Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Zomedica Corp (ZOMDF, Financial) reported a record fourth quarter revenue of $7.9 million, marking the 15th consecutive quarter of revenue growth.
- The company has over $70 million in liquidity, indicating a strong financial position with no debt.
- Zomedica Corp (ZOMDF) achieved significant international expansion in 2024, including regulatory approvals and strategic partnerships in Europe and the Middle East.
- The Diagnostics segment saw a 109% year-over-year increase, driven by the adoption of TRUFORMA and VetGuardian products.
- The company launched several new products and assays in 2024, including VETIGEL, which is expected to drive revenue growth in 2025.
Negative Points
- Zomedica Corp (ZOMDF) was delisted from the NYSE American Exchange due to non-compliance with minimum share price requirements.
- The share price has been under significant pressure, impacting investor sentiment despite strong operational performance.
- The Therapeutic Devices segment, including PulseVet, experienced only 4% growth, indicating potential challenges in capital equipment sales.
- The company reported a net loss of $47 million for the year, with a non-GAAP EBITDA loss of $40.7 million.
- There is uncertainty regarding the timeline for achieving profitability and returning to a major exchange listing.
Q & A Highlights
Q: Can you provide details on the product rollout for 2025, particularly regarding the assays introduced in 2024?
A: We plan to launch another 5 to 6 assays for TRUFORMA this year, targeting canine, feline, and equine markets. Additionally, we are adapting VetGuardian for equine use and have launched EquiLOOP for horses. VETIGEL was also launched this year, and a new version of the LOOP Lounge will be released soon.
Q: How is the sales force restructuring progressing, and what changes have been made?
A: Our overall headcount is flat year-over-year, but we've increased the commercial organization and sales headcount. We now have capital equipment specialists in each region to assist with sales. We've also added resources for equine vets and hired a Head of Corporate Accounts to target large veterinary groups.
Q: What is the current mix of domestic versus international revenue, and do you expect this to change?
A: Currently, about 80% of our revenue is from the U.S., with 20% from international markets. While international growth was strong, the base is smaller, so the percentage might not shift significantly unless international growth outpaces domestic growth.
Q: Can you provide guidance on reaching breakeven in 2025?
A: Reaching a $50 million run rate for breakeven this year might be aggressive. While we aim for strong growth, doubling last year's revenue is a significant challenge.
Q: How is the company addressing the delisting from the NYSE American Exchange?
A: We are focused on increasing the share price through strong performance in revenues, margins, and operating expenses. We are exploring all strategic options, including a potential share buyback, to meet the requirements for relisting on a major exchange.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
