Zomedica (ZOM) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $6.3 million, reflecting over 14$4.1 million, with a gross profit margin of 66%, aligning with previous guidance of 65% to 70% [51] - Net loss for Q1 2024 was $9.2 million, compared to a net loss of$6.4 million in Q1 2023 [57] Business Line Data and Key Metrics Changes - Capital revenues for Q1 2024 were $2.2 million, up 30$1.7 million in Q1 2023, driven by increased device placements in small animal and mixed vet practices [46] - Consumables revenue grew to $4 million, a 7$3.8 million in Q1 2023, representing 64% of total revenue [48] - Diagnostic segment revenues were approximately $744,000, an 87$50 million in revenue by the end of 2025, increasing to over 100 million two years later [38] - Zomedica is focused on expanding its product portfolio through business development and M&A activities, leveraging its strong balance sheet [39] - The company is investing in R&D, with a doubled expenditure of 1.8 million in Q1 2024 compared to $900,000 in Q1 2023 [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on significant market opportunities throughout 2024 and beyond, following a record-setting 2023 [45] - The company expects to achieve cash flow breakeven or profitability when reaching an annual revenue run rate of approximately$50 million, anticipated in late 2025 [60] Other Important Information - The company ended Q1 2024 with $90.9 million in cash and cash equivalents, with a cash burn expected to be between$12 million to 18 million for the year [58][61] - Zomedica has a robust intellectual property portfolio with 201 issued patents and 61 pending patents, which protects its innovative solutions [42][43] Q&A Session Summary Question: How many of your products are approved for overseas sales? - Currently, three products are approved for overseas sales, with potential for more by the end of the quarter [69] Question: Do you expect to show profitability in the near future, especially with your EU approval? - Profitability is expected on a cash flow basis when annual revenue reaches about 50 million, anticipated in late 2025 [70] Question: Will there be a stock buyback? - The company does not plan to initiate a stock buyback, prioritizing cash preservation for operational needs and potential acquisitions [71] Question: Where are most of your customers located? - The company sells products in all 50 states, with a concentration in areas with significant equine activity [73] Question: What is the current cash position and expected low point? - The company ended the quarter with $90.9 million in cash, with a projected low watermark of$65 million to $75 million [76][77]