Vaso Corporation (OTCQX: VASO), a diversified medical technology company specializing in network and healthcare IT services, professional sales services, and proprietary medical products, has announced its financial results for the fourth quarter and full year ending December 31, 2024. Despite a decline in net income, the company achieved record revenue growth, reflecting its strategic initiatives and sustained operational momentum.
Vaso Corporation reported total annual revenue of $86.8 million for fiscal year 2024, marking a 7% increase compared to $81.0 million in 2023. This growth was driven by higher revenues across its IT and professional sales service segments, offset slightly by a decline in its equipment segment. Gross profit rose by 3% to $52.1 million, although net income fell to $1.3 million from $4.8 million in the previous year due to increased operating expenses tied to strategic investments and new program initiatives.
Adjusted EBITDA also declined significantly, reaching $1.4 million in 2024 compared to $5.1 million in 2023. The decrease reflected higher operating costs and lower reported net income during the year.
In the fourth quarter of 2024, Vaso recorded revenue of $27.0 million, a substantial increase of 23.4% compared to $21.9 million in Q4 2023. Growth was evident across all business segments:
- IT Segment: Revenue climbed by 13.6% to $11.1 million, bolstered by higher network service and healthcare IT revenues.
- Professional Sales Service Segment: Commission revenues surged by 31.2% to $15.0 million due to increased equipment deliveries and higher blended commission rates.
- Equipment Segment: Revenue grew by 31% to $921,000, driven by improved equipment sales in China despite lower U.S.-based subscription sales.
Net income for the quarter more than doubled to $2.5 million from $1.1 million in Q4 2023, reflecting strong revenue growth that outweighed higher selling, general, and administrative (SG&A) expenses.
Vaso Corporation’s increased SG&A expenses, up by 7.9% year-over-year, were primarily attributed to personnel expansion and travel costs within its IT and professional sales service segments, as well as professional fees related to a terminated business combination transaction. These investments align with the company’s strategy to enhance operational capabilities and explore external growth opportunities.
Despite the rise in expenses, Vaso maintained positive cash flow from operations at $3.3 million for fiscal year 2024, reinforcing its strong financial position with $26.3 million in cash and cash equivalents as of December 31, 20241. Deferred revenue also increased by 8% to $34.9 million, indicating future revenue potential as underlying products and services are delivered.
The company experienced mixed performance across its segments in the past year. The IT segment saw a 6.4% increase in annual revenue, reaching $43.0 million, fueled by strong managed network service operations. Similarly, the Professional Sales Service segment achieved a 9.3% growth in revenue, totaling $41.3 million, supported by increased equipment deliveries from partners. However, the Equipment segment faced challenges, with revenue dropping by 12.5% to $2.5 million due to lower product sales in China and unfavorable foreign exchange rate impacts.
Dr. Jun Ma, President and CEO of Vaso Corporation, emphasized the company’s ability to sustain top-line growth while maintaining profitability despite challenging market conditions and increased investment activities. He highlighted the firm’s consistent generation of free cash flow as a foundation for future organic growth and potential partnerships or acquisitions.
With diversified operations spanning healthcare IT solutions, medical equipment sales services, and proprietary device manufacturing, Vaso Corporation remains positioned for continued expansion across its core markets.
Vaso Corporation operates through three distinct subsidiaries, each specializing in different aspects of healthcare and technology. VasoTechnology focuses on managed network services and healthcare IT solutions, providing secure and efficient network management for healthcare providers. VasoHealthcare offers exclusive sales representation for GE HealthCare diagnostic imaging products, serving hospitals and imaging centers. Meanwhile, VasoMedical designs and manufactures proprietary medical devices while overseeing international operations, contributing to the company’s diverse portfolio of innovative healthcare solutions. This structure allows Vaso Corporation to deliver a wide range of services and products across the healthcare and IT sectors.
As Vaso continues leveraging its diversified portfolio, its commitment to innovation and strategic investments will play a pivotal role in driving sustainable growth amid evolving industry dynamics.
