Artrya Limited (ASX: AYA)
Artrya Limited (ASX: AYA) made significant progress in FY24, advancing its Salix product line, particularly in the US and Australia. Key achievements include the completion of a second Q-Sub with the FDA for Salix Coronary Anatomy, submission of a 510(k) FDA application, and receiving FDA registration for Salix Ingest. The company launched Salix in Australia with The Cardiac Centre NSW and secured strategic partnerships with hospital groups in the US, giving access to 15 hospitals and specialist clinics. Artrya also secured a $3.3 million grant to analyse CCTA images and made strides in building credibility with publications in peer-reviewed journals. The company’s primary focus remains the US market, where it aims to leverage attractive reimbursement rates for AI-assisted CCTA scans, including new rates set by the Centers for Medicare and Medicaid Services (CMS). Once FDA approvals for Salix Coronary Plaque and Salix Coronary Flow are achieved, Artrya expects to access reimbursement for both procedures, targeting a total of approximately US$2,000 per scan.
Artrya’s priorities for CY25 include gaining FDA clearances for Salix Coronary Anatomy, Plaque, and Flow, with targeted revenue generation from the US market in the second half of the year. The company will also focus on expanding its client base in the US, engaging with larger health systems, and continuing to validate and commercialize Salix in Australia. Artrya recently raised $5 million to extend its financial runway and minimize dilution, while welcoming new institutional investors. The company’s growth strategy hinges on capitalizing on the increasing adoption of CCTA scans and the evolving healthcare landscape in the US.
Palantir Technologies (NYSE: PLTR)
Palantir Technologies (NYSE: PLTR) delivered a standout Q3 2024 performance, driven by surging demand for AI solutions, particularly in the U.S. Total revenue reached $726 million, up 30% YoY and 7% QoQ, with U.S. revenue surging 44% YoY to $499 million. U.S. commercial revenue grew 54% YoY to $179 million, while U.S. government revenue expanded 40% YoY to $320 million. Customer count rose 39% YoY, supported by the closure of 104 deals exceeding $1 million.
The company reported GAAP net income of $144 million, a 20% margin, and GAAP operating income of $113 million (16% margin). Adjusted operating income came in at $276 million, a 38% margin. EPS on a GAAP basis doubled YoY to $0.06, with adjusted EPS climbing 43% YoY to $0.10. Palantir demonstrated robust cash flow generation, with $435 million in adjusted free cash flow (60% margin) and $420 million in cash from operations (58% margin). Cash reserves totaled $4.6 billion.
Management raised full-year 2024 guidance, expecting revenue between $2.805-$2.809 billion and adjusted operating income of $1.054-$1.058 billion. U.S. commercial revenue is forecast to exceed $687 million, representing at least 50% YoY growth. Adjusted free cash flow is now projected at over $1 billion. For Q4, revenue guidance stands at $767-$771 million, with adjusted operating income of $298-$302 million.
Palantir’s performance underscores its positioning as a leader in the AI revolution. With robust execution across government and commercial segments, disciplined cost management, and a growing customer base, the company continues to deliver compelling financial metrics and future growth prospects.
Appen Limited (ASX: APX)
Appen Limited (ASX: APX) reported mixed Q3 FY24 results, with quarterly revenue of $54.1 million, a 13% year-over-year decline, reflecting ongoing pressures across its core business. However, growth in generative AI projects supported revenue momentum in China and with a key global client, partially offsetting these challenges. Underlying EBITDA (before FX) improved to $1.0 million, a significant turnaround from the $7.5 million loss in the prior year, driven by cost-reduction initiatives. The company’s cash position remains stable, with $30.3 million as of September 30, 2024. Following an A$50.0 million institutional placement completed in October, the pro-forma cash balance rose to $62.4 million, enhancing flexibility to support strategic growth initiatives. Appen continues to benefit from its positioning in large language model (LLM) projects, where demand for high-quality training data remains robust. Revenue growth in China has been particularly strong, achieving consecutive quarterly records and reinforcing confidence in the region’s potential.
While its Enterprise division has yet to gain significant traction, market conditions remain favourable. Appen targets cash EBITDA breakeven on a run-rate basis by early H2 2024, supported by disciplined cost management and a focus on aligning expenditures with revenue opportunities. The company’s reliance on a small group of major technology clients poses risks, as spending patterns remain variable and competition from lower-cost providers intensifies. However, Appen’s extensive global workforce, specialized expertise, and advanced platform provide competitive differentiation in the dynamic AI market. With improving external conditions and momentum in generative AI, the company is well-positioned to leverage growth opportunities while driving profitability and shareholder value.
Source: Company’s Report
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