Optomed - Health technology company

[Juha_Kinnunen]

@Mr_Stock

In Optomed’s case, one could interpret that we are now in this intermediate stage: devices are sold first, AI licenses and usage appear on the balance sheet, but the euros are not yet visible on the Software line. Management itself speaks of conversions “over the coming years”.

• Deferred revenue cannot come from device sales
  → devices are recognized immediately as revenue
• It arises only from either:
  • licenses
  • usage/AI fees
  • service agreements

In my opinion, this is an accounting fact, not an interpretation.

Hi,

Devices are recognized immediately as revenue if they are sold. That is, a so-called CAPEX deal is made and ownership is transferred. The Aurora AEYE total solution is sold as a monthly-billed service, which includes the device and the AI service (the AI is provided by AEYE Health). Ownership does not transfer; instead, “rent” is paid for the whole package (incl. device) for, for example, a four-year period. And all of this happens in the Devices segment, where the company reports the total solution.

You are of course right that Optomed’s revenue accrues more slowly with monthly billing than in a CAPEX deal, where the entire sum would be received at once at the time of the sale. On the other hand, significantly more revenue accumulates over that period than would happen with a device sale alone. This Aurora AEYE revenue stream has been modest so far, but it has been growing steadily. However, we will have to wait until at least next year for a bigger “breakthrough.”

Then this picture is further complicated by the fact that Optomed has reported selling significant quantities of the Aurora IQ camera (as a CapEx deal) thanks to the fact that the customer can later implement the AI component. In that case, it becomes an Aurora AEYE. So, it is partly also device sales with the possibility for a share of the AI component later. It is not known how the revenue stream in this specific case would then be split between Optomed and AEYE Health. And of course, there is no certainty about that conversion either, even though it would apparently succeed with the push of a button.

There is of course also potential in Software if Optomed manages to build an “ecosystem” in the future around the device, AI(s), and its own software platform. This is, however, quite a distant possibility for now, and would, in my opinion, first require success in growing the Aurora AEYE device base.

@Mr_Stock

Question: do you think this is a credible interpretation of Optomed’s situation, or is there a material difference compared to previous peers (AI implementation, pricing, workflows) that makes the recurring case weaker (it would be particularly interesting to get @Juha_Kinnunen’s opinion/view)?

Maybe I wouldn’t go comparing these too much, but in Optomed’s case, recurring revenue is at least at the core of our investment case. It’s possible to give quite a wild EV/S multiple for Aurora AEYE’s recurring revenue stream, especially since that multiple is also pretty much directly an EV/EBITDA multiple. That revenue stream is pretty much direct margin after the delivery of the device. Of course, this includes the assumption that in the long run, the Aurora AEYE revenue stream can be converted into Lumo AEYE (or other AI) revenue stream. Otherwise, that revenue stream would not last very many years, nor could it be “valued” as recurring far into the future. But at the moment, it seems that with Lumo, the technological lead is at least not shrinking. Of course, FDA approvals must be obtained and studies conducted, but what investment would be without risks.

Hopefully this clarified things!

[Mr_Stock]

@Juha_Kinnunen

Hi,

Devices are recognized as revenue immediately if they are sold. That is, a so-called CAPEX deal is made and ownership is transferred. The Aurora AEYE total solution is sold as a monthly-billed service, which includes the device and the AI service (AI is provided by AEYE Health). Ownership is not transferred; instead, “rent” is paid for the package (incl. the device), for example, over a four-year period. And all of this happens in the Devices segment, where the company reports the total.

You are, of course, right that Optomed’s revenue accumulates more slowly with monthly billing than in a CAPEX deal, where the entire amount would be received at once at the time of the sale. On the other hand, significantly more revenue accumulates over that period than would occur through a device sale alone. This Aurora AEYE revenue stream has been minor so far, but it has been growing steadily. However, we have to wait until at least next year for a bigger “breakthrough.”

Furthermore, the situation is complicated by the fact that Optomed has reported selling significant quantities of the Aurora IQ camera (as a CAPEX deal) because customers can later implement the AI component. At that point, it becomes Aurora AEYE. So, it’s also partly device sales with the potential for a share of the AI component later on. It is not known how the revenue stream would specifically be divided between Optomed and AEYE Health in this case. And, of course, there is no certainty about that conversion, even if it supposedly works at the push of a button.

There is, of course, also potential in the software if Optomed manages to build an “ecosystem” in the future around the device, the AI(s), and its own software platform. However, this is a fairly remote possibility for now and would, in my opinion, first require success in growing the Aurora AEYE installed base.

@Mr_Stock

Question: do you think this is a credible interpretation of Optomed’s situation, or is there a significant difference compared to previous peers (AI implementation, pricing, workflows) that makes the recurring case weaker (it would be particularly interesting to get @Juha_Kinnunen’s opinion/view)?

Perhaps I wouldn’t compare these too much, but for Optomed, recurring revenue is at the core of our investment case. One can certainly assign a quite massive EV/S multiple to the Aurora AEYE recurring revenue stream, especially since that multiple is also quite directly an EV/EBITDA multiple. That revenue stream is pretty much direct margin after the delivery of the device. Of course, this assumes that in the long run, the Aurora AEYE revenue stream can be converted into a Lumo AEYE (or other AI) revenue stream. Otherwise, that revenue stream wouldn’t last many years, and it couldn’t be “valued” as a perpetual recurring stream far into the future. But right now, it seems that with Lumo, the technological lead is at least not shrinking. Of course, FDA approvals need to be obtained and studies conducted, but what investment doesn’t have risks.

Hopefully, this clarified things!

Thank you for the answers/insights. That cleared up a lot… we are living in interesting times, to say the least, with this case. Next year will give a lot of signals as to which direction we are headed

[kivimies]

Not a single announcement from Optomed regarding completed deals in 2025.

Well, there’s still one day left of this year.

[Maximus12]

Well, that’s it for this year.. Tomorrow we’ll drink whiskey and set off fireworks.

[MikiMiki]

Ilmarinen has invested in Optomed. 263,000 shares.

Kyösti Kakkonen has returned with 51,000 shares.

Proprius has added 45,000 shares.

Osakkeenomistajat

[Choyoba_Capital]

Broad interest from funds and pension insurance companies. I suspect they aren’t looking for quick profits from the offering. I liked what I saw regarding what kind of owners the offering apparently largely went to

[Sheikki]

@Choyoba_Capital

Broad interest from funds and pension insurance companies. I suspect they aren’t looking for quick profits from the offering. I liked what I saw regarding the types of owners the offering largely went to

Indeed, funds loaded up from the offering on a broad front; it’s good to see there’s plenty of interest. Most of the other selling seems to have come from SEB liquidating their position, and their bag is nearly empty, save for the final dump. This bodes well for a January rally setup!

[Mr_Stock]

Sell orders are dropping at such a rate that it looks like a “final flush” is underway. The trading volume is quite brisk.

[j.salli]

Optomed activity list for 2026.

1. Large and mid-sized US players move from long-term pilots to scaling.
2. The China Wiser validation process reaches the finish line and operations start.
3. India: many processes underway (Ville Pitkänen LinkedIn); processes are completed and operations start.
4. Africa kicks off.
5. Screening + AI activities in Europe gain more momentum on a country-by-country basis.
6. The Middle East continues to progress.
7. Santa Claus brings a nice gift… Lumo Aeye receives FDA approval.
8. Himberg announces a few large US customers in Q1.
9. Top 10 Pharma announcement and the start of collaboration.

I personally look forward to news from India and China with interest. India, in particular, has received far too little attention. In both India and China, the state is strongly supporting and promoting the implementation of screening + AI activities. These countries have a total of about 220 million diabetics (USA 40 million), so there is plenty of market to go around.

“““““““

A little edit addition to that list, as I happened to forget one small and modest detail

[Sheikki]

Optomed Lumo is a clever device. The Retcad AI algorithm owned by Revenio/iCare is integrated into Lumo, and according to Mainline’s page, no internet connection is required for the assisted AI analysis.

The Future is Remote: How AI & Teleophthalmology are Redefining Retinal...

Revolutionizing retinal eye care with AI-powered image analysis

[BullionBabble]

Lumo’s development has progressed further than I expected. Apparently, it runs on some kind of Linux if a trained model can be run on it. Fantastic if that’s the case. It certainly beats the Remidio FOP NM-10 camera and their offline AI 100-0 in terms of oculomics and accuracy, thanks to its better optics and 50-degree field of view. Not an easy nut to crack for competitors.

[Mr_Stock]

Marketing @UK… they are highlighting Lumo quite strongly

#retinalimaging #eyecareinsight #optomed #lumo | Mainline Instruments

[Bob_Fleming]

Shares are hitting the market at such a rate that it looks like a “final sell-off” is underway. Trading volume is quite brisk.

I don’t think there’s any fear of it ending. 1.76M new shares just hit the market. My optimistic guess is that 500-700K of them will go up for sale immediately in hopes of quick profits. Unfortunately, the selling pressure hasn’t gone anywhere, especially since the company’s communication policy is what it is.

[Mr_Stock]

There sure has been plenty of updates and it’s great for us owners to still be around. Hopefully ”Reiska” knows what he’s talking about and means this year:

Optomed leadership team and Board of Directors have spent the past two days...

“As a board member, while waiting for the results of operations and the increase in the share value, I am confident” feat. Reijo Tauriainen board member of Optomed

Edit: I’ve been waiting for someone to comment on that post already, but apparently no one has ”dared” to yet

[Koukku1]

It is taking quite a long time for the completion of the Toku eyes (Topcon) CLAir Pivotal study. Lumoa could then be used to pass the same study if the Topcon camera does not receive approval. Himberg mentioned last time that the Study can be started before Lumoa has 510(k) clearance. He also mentioned earlier that the results for the Topcon camera should come first.

At least no Study has been found yet for Lumoa’s camera research, if one is even needed (provided the accelerated process is successful). There was speculation here that the studies mentioned in the share issue refer to Lumoa’s clearance, but it could also be some other study where Lumoa or Aurora is used.

[JussiW]

It’s hard to imagine that many of the subscribers in the offering (at least not 28-40%) are chasing a quick profit of well under 10%, especially with a relatively illiquid stock…..

[Tobias]

Beckley Medicaid Members Now Eligible for Free Diabetic Eye Exams and A1C...

Spotted on a neighboring forum. Things seem to be progressing.

[vesuri]

@Tobias

Spotted on a neighboring forum. Things seem to be moving forward.

Earlier similar news:

@Sheikki

Retina Labs’ screening business is gradually expanding.

https://www.wtrf.com/top-stories/free-eye-exams-a1c-tests-now-offered-to-medicaid-members-in-west-virginia/

The news here seems to be that Medicaid screening, including home visits, is expanding, although they are only talking about cities of approx. 20,000 inhabitants at a time (Wheeling in the news linked by @sheikki, now Beckley as a new one). What’s positive here is, of course, that this partly reinforces the narrative that there is also demand for portable cameras. But tell me, do we have any insight into how Retina Labs screens these images? Are they using Aurora + AEYE or just the camera?

[Mr_Stock]

Topcon acquired Iris. It is therefore crystal clear that Iris’s website features, for instance, Signal (Optomed’s white label), but could those more knowledgeable explain WHY the Optomed Aurora is also in the photos on the page in question (isn’t this always with AEYE-ai)?

Diabetic Teleretinal Screening Solutions | IRIS

[Mr_Stock]

I think it’s still human read, but in my opinion, this also supports what Himberg has said => screeners are buying at an accelerating rate and are therefore winning the market, because of the possibility to implement an AI component later on.