Nanosonics (ASX:NAN) H2 FY24 Updates
Improving market conditions?
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Nanosonics (ASX) provided a trading update for the second half of FY24 this morning. Based on the numbers provided, it seems the company is managing the market headwinds experienced in the first half of 2024 quite well by offering additional customer solutions to bridge budget constraints. Nanosonics also mentioned making several organizational changes, particularly in sales territory realignments. Additionally, they reported a growing pipeline and improved sales conversion timelines.
Here is the revenue graph for each half:
And here is the graph showing new and upgraded units for each half:
Overall, North American results have significantly improved compared to the first half of 2024.
The good news is that the second-half results are in line with or slightly better than expectations after a challenging first half.
However, the poor performance in the first half will impact the overall FY24 results compared to FY23. Nonetheless, there is hope for Nanosonics with the impending FDA outcome of CORIS and continued momentum into FY25 from the second half.
Investors can be relieved that Nanosonics is not expected to miss guidance for the second half as it did in the first half. Any concerns about recent insider selling seem to have been unfounded, which is also reassuring.
The graph below shows a significant divergence between Nanosonics' revenue and share price over the past few years. Hopefully, Nanosonics can regain investor confidence in the coming years.
