Radnet, Inc. has reported its financial results for the fourth quarter of 2023, boasting a record revenue of $420.4 million, up 9.5% from $383.9 million in the fourth quarter of 2022. Excluding revenue from the artificial intelligence (AI) reporting segment, revenue from the imaging center reporting segment in the fourth quarter of 2023 was $415.3 million, marking an increase of 8.6% from the same period in 2022.
The adjusted EBITDA from the imaging center reporting segment reached a record $68.3 million, compared to $61.6 million in the fourth quarter of 2022, representing an 11.0% increase. Adjusted earnings per share for the fourth quarter of 2023 were reported at $0.20, up from $0.11 in the fourth quarter of 2022.
The company announced that aggregate procedural volumes increased by 7.9%, while same-center procedural volumes increased by 5.5% compared to the fourth quarter of 2022. Additionally, AI revenue for the fourth quarter of 2023 experienced a substantial 278.4% increase from the same period in 2022.
Radnet also revealed the formation of a new digital health financial reporting segment, which combines its software and informatics businesses with its AI operations. The company has also signed a definitive agreement to enter the Houston, Texas market through a platform acquisition consisting of seven imaging centers.
Looking ahead, Radnet has released its 2024 guidance ranges, anticipating increases in revenue, adjusted EBITDA, and free cash flow for 2024 over 2023 in both the imaging center and digital health reporting segments. Within the digital health reporting segment, AI revenue is expected to increase by over 65% from 2023, with AI adjusted EBITDA projected to achieve break-even by the end of 2024.
Dr. Howard Berger, President and CEO of Radnet, highlighted that the company's performance in the fourth quarter of 2023 was the result of strong industry trends and execution on a multi-pronged growth strategy. He emphasized that the core imaging center segment experienced significant growth in same-center procedural volume, revenue, and adjusted EBITDA compared to the fourth quarter of 2022.
Radnet's financial position and operating model have presented opportunities for business expansion, with plans to open approximately a dozen new facilities during 2024 and to continue expanding existing health system joint ventures and partnerships. The company also aims to leverage its initiatives in information technology and digital health, including the migration of proprietary software solutions to the cloud and the expansion of AI-enhanced programs in breast, lung, and prostate screening.
Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $46.98. Check out the company's full 8-K submission here.
