressable market opportunity for placements in hospital and office settings. Our expansion is enabled by our technical and clinical developments as ever-improving image quality and compelling clinical evidence are key catalysts for adoption of these new brain imaging technologies. An important development in the third quarter was the progress made on our commitment to further improve image quality to enable faster adoption of our technology. Early in the quarter, we received FDA clearance of our ninth-generation AI-powered software. This approval marked an important step forward in the imaging capability of our unique ultra-low-field portable brain MRI reducing acquisition times without compromising image quality, delivering higher overall clinical performance. Shorter scan times make subsystem images especially useful in time-sensitive medical settings, such as the ICU dealing with critically ill patients with unstable intracranial pressure, as well as emergency departments for the triage of stroke.