Medicalgorithmics, a medtech company listed on the sWIG80 index, generated over $110,000 (approximately 440,000 PLN) in November from AI service sales to clients in the U.S. Independent Diagnostic Testing Facility (IDTF) market, resulting in $1.3 million in annualized revenue from five new clients. This milestone delivers on the company’s May 2024 projections for growth in the U.S. market. The increasing revenue stream highlights the value of Medicalgorithmics’ technology – earlier this year, the Warsaw Stock Exchange-listed medtech had zero revenue from the U.S. market. Following its strategy, the company is negotiating further agreements with potential new clients, including major U.S. partners.
Since the beginning of the year, Medicalgorithmics has launched services for five new IDTF clients in the U.S. The company’s AI system earns fees based on the number of monthly analyses performed on patients’ ECG data. In May 2024, based on revenue from three active clients in the U.S. IDTF market, the company estimated an average monthly revenue of $110,100 (approximately 440,000 PLN), which it forecasted to generate over 5 million PLN annually. Currently, Medicalgorithmics serves five U.S. IDTF clients and has already reached its projected monthly revenue, recovering 56% of its Q4 2023 U.S. revenue.
“We are consistently executing our growth strategy, and the example of building a revenue stream with U.S. IDTF clients demonstrates that our efforts are well-planned and effective. We have established a stable stream of recurring revenue that will grow steadily as we acquire new clients. These actions are part of our broader plan to dynamically rebuild our U.S. revenue, a key market for Medicalgorithmics. We are making significant progress in this area. In Q3 this year, we recovered over 50% of our Q4 2023 U.S. revenue,” commented Maciej Gamrot, CFO of Medicalgorithmics.
Independent Diagnostic Testing Facilities (IDTFs) play a critical role in the U.S. healthcare system. These centers operate independently of hospitals and perform medical diagnostics. The U.S. IDTF market is valued at approximately $3.5 billion annually. Medicalgorithmics has identified a group of 115 IDTFs that could benefit from its technology, including its AI-based software designed to optimize clinical operations and streamline ECG data analysis.
According to its strategy, Medicalgorithmics focuses on selling high-margin diagnostic software, with hardware sales offered as an optional addition. In Q3, service revenue totaled 5.2 million PLN, with U.S. revenue growing 24% quarter-over-quarter to 1.2 million PLN—recovering 53% of Q4 2023 levels. Since adopting its new growth strategy, the company has secured 13 new clients.