Executive Summary

Revenue grew 47% year over year to $22.1M on three revenue units and one upgrade; gross margin expanded to 4.9% from -11.1% a year ago, signaling early operating leverage .
Orders and backlog strengthened: 8 MRIdian orders totaling $46.3M; backlog increased 27% to $352.8M, underpinning future revenue visibility .
FY22 guidance raised at the low end: revenue range lifted to $90–$104M (from $84–$104M), cash usage reiterated at $68–$83M, supporting a more confident outlook on installations and margin trajectory .
Near-term catalysts include market awareness with Katie Couric Media partnership and relocation of headquarters to Denver to tap bioscience talent, plus regulatory momentum with subsequent China NMPA approval (post-quarter) expanding addressable market .

What Went Well and What Went Wrong

What Went Well

Commercial momentum: 8 MRIdian orders ($46.3M) vs. 7 ($37.9M) YoY; backlog up to $352.8M, improving revenue visibility and future installations .
Gross margin turnaround: Q2 gross margin 4.9% vs. -11.1% YoY; total gross profit $1.1M vs. gross loss of $1.7M in Q2 2021, aided by higher system revenues and installations .
Management confidence and awareness push: “Business momentum is increasing as rapid revenue growth is translating into significant gross margin expansion... we believe that we have the balance sheet required to get to cash flow breakeven,” said CEO Scott Drake; announced partnership with Katie Couric Media to accelerate awareness .

What Went Wrong

Operating expenses elevated: Total OpEx rose to $30.9M (includes $1.8M impairment) vs. $24.8M YoY; still materially loss-making with net loss of $27.6M (EPS $(0.15)) .
Ongoing cash burn: Q2 cash usage ~$22.5M; cash and equivalents (incl. restricted cash) $160.7M, highlighting continued funding needs to reach breakeven .
Macro/supply chain risk persists: Company notes potential disruptions and inflation impacts on materials, components, and logistics within forward-looking disclosures .

Financial Results

Revenue, EPS, Gross Margin – YoY and Sequential

Metric	Q4 2021	Q1 2022	Q2 2022	YoY: Q2 2021 → Q2 2022
Total Revenue ($USD Millions)	$20.4	$18.9	$22.1	$15.0 → $22.1 (+47%)
Net Loss ($USD Millions)	$(27.1)	$(25.8)	$(27.6)	$(31.0) → $(27.6)
Diluted EPS ($)	$(0.16)	$(0.14)	$(0.15)	$(0.19) → $(0.15)
Gross Margin (%)	(1.0%) approx from gross loss vs revenue (see detail)	0.5%	4.9%	-11.1% → 4.9% (+1,600 bps)

Notes: Q4 2021 GM was slightly negative with gross loss of $0.2M on $20.4M revenue .

Segment Revenue Breakdown

Revenue ($USD Thousands)	Q4 2021	Q1 2022	Q2 2022	Q2 2021
Product	$15,443	$13,426	$16,457	$10,917
Service	$4,825	$5,331	$5,573	$3,994
Distribution Rights	$119	$119	$119	$119
Total	$20,387	$18,876	$22,149	$15,030

Key KPIs and Operational Metrics

KPI	Q4 2021	Q1 2022	Q2 2022
MRIdian Orders ($USD Thousands)	$40,700	$40,880	$46,275
MRIdian Orders (#)	7	7	8
Backlog ($USD Thousands)	$313,354	$330,894	$352,809
Cash & Equivalents ($USD Thousands)	$218,348	$180,061	$157,594 cash; $160,700 incl. restricted
Cash Usage ($USD Millions)	~$7 in Q4	$35.2	$22.5
Gross Profit ($USD Thousands)	$(209)	$94	$1,091

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Millions)	FY 2022	$84–$104	$90–$104	Raised low end
Total Cash Usage ($USD Millions)	FY 2022	$68–$83	$68–$83	Maintained

Management reaffirmed pathway to cash flow breakeven, citing tight expense discipline and margin expansion as installations scale .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2021)	Previous Mentions (Q1 2022)	Current Period (Q2 2022)	Trend
Innovation (MRIdian A3i, brain package)	Launch of A3i; features to streamline adaptive workflow, brain treatment package	Continued A3i emphasis; improved throughput and ease of use	A3i went live at Henry Ford and Miami; workflow enhancements and reduced treatment times; first GBM patients treated	Advancing commercialization and utilization
Clinical evidence (MIRAGE, SMART Pancreas)	Interim MIRAGE data showing reduced toxicity vs CT; upcoming SMART Pancreas	Pipeline breadth/depth; MIRAGE/SCIMITAR/SMART Pancreas highlighted	Emphasis on clinical outcomes; upcoming trials (SMART Pancreas, Lung STAAR, FORT, SHORTER)	Strengthening clinical validation
Market awareness	Building awareness initiatives	Patient awareness gaining traction	Partnership with Katie Couric Media to drive national awareness	Scaling outreach
Commercial pipeline/installs	Robust pipeline; drive growth	Clear line of sight to >100 installations; strong backlog	~70 systems in planning/install; customers accelerating launch; adoption in US/EU	Install base expanding
Margins and P&L leverage	FY22 guidance; cash usage expectations	Path to breakeven; 750–1,000 bps gross margin improvement from placements	Gross margin +1,600 bps YoY; reiterated margin expansion and expense leverage	Improving
Macro/supply chain/inflation	Risk disclosures on supply chain/inflation	Risk disclosures reiterated	Continued caution on supply chain/inflation impacts	Persistent external risk

Management Commentary

Scott Drake, President & CEO: “Business momentum is increasing as rapid revenue growth is translating into significant gross margin expansion. With tight expense discipline, we believe that we have the balance sheet required to get to cash flow breakeven.”
On market awareness: “We’re excited to partner with Katie Couric and her team to spread awareness that short-course, non-invasive treatment with fewer side effects and better quality of life for cancer patients is available today at MRIdian centers.”
On headquarters move: “ViewRay is excited that Colorado will be the international headquarters for this innovative cancer therapy... we are committed to conquering cancer by re-envisioning radiation therapy because lives depend on it.”

Q&A Highlights

Topics discussed included FY22 guidance clarification (raising revenue low end and reiterating cash usage), drivers of gross margin expansion (installations, cost-down measures), throughput improvements with A3i, and demand/backlog conversion dynamics; supply chain and inflation sensitivities were addressed in risk context .
Management highlighted accelerating installation cycles and operational discipline as key levers to reach cash flow breakeven, consistent with prepared remarks and slides .
Awareness initiatives and clinical data cadence were framed as strategic drivers for adoption, with partnership announcements underscoring near-term outreach .

Estimates Context

S&P Global consensus estimates for Q2 2022 could not be retrieved due to missing CIQ mapping for VRAYQ; therefore, comparisons vs Wall Street consensus are unavailable. Values retrieved from S&P Global were unavailable due to mapping constraints.*

Implication: In absence of formal consensus, investors should anchor on the company’s stronger-than-expected YoY revenue growth, gross margin improvement, and the raised FY22 revenue low end to assess likely estimate revisions .

Key Takeaways for Investors

Revenue and margin momentum: Q2 revenue +47% YoY; gross margin improved 1,600 bps YoY to 4.9%, indicating early operating leverage as installations scale .
Strengthening demand signals: 8 orders and $352.8M backlog provide multi-quarter visibility; orders totaled $46.3M in Q2 .
Guidance credibility: FY22 revenue range raised to $90–$104M; cash usage reaffirmed at $68–$83M, suggesting confidence in execution despite macro headwinds .
Strategic catalysts: Katie Couric Media partnership (awareness), HQ move to Denver (talent pool), and subsequent China NMPA approval expand commercialization vectors and potential pipeline conversion .
Watch operating discipline: Elevated OpEx and continued cash usage underscore the importance of cost management and backlog-to-revenue conversion cadence .
Near-term trading lens: Positive narrative on guidance and margins may support sentiment; monitor installation timing, supply chain conditions, and additional clinical readouts for incremental upside/risks .
Medium-term thesis: Execution on A3i throughput gains, clinical data validation (SMART Pancreas, Lung STAAR), and international expansion should drive sustained revenue growth and margin expansion toward breakeven .

ViewRay, Inc. (VRAYQ)·Q2 2022 Earnings Summary