Zomedica (ZOM)2023-08-10 23:35Financial Data and Key Metrics Changes - Revenue for Q2 2023 was 4 million, a 33% increase from Q2 2022, with margins at 67% [25] - Operating loss for Q2 was 5.9 million a year ago, but down from 5.3 million, flat compared to the same period last year [29] - Cash, cash equivalents, and available securities were over 187 million a year ago [31] Business Line Data and Key Metrics Changes - TRUFORMA revenue increased by 98% year-over-year, driven by organic growth and new assays [20] - PulseVet products saw a 14% increase year-over-year, reflecting strong demand in the small animal veterinary market [19] - Assisi generated $1 million in incremental revenue for Q2 2023, contributing to overall growth [21] - VetGuardian product line is expected to ramp up revenue as it is introduced through various distributors [22] Market Data and Key Metrics Changes - Approximately 25% of PulseVet revenue was international at the time of acquisition, with expectations for growth in international markets [42] - The company has a wholly-owned subsidiary in Japan and distributors in Europe and South America [42] Company Strategy and Development Direction - The company is focused on achieving cash flow positivity and GAAP profitability through revenue growth and efficient manufacturing [12][15] - Strategic priorities include improving the quality of care for pets and the profitability of veterinarian customers [12] - The company is actively seeking M&A opportunities that are accretive to earnings [13][71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong sales momentum and new product launches [33] - The company expects revenue to increase in subsequent periods due to expanded product lines and acquisitions [24] - Management reiterated guidance for cash flow breakeven in the second half of next year [46][47] Other Important Information - R&D expenses increased significantly due to the buildup of internal capabilities for product development [26] - The company is transitioning manufacturing to its facility in Georgia to improve margins [10] Q&A Session Summary Question: What does the company's debt to income ratio look like? - The company has no debt, only lease obligations, and is in a loss position [36][38] Question: Is the company considering a stock buyback? - The company is focused on growth and does not plan to initiate a stock buyback until achieving cash flow breakeven [41] Question: What percentage of market capitalization has been achieved in Europe? - The company is currently generating about 20% to 25% of its revenue internationally, with significant growth opportunities [42] Question: When will the company sell throughout the U.S. with salespeople? - The company has a direct sales force and is expanding its sales territories opportunistically [44] Question: Are there financing options available to help vets acquire the product? - The company has third-party financing options available for its products [64][65] Question: Why are the assays taking so long to come out? - The company has recently gained the ability to develop its own assays at its own pace, which will improve future timelines [66][67]