Radnet Inc (NASDAQ:RDNT) stock fell 4.23% (As on November 12, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 24. Revenue from the Digital Health reportable segment (inclusive of intersegment revenue) increased 34.3% to $16.4 million in the third quarter of 2024 from $12.2 million in the third quarter of 2023. Digital Health Revenue growth resulted in part from a $2.2 million (or 75.8%) increase in AI Revenue, which climbed to $5.1 million during the third quarter of 2024 from $2.9 million in the third quarter of 2023. Total Company Adjusted EBITDA was $73.7 million in the third quarter of 2024 as compared with $57.9 million in the third quarter of 2023, an increase of 27.2%; Digital Health reportable segment Adjusted EBITDA increased 41.7% to $3.3 million in the third quarter of 2024 from $2.3 million in the third quarter of 2023. Total Company Adjusted EBITDA margins increased by 156 bps to 16.0% in the third quarter of 2024 as compared with 14.4% in the third quarter of 2023. Aggregate procedural volumes in the third quarter of 2024 increased 9.0% and same-center procedural volumes increased 5.5% compared with the third quarter of 2023. As of September 30, 2024, the company had a cash balance of $748.9 million and Net Debt to Adjusted EBITDA ratio of below 1.0x.

Moreover, the company continues to expand capacity through the development and construction of new imaging centers. Since the start of the year, the company have opened five new centers, and the company anticipates opening an additional three centers before year end. Furthermore, the company have 15 centers in various stages of construction and development which the company intend to open during 2025. The company remains on pace for the commercial launch of DeepHealth OS at the RSNA convention this year taking place December 1^st through 4^th in Chicago.

RDNT in the third quarter of FY 24 has reported the adjusted earnings per share of 4 cents, missing the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported the adjusted revenue growth of 14.7 percent to $461.14 million in the third quarter of FY 24, beating the analysts’ estimates for revenue of $433.91 million.

The company expects Imaging Center Segment 2024 sales of $1.71 billion—$1.76 billion, up from prior guidance of $1.685 billion—$1.735 billion.