Zomedica Announces Second Quarter 2022 Financial Results of $4.2 Million of Revenue; 71% Gross Margin & $186.8 Million in Cash; Revenue up 51% from 2021 Combined Revenues
Zomedica Corp. (NYSE American: ZOM) reported second quarter 2022 financial results with revenue reaching $4.2 million, a significant increase of 51% compared to the same period last year. This surge was largely attributed to the acquisition of PulseVet which contributed $4.2 million in revenue. Gross margin stood at 71%. Despite the revenue growth, Zomedica reported a net loss of $5.3 million, increasing losses by 14%. The company ended the quarter with $186.8 million in cash and equivalents.
- Revenue of $4.2 million for Q2 2022, up 51% year-over-year.
- Gross margin at 71%.
- PulseVet revenue increased by 48% during Q2.
- Significant growth in TRUFORMA product revenue, achieving a 486% increase.
- Successful acquisition strategy with multiple purchases enhancing product portfolio.
- Net loss of $5.3 million in Q2, a 14% increase from last year.
- Cash and cash equivalents decreased to $186.8 million from $276.2 million year-over-year.
- Selling, general, and administrative expenses rose by 71% to $8.6 million.
ANN ARBOR, MI / ACCESSWIRE / August 15, 2022 / Zomedica Corp. (NYSE American:ZOM) ("Zomedica" or "Company, a veterinary health company offering point-of-care diagnostics and therapeutic products for companion animals, reported consolidated financial results for the three and six month periods ended June 30, 2022. Amounts are presented under accounting principles generally accepted in the United States of America ("U.S. GAAP").
Larry Heaton, Zomedica's Chief Executive Officer, commented: "The second quarter of 2022 was an exciting one for Zomedica as we both grew revenue organically and also executed on our acquisition strategy. We were pleased with our revenue growth to
"Sales of PulseVet products continued to grow during the most recent quarter, reflecting a
"During the second quarter we also continued to build the installed base of our TRUFORMA® diagnostic platform through our ‘Customer Appreciation Program', under which we provide veterinarians with an instrument at no cost to them in exchange for a commitment to utilize our assays. We are preparing to launch the Free T4 assay in the second half of 2022, completing our thyroid disease panel, and we continue to work with our development partner to produce assays for non-infectious GI disease for launch in 2023. To drive customer education and interest, our marketing team continues to sponsor presentations by luminaries in the field introducing new assays at veterinarian conferences throughout 2022.
"We're very pleased that we were able to bring to fruition several of our M&A initiatives. During the second quarter we closed on our
"Following the quarter, we closed on the purchase of the assets of Revo2's imaging products and Assisi Animal Health's Assisi LOOP® and Calmer Canine product lines. These acquisitions add to the Zomedica portfolio of products that improve the quality of care of the animals being treated and the satisfaction of their owners in addition to significantly improving the workflow, cashflow and profitability of veterinarian practices.
"The Revo2 MicroView® is the first and only digital microscopy platform that provides fully automated slide preparation, designed to dramatically improve veterinarian practice workflow as well as to reduce the number of unreadable images due to faulty slide preparation. The combined Revo2/Zomedica team is further enhancing the product and integrating it with the myZomedica portal with a plan to launch in the first half of 2023.
"The Assisi LOOP® and Calmer Canine products previously sold by Assisi Animal Health are now offered by Zomedica through various channels, including directly to veterinarians through animal health distributors, through Zomedica's websites (https://assisianimalhealth.com), and online retailers such as Amazon.com and Walmart.com.
"As we grow revenue from our existing products and integrate the recent acquisitions, we also continue to evaluate strategic business development and M&A options in the large and growing animal health sector to identify potential new opportunities."
Second Quarter 2022 Financial Highlights
- Total revenue for the second quarter 2022 was
$4.2 million , compared to$16,000 in the second quarter of 2021. Gross margin was71% . - Total revenues of
$4.2 million were up51% over the combined revenues of Zomedica and PulseVet as a standalone company in the second quarter of 2021 of$2.8 million . - TRUFORMA® product revenue was
$92,000 in the second quarter of 2022, an increase of486% over second quarter 2021 revenue of$16,000. - PulseVet® revenue was
$4.2 million in the second quarter 2022, an increase of48% over its second quarter 2021 revenue of$2.8 million as a standalone company. - PulseVet unit sales to Small Animal Veterinarians totaled 22, a twenty-fold increase over its second quarter 2021 Small Animal Veterinarian sales as a standalone company, of 1 unit.
- Zomedica ended the quarter with cash and cash equivalents of
$186.8 million , reflecting use of$5.5 million of cash during the quarter, including its purchase of a$1 million convertible note from Structured Medical Products, makers of the VetGuardian product.
Summary Second Quarter 2022 Results
Zomedica reported a net loss for the three months ended June 30, 2022, of
Zomedica reported a net loss for the six months ended June 30, 2022, of $
Revenue for the three months ended June 30, 2022, was
The increase was primarily due to the inclusion of our PulseVet platform which had revenues of
Revenue for the six months ended June 30, 2022, was
We launched our TRUFORMA platform in March 2021 and acquired PulseVet in October 2021. In general, we expect revenue to increase in subsequent periods as we increase our sales and marketing of the PulseVet platform and as additional assays are added to our TRUFORMA platform.
Cost of revenue for the three months ended June 30, 2022, was
Cost of revenue for the six months ended June 30, 2022, was
We anticipate that costs of revenue will increase in 2022 in accordance with the increased revenue as described above.
Research and development expense for the three months ended June 30, 2022, was
Research and development expense for the six months ended June 30, 2022, was
Selling, general, and administrative expense for the three months ended June 30, 2022, was
Selling, general, and administrative expense for the six months ended June 30, 2022, was
Liquidity and Outstanding Share Capital
Zomedica had cash and cash equivalents of
As of June 30, 2022, Zomedica had shareholders' equity of
Net cash used in operating activities for the six months ended June 30, 2022, was
Net cash used in investing activities for the six months ended June 30, 2022, was
Net cash provided by financing activities for the six months ended June 30, 2022, was
As of June 30, 2022, Zomedica had an unlimited number of authorized common shares with 979,899,668 common shares issued and outstanding. As of August 15, 2022, Zomedica had 979,949,668 common shares issued and outstanding.
For complete financial results, please see Zomedica's filings on EDGAR and SEDAR or visit the Zomedica website at www.zomedica.com.
For additional information regarding our products, please click on the Products tab at the top of the home page on the Zomedica website (www.zomedica.com).
About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American:ZOM) is a veterinary health company creating products for dogs and cats by focusing on the unmet needs of clinical veterinarians. Zomedica's product portfolio will include innovative diagnostics and medical devices that emphasize patient health and practice health. It is Zomedica's mission 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.
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Reader Advisory
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 American 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: 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.sedar.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:
PCG Advisory
Kirin Smith, President
ksmith@pcgadvisory.com
+1 646.823.8656
SOURCE: Zomedica Corp.
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