Zomedica Announces First Quarter 2024 Financial Results: Revenue up 14% to $6.3 Million; 66% Gross Margin, and $91 Million in Liquidity
Zomedica Corp. (NYSE American:ZOM) reported its first quarter 2024 financial results, showcasing a 14% revenue increase to $6.3 million, with a 66% gross margin and $91 million in liquidity. The company's revenue growth was driven by both the Therapeutic Devices and Diagnostics segments, with consumable revenues reaching $4.0 million and capital revenues hitting $2.2 million. Zomedica's CEO, Larry Heaton, expressed optimism for future growth opportunities as the company continues to expand its portfolio and commercial organization.
Zomedica achieved a 14% increase in revenue to $6.3 million for the first quarter of 2024, marking a new record for the company.
The company's gross margin stood at an impressive 66% for the quarter.
Zomedica reported $91 million in liquidity, providing a strong financial position moving forward.
The company's revenue growth was driven by both the Therapeutic Devices and Diagnostics segments, with consumable revenues growing to $4.0 million and capital revenues increasing to $2.2 million.
Zomedica's CEO, Larry Heaton, highlighted the positive impact of the expanded portfolio and commercial organization on the company's growth trajectory.
Zomedica reported a net loss of $9.2 million for the first quarter of 2024, compared to a net loss of $6.4 million for the same period in 2023.
The company's non-GAAP EBITDA loss for the quarter was $7.5 million, compared to a loss of $4.1 million in the previous year.
Operating expenses increased by $3.2 million, primarily driven by research and development, selling and marketing, and general and administrative expenses.
Insights
Examining Zomedica's recent financial results reveals both strengths and areas for caution within their business model. A 14% year-on-year revenue growth is robust, particularly considering the 86% growth in the Diagnostics segment, which could indicate strong market adoption of Zomedica's products and potential for further expansion. However, the overall net loss increase from $6.4 million to $9.2 million should raise investor awareness about the company's cost management and the viability of its growth strategy in the face of escalating operating expenses, which surged by 28%.
The reported 66% gross margin maintains industry competitiveness, yet investors should monitor how sustainable these margins are given the significant R&D and operating expenditures. With a solid liquidity position of $90.9 million, Zomedica appears to be well-capitalized in the short-term, but the cash burn, if continued at the current rate, could become a concern in the long-term.
From the perspective of a retail investor, the forward-looking guidance projecting revenue growth up to 39% could be seen as positive, but it's vital to consider whether these projections are attainable amid the increased spend and the competitive landscape. Additionally, the lack of inclusion of potential acquisition benefits in the projections could present upside risks if successful acquisitions are made. All things considered, these financial figures provide a mixed outlook, warranting a cautious optimism.
The veterinary health sector is rapidly evolving, with a clear trend towards more advanced diagnostic and therapeutic technologies. Zomedica's focus on point-of-care diagnostic products for animals places it in a niche with growth potential, as pet owners and veterinary practices show an increasing preference for immediate and accurate health solutions.
The impressive growth in the Therapeutic Devices and Diagnostics segments indicates that Zomedica is capturing market share and effectively leveraging its expanded portfolio. This strategic alignment with market trends could lead to further revenue growth. Nonetheless, the company's ability to scale effectively and manage costs will be critical, especially since the veterinary health market is known for pricing sensitivity and competitive pressures.
Investors should also consider the impact of Zomedica's ongoing investments in AI and R&D, as these could lead to innovative products that could disrupt the market and improve the company's competitive stance. The challenge lies in translating these investments into profitable revenue streams before the competition catches up or technological obsolescence sets in.
Performance Sets New Record for First Quarter Revenue
ANN ARBOR, MI / ACCESSWIRE / May 9, 2024 / Zomedica Corp. (NYSE American:ZOM) ("Zomedica" or the "Company"), a veterinary health company offering point-of-care diagnostic and therapeutic products for equine and companion animals, today reported consolidated financial results for the first quarter ended March 31, 2024.
2024 First Quarter Financial Highlights
Revenue for the first quarter of 2024 grew
- Consumable revenues grew to
$4.0 million , up7% over first quarter 2023 revenues of$3.8 million , and represent64% of total sales. - Capital revenues grew to
$2.2 million , up30% over first quarter 2023 revenues of$1.7 million .
Gross margin was
Total cash used during the quarter was
"During the first quarter, we built on the momentum generated during 2023," commented Zomedica Chief Executive Officer, Larry Heaton. "As we continued to execute on our strategy to drive growth in 2024 and beyond, we delivered the strongest first quarter in company history.
"We are seeing the positive impact of our significantly expanded portfolio combined with the growth and optimization of our commercial organization. Supporting the accelerated adoption of our innovative technologies was a series of clinical data publications specifically highlighting the benefits of PulseVet across multiple indications as well as the diagnostic efficacy of TRUFORMA as compared to competitive platforms."
"Looking ahead, we remain enthusiastic about the opportunity that exists for Zomedica. With our strategy in place to accelerate growth, maintain industry-leading margins, and capture efficiencies, we are very well positioned to scale the business to achieve profitability and grow revenue to
2024 First Quarter Results Review
Revenue for the three months ended March 31, 2024, was
Cost of revenue was
Operating expenses were
Research and development expenses were
Selling and marketing expense was
General and administrative expense was
Net loss for the three months ended March 31, 2024, was
*Non-GAAP EBITDA loss (which includes adjustments for stock compensation) for the three months ended March 31, 2024, was
Liquidity and Outstanding Share Capital
Zomedica had cash, cash equivalents, and available-for-sale securities of
As of March 31, 2024, Zomedica had 979,949,668 common shares issued and outstanding.
2024 Business Outlook and Financial Guidance
For the full year 2024, the Company continues to expect full year revenue in the range of
Zomedica believes that growth in 2024 will be driven by its existing portfolio, including recently launched products, supported by investments the Company is making to continue to drive increased adoption and utilization of its products, as well as contributions from a number of new products that the Company expects to launch during 2024. Guidance for 2024 does not incorporate any positive benefits from acquisitions the Company may make during the year.
The Company expects that on a quarterly basis, revenues should increase sequentially from the first quarter, with the majority of revenue expected to be recorded during the back half of the year.
For complete financial results, please see Zomedica's filings on EDGAR and SEDAR or visit the Zomedica website at www.zomedica.com.
For percentage calculations please refer to the financial statements filed with the SEC on Thursday May 9, 2024 along with other public filings
Conference Call Details
Zomedica will host a conference call on Thursday, May 9, 2024, at 4:30 p.m. ET to discuss the Company's operational and financial highlights for its first quarter ended March 31, 2024. A question-and-answer session will follow management's prepared remarks.
Event: Zomedica Corp. Q1 2024 Financial Results Conference Call
Date: Thursday, May 9, 2024
Time: 4:30 p.m. Eastern Time
Live Call: +1-888-886-7786 (U.S. Toll-Free) or +1-416-764-8658 (International)
Webcast: LINK
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until Thursday, May 23, 2024, at 11:59 PM ET and can be accessed by dialing +1-844-512-2921 (U.S. Toll-Free) or +1-412-317-6671 (International) and entering replay pin number: 72335729.
About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) is a veterinary health company creating products for horses, dogs, and cats by focusing on the unmet needs of clinical veterinarians. Zomedica's product portfolio includes innovative diagnostics and medical devices that emphasize patient health and practice health. Zomedica's mission is to provide veterinarians the opportunity to increase productivity and grow revenue while better serving the animals in their care. For more information, visit www.zomedica.com.
Follow Zomedica
- Email Alerts: http://investors.zomedica.com
- LinkedIn: https://www.linkedin.com/company/zomedica
- Facebook: https://m.facebook.com/zomedica
- X (formerly Twitter): https://twitter.com/zomedica
- Instagram: https://www.instagram.com/zomedica_inc
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements, our ability to realize upon our business plans and cost control efforts and the impact of COVID-19 on our business, results and financial condition.
Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: the outcome of clinical studies, the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments, uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and verification and validation studies; uncertainty as to the timing and results of commercialization efforts, as well as the cost of commercialization efforts, including the cost to develop an internal sales force and manage our growth; uncertainty as to our ability to successfully integrate acquisitions; uncertainty as to our ability to supply products in response to customer demand; uncertainty as to the likelihood and timing of any required regulatory approvals, and the availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; performance by our strategic partners of their obligations under our commercial agreements, including product manufacturing obligations; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to any required clinical trials and regulatory approvals, risks relating to the safety and efficacy of our products, the use of our products, intellectual property protection, risks related to the COVID-19 pandemic and its impact upon our business operations generally, including our ability to develop and commercialize our products, and the other risk factors disclosed in our filings with the SEC and under our profile on SEDAR+ at www.sedarplus.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Investor Relations Contact:
Zomedica Investor Relations
investors@zomedica.com
1-734-369-2555
Non-GAAP Measures
Non-GAAP EBITDA, Adjusted Non-GAAP EBITDA, and other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies. Management uses the identified non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Zomedica's on-going operations and provide important supplemental information to management and investors regarding financial and business trends relating to Zomedica's financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented below.
* Non-GAAP EBITDA is defined as net loss and comprehensive loss excluding amortization, depreciation, non-cash stock compensation, and taxes while reversing out the benefits derived from net interest income.
** Non-GAAP Adjusted EBITDA is defined as Non-GAAP EBITDA, as defined above, excluding non-recurring items; including but not limited to specialized accounting, tax, and audit services, costs associated with programs related to regaining and maintaining compliance with the NYSE, as well as the QBT integration and associated direct labor costs, and other one-time items.
| For the 3 Months Ended | ||||||||||||||||
| As Presented | One-Time Items | Adjusted | As Presented | |||||||||||||
| 3/31/2024 | 3/31/2024 | 3/31/2024 | 3/31/2023 | |||||||||||||
Net revenue | $ | 6,262 | $ | - | $ | 6,262 | $ | 5,482 | ||||||||
Cost of revenue | 2,145 | (266 | ) | 1,879 | 1,647 | |||||||||||
Gross profit | 4,117 | 266 | 4,383 | 3,835 | ||||||||||||
Expenses | ||||||||||||||||
General and administrative | 8,625 | (1,605 | ) | 7,020 | 7,013 | |||||||||||
Research and development | 1,771 | (322 | ) | 1,449 | 918 | |||||||||||
Selling and marketing | 4,107 | - | 4,107 | 3,416 | ||||||||||||
Loss from operations | (10,386 | ) | 2,193 | (8,193 | ) | (7,512 | ) | |||||||||
Interest income | 1,093 | - | 1,093 | 1,412 | ||||||||||||
Interest expense | - | - | - | (50 | ) | |||||||||||
Gain (loss) on disposal of assets | 12 | - | 12 | - | ||||||||||||
Other loss | 84 | - | 84 | (1 | ) | |||||||||||
Impairment expense | - | - | - | - | ||||||||||||
Foreign exchange loss | (129 | ) | - | (129 | ) | (26 | ) | |||||||||
Loss before income taxes | (9,326 | ) | 2,193 | (7,133 | ) | (6,177 | ) | |||||||||
Income tax expense (benefit) | (166 | ) | - | (166 | ) | 208 | ||||||||||
Net loss | (9,160 | ) | 2,193 | (6,967 | ) | (6,385 | ) | |||||||||
Unrealized gains, change in fair value of available-for-sale securities, net of tax | (11 | ) | - | (11 | ) | 283 | ||||||||||
Change in foreign currency translation | (52 | ) | - | (52 | ) | 3 | ||||||||||
Net loss and comprehensive loss | $ | (9,223 | ) | $ | 2,193 | $ | (7,030 | ) | $ | (6,099 | ) | |||||
Adjustments (Non-Cash) | ||||||||||||||||
Amortization | $ | 1,597 | $ | - | $ | 1,597 | $ | 1,199 | ||||||||
Depreciation | 334 | - | 334 | 164 | ||||||||||||
Stock Compensation | 1,101 | - | 1,101 | 1,765 | ||||||||||||
Subtotal | $ | (6,191 | ) | $ | 2,193 | $ | (3,998 | ) | $ | (2,971 | ) | |||||
Interest | $ | (1,093 | ) | $ | - | $ | (1,093 | ) | $ | (1,362 | ) | |||||
Taxes | (166 | ) | - | (166 | ) | 208 | ||||||||||
Non-GAAP Adjusted EBITDA** | $ | (7,450 | ) | $ | 2,193 | $ | (5,257 | ) | $ | (4,125 | ) | |||||
SOURCE: Zomedica Corp.
View the original press release on accesswire.com
FAQ
What was Zomedica's revenue for the first quarter of 2024?
What was the company's gross margin for the first quarter of 2024?
Who is Zomedica's CEO?
What was Zomedica's liquidity as of March 31, 2024?
What was the net loss for Zomedica in the first quarter of 2024?
