On 12th March, ViewRay published financials for its Q4 2019 and full-year 2019 results. These show that sales revenue contracted during the fourth-quarter although revenues remained higher for the year. The sales revenue reached $16.5 million during Q4 2019, compared with €20.7 million in Q4 2018, a decrease of approximately -20% year-on-year. This resulted in full-year sales revenue of $87.8 million, compared with $81 million in 2018, an increase of +8.4% year-on-year.
The impact of Coronavirus
COVID is creating uncertainty surrounding ViewRay’s commercial and operational activities in the near term. This is primarily adversely impacting 9 installations planned for 2020; 2/9 installations are on hold as they are based in Italy and 7/9 are in Asia (China) where travel restrictions still apply, although there are some positive indicators that the situation is improving here. The main uncertainty is around when customers will allow access to ViewRay’s installation teams in order to deliver on these orders. During the Q4 earnings conference call, Scott Drake, President and CEO commented:
“There is uncertainty around Coronavirus in the near term…
Where we are today, we do not intend to go to public markets during 2020 or 2021. Our aspirational goal is to be able to say the same for 2022. Our ability to achieve these goals will be dependant on how our business evolves…
Our commercial and operational activities are being impacted today and maybe further impacted depending upon how the situation unfolds. We have nine planned installations in 2020 in regions with travel restriction currently in place. We cannot predict when ‘on hold’ projects will resume and when the other planned installations will commence. The full impact of coronavirus in 2020 is simply unknown.
We have not any orders cancelled due to Coronavirus.
Hospitals have COVID on the very top of their mind. We have had virtually all of our site visits shut down to any visitors and accounts are frequently shut down to commercial activity at this point. It is difficult to tell how long this persists … it’s difficult to quantify. We do have people in the U.S. and various countries around the world conducting commercial activities but it’s getting increasingly difficult and the situation is remarkably fluid. Out customers are distracted but we have ongoing activity at this time … the situation is changing in a very dynamic way, literally, day-to-day.”
Anticipated Q1 2020 sales revenue
Circa $10 million (referenced during earnings call).
Outlook for 2020
For the full year 2020, ViewRay anticipates total revenue to be in the range of $58 million to $95 million. This indicates between +8% sales growth and a -35% sales revenue contraction relative to the 2019 full-year results. These are wide estimates and primarily reflective of the uncertainty created by the Coronavirus. At the low-end estimate of $58 million, the company is projecting 8 new installations along with 2 upgrades, At the high-end estimate of $95 million, the company is projecting 12 new installations with 3 system upgrades.
Prerequisite Market Intelligence 
