Evan Kane's questions to RadNet Inc (RDNT) leadership • Q3 2024
Question
Evan Kane from Barclays asked about the nearly 10% sequential decrease in AI revenue from Q2 to Q3 2024, despite stable mammography volumes. He also questioned if the AI business is still on track for profitability by year-end and asked for current EBCD adoption rates on the East and West Coasts.
Answer
Executive Mark Stolper clarified the sequential AI revenue dip was due to a non-recurring $600,000 implementation fee in Q2; adjusting for this, AI revenue actually grew. He reaffirmed that the AI business is expected to reach profitability in Q4 2024. CEO Dr. Howard Berger reported the EBCD adoption rate is approaching 45% on the East Coast and is around 30% on the West Coast, with the West Coast figure impacted by ongoing negotiations with capitated providers.