Zomedica Pharma ((ZOMDF)) has held its Q4 earnings call. Read on for the main highlights of the call.
Zomedica’s recent earnings call painted a mixed picture, with strong revenue growth and successful international expansion being tempered by significant challenges. The company reported a robust performance in its diagnostics segment and highlighted promising product innovations. However, these positives were overshadowed by operational hurdles, including a delisting from the NYSE and an increased net loss, which have raised concerns among investors.
Record Quarterly Revenue
Zomedica reported a record quarterly revenue of $7.9 million for Q4 2024, marking an 8% growth compared to the same quarter last year. This achievement underscores the company’s ability to generate increased sales and reflects positively on its financial health.
Significant Growth in Diagnostics Segment
The Diagnostics segment was a standout performer, experiencing a 109% year-over-year increase. This growth was driven by the expanding adoption of TRUFORMA assays and contributions from the TRUVIEW and VetGuardian product lines, highlighting the segment’s critical role in Zomedica’s overall success.
International Expansion
Zomedica made significant strides in international markets by obtaining CE marking for several products and forming strategic partnerships with leading distributors across Europe, the Middle East, and other regions. These efforts are expected to open new revenue streams and enhance the company’s global presence.
Launch of New Products
The company launched multiple new products, including new TRUFORMA assays, the Vetigel Hemostatic Gel, and enhancements to the TRUVIEW platform. These innovations are poised to strengthen Zomedica’s product portfolio and drive future growth.
Strong Liquidity Position
With over $71 million in liquidity and no debt, Zomedica’s financial position remains strong. This liquidity provides a solid foundation for the company to invest in growth opportunities and navigate market challenges.
NYSE Delisting
Zomedica faced a setback with its delisting from the NYSE American Exchange due to not meeting the minimum share price requirement. The company has transitioned to the OTCQB Market, which may impact investor perception and market visibility.
Decline in Share Price
The company’s share price has been under pressure, falling below $0.20. This decline poses challenges in terms of investor confidence and market capitalization, which the company will need to address moving forward.
Operating Expenses
Operating expenses increased to $54.5 million for the year, up from $48.9 million in 2023. This 11% rise reflects the company’s investment in growth and expansion efforts.
Net Loss
Zomedica reported a net loss of $47 million for the year, a significant increase from the $34.5 million net loss in the previous year. This growing loss highlights the financial challenges the company faces despite its revenue growth.
Forward-Looking Guidance
CEO Larry Heaton provided forward-looking guidance during the earnings call, emphasizing the company’s record revenues and strong performance in the therapeutic devices and diagnostics segments. He highlighted the success of products like TRUFORMA and VetGuardian, which saw substantial year-over-year growth. Despite the challenges posed by the NYSE delisting, Heaton reaffirmed Zomedica’s commitment to driving growth and achieving profitability, supported by a healthy gross margin and strong liquidity.
In summary, Zomedica’s earnings call revealed a company experiencing robust revenue growth and successful international expansion, yet grappling with significant challenges such as increased net loss and market pressures. While the company’s strong liquidity and innovative product launches are promising, the delisting from the NYSE and declining share price present hurdles that need to be addressed. Investors will be keenly watching how Zomedica navigates these challenges while capitalizing on its growth opportunities.