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Monday, November 11, 2024

RadNet Soars 20.3% Pre-Market on AI-Driven Growth and Upgraded Guidance

 RadNet (NASDAQ:RDNT) is on a roll, smashing revenue records in Q3 2024 with a 14.7% year-over-year jump to $461.1 million. Its share price jumped by more than 20% in the pre-market trading today. The Digital Health segment is the real showstopper, with revenue soaring 34.3%, thanks to a 75.8% spike in AI-powered tools like its Enhanced Breast Cancer Detection (EBCD) program. While adjusted EPS of $0.18 missed analyst estimates by $0.06, the company delivered a stellar 27.2% boost in adjusted EBITDA, showcasing resilience against rising costs and strong demand for advanced imaging.

CEO Dr. Howard Berger isn't just celebrating; he's doubling down on growth. The launch of RadNet's DeepHealth OS platform at December's RSNA conference is set to put the company's AI innovation in the spotlight. Meanwhile, procedural volumes surged 9%, and same-center volumes climbed 5.5%, prompting RadNet to raise its full-year guidance for revenue, adjusted EBITDA, and free cash flow. The revised revenue target now sits between $1.71 billion and $1.76 billion, cementing the company's upward trajectory and signaling confidence in its strategic investments.

And the balance sheet? Rock solid. With $748.9 million in cash and a record-low leverage ratio below 1.0x, RadNet is locking in its financial strength while aggressively expanding. Investors should keep their eyes on the DeepHealth OS debut, which could unlock a new growth chapter as AI-powered healthcare transforms the industry. RadNet isn't just keeping up with demandit's defining the future of diagnostic imaging.

GE HealthCare and RadNet Forge Collaboration to Transform Imaging Systems and Accelerate the Adoption of Artificial Intelligence (AI) with SmartTechnology™

  • Collaboration will leverage GE HealthCare’s legacy and scale of imaging innovation and RadNet’s DeepHealth AI-powered clinical and workflow solutions to further the innovation, commercialization, and adoption of AI in imaging.
  • Together, GE HealthCare and RadNet’s DeepHealth aim to create SmartTechnology™ solutions that harness the power of AI to help redefine radiology workflows and address key challenges across the imaging value chain to improve speed, clinical accuracy, operational efficiency, and elevate patient care.
  • To demonstrate the promise of this strategic relationship, the collaboration will first work to bring together DeepHealth’s AI-powered SmartMammo™ 1 solution with GE HealthCare’s patient-centric Senographe Pristina™ mammography system to enhance the way women receive breast care.
  • The two companies intend to explore additional areas of collaboration to further expand the access and impact of AI-based workflows in other imaging modalities.

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