Zomedica Corp (ZOMDF, Financial) released its 8-K filing on March 14, 2025, detailing its financial results for the fourth quarter and full year of 2024. The company, a veterinary health firm specializing in diagnostic and therapeutic products for companion animals, reported a record annual revenue of $27.3 million, slightly below the estimated $27.5 million. The fourth quarter revenue stood at $7.9 million, falling short of the $8.10 million analyst estimate.
Company Overview
Zomedica Corp is dedicated to addressing the unmet needs of clinical veterinarians by developing products for companion animals, including dogs, cats, and horses. The company's portfolio includes the TRUFORMA platform, which detects thyroid and adrenal disorders in pets, and it operates through two segments: Diagnostic and Therapeutic Devices. The majority of its revenue is derived from the therapeutics segment.
Performance and Challenges
The company achieved a 70% gross margin for both the fourth quarter and the full year, reflecting strong operational efficiency. However, Zomedica reported a net loss of $7.2 million for the fourth quarter, a significant improvement from the $22.4 million loss in the same period of 2023. The annual net loss was $47.0 million, compared to $34.5 million in 2023. This performance underscores the company's ongoing challenge of achieving profitability despite revenue growth.
Financial Achievements
Zomedica's Diagnostics segment experienced a remarkable 109% year-over-year growth in the fourth quarter, driven by the adoption of the TRUFORMA and VETGuardian product lines. This growth is crucial for the company as it seeks to expand its market presence and capitalize on the increasing demand for advanced veterinary diagnostic solutions.
Key Financial Metrics
For the full year 2024, Zomedica's revenue increased by 8% to $27.3 million, primarily due to organic growth in its PulseVet, TRUFORMA, and VETGuardian product lines. The cost of revenue rose by 4.2% to $8.2 million, while operating expenses increased by 16% to $70.1 million, reflecting the integration of Qorvo Biotechnologies' expenses. The company's liquidity remains strong, with $71.4 million in cash, cash equivalents, and available-for-sale securities as of December 31, 2024.
Commentary and Analysis
We wrapped up a strong 2024 with solid performance in the fourth quarter as we posted record revenue, year over year, for the 15th straight quarter," said Larry Heaton, President and Chief Executive Officer of Zomedica.
The company's strategic focus on expanding its product portfolio and international market presence positions it well for future growth. However, the ongoing net losses highlight the need for continued operational improvements and cost management to achieve profitability.
Conclusion
Zomedica Corp's financial results for 2024 demonstrate robust revenue growth and improved gross margins, driven by the success of its Diagnostics segment. While the company faces challenges in achieving profitability, its strong liquidity and strategic initiatives provide a solid foundation for future expansion in the veterinary health industry. For more detailed financial results, visit Zomedica's filings on EDGAR and SEDAR+ or the company's website.
Explore the complete 8-K earnings release (here) from Zomedica Corp for further details.
