Bioharvest Sciences, Inc. ((BHST)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Bioharvest Sciences, Inc. recently held an earnings call that revealed a strong performance marked by significant revenue growth and improved gross margins. Despite challenges such as increased operating expenses and a continued net loss, the company’s strategic growth initiatives and financial improvements provided a positive outlook.
Strong Revenue Growth
The company reported a remarkable 47% year-over-year increase in revenue, reaching $7.9 million and surpassing the guidance of $7.8 million. This growth was largely driven by balanced expansion in the VINIA business, showcasing the company’s ability to exceed expectations.
Increase in Gross Margin
Bioharvest Sciences saw an improvement in gross margins, which rose by 227 basis points to 58.5% from the previous year’s 56.2%. This enhancement was attributed to the benefits of scale and cost efficiencies, reflecting the company’s effective operational strategies.
Growth in Active Subscribers
The company achieved a milestone with total active subscribers exceeding 50,000. Notably, recurring subscribers accounted for 90% of revenue on the vinia.com platform, indicating a strong and loyal customer base.
Successful Product Expansion
Bioharvest successfully launched the VINIA SuperFood Tea lineup and VINIA SuperFood Coffee, with plans to introduce new SKUs and expand into the hydration beverage category. This diversification of products is expected to drive further growth.
Progress in CDMO Division
The company completed Stage 1 of development for a major CDMO program with a NASDAQ-listed pharmaceutical partner. Additionally, the partnership with Tate & Lyle for next-generation sweeteners highlights Bioharvest’s progress in this division.
Financial Resilience
Net losses decreased significantly to $2.3 million from $6.6 million in the same quarter last year, demonstrating Bioharvest’s financial resilience and improved cost management.
Increased Operating Expenses
Operating expenses rose to $6.3 million from $4.4 million, driven by higher marketing spend and CDMO service division expenses. This increase reflects the company’s investment in growth and expansion.
Continued Net Loss
The company reported a net loss of $2.3 million or $0.13 per share, though this was an improvement from the previous year’s loss, indicating a positive trend towards financial recovery.
Limited Cash Reserves
Bioharvest’s cash and cash equivalents stood at $3.4 million, with $3.9 million raised in debt financing during the quarter. This highlights the company’s efforts to maintain liquidity while pursuing growth.
Forward-Looking Guidance
Looking ahead, Bioharvest Sciences aims to achieve adjusted EBITDA breakeven at $11-12 million in quarterly revenue, with a long-term goal of a 20% adjusted EBITDA margin for their direct-to-consumer division. The company plans to continue expanding its VINIA product line and launch new offerings, positioning itself for sustained growth.
In conclusion, Bioharvest Sciences, Inc. showcased a strong performance in its latest earnings call, with significant revenue growth, improved margins, and successful product expansion. Despite challenges with operating expenses and net loss, the company’s strategic initiatives and financial resilience paint a promising picture for the future.