On November 13, 2023, Zomedica Corp (ZOM, Financial) released its 8-K filing, announcing a record-breaking third quarter for 2023. The veterinary health company, which specializes in point-of-care diagnostics and therapeutic products for companion animals, has shown a remarkable increase in revenue and gross margin, alongside strategic moves that promise sustained growth.
Financial Performance Highlights
Zomedica Corp (ZOM, Financial) has achieved a significant milestone with its highest revenue quarter in company history, marking a 31% increase to $6.3 million compared to the same period in 2022. This growth is attributed to the success of its Therapeutic Devices and Diagnostic segments, with notable revenue jumps in PulseVet, Assisi, TRUFORMA, TRUVIEWTM, and VetGuardian product sales.
Consumable revenues saw a rise of approximately 29% to $4.5 million, while capital revenues increased by roughly 38% to $1.8 million. The company also reported a strong gross margin of 69%, a sequential increase from 67% in the second quarter of 2023. Zomedica ended the quarter with a robust liquidity position, holding $118.0 million in cash, cash equivalents, and available-for-sale securities.
Strategic Growth and Operational Efficiency
Zomedica's CEO, Larry Heaton, expressed confidence in the company's trajectory, citing the record revenues as a sign of momentum that the company intends to build upon.
We look forward to building on this momentum as we leverage our new capabilities and continue introducing new product platforms into the market,"Heaton commented. The company's strategic acquisitions, such as Structured Monitoring Products and Qorvo Biotechnologies, are expected to bolster gross margins and drive adoption through in-house manufacturing and an expanded sales force.
Operating expenses saw a marginal increase of 2% to $10.3 million, reflecting the company's efforts to achieve profitability. Research and development expenses decreased by 25%, while selling and marketing expenses dropped by 11%, showcasing the company's operational efficiencies. General and administrative expenses rose by 17%, primarily due to increased headcount and infrastructure improvements.
The net loss for the quarter was significantly reduced to $0.3 million, or $0.001 per share, a marked improvement from the net loss of $5.8 million, or $0.005 per share, in the same quarter of the previous year. The non-GAAP EBITDA loss was also reduced to $0.3 million, compared to a loss of $3.0 million in Q3 2022.
Looking Forward
Zomedica anticipates revenue growth to continue, driven by synergies from recent acquisitions, increased sales and marketing efforts, and full sales territory deployment. The company also expects sales to reach historical highs in the fourth quarter. With the launch of the TRUVIEW digital microscopy system and the acquisition of Qorvo Biotechnologies, Zomedica is well-positioned to capitalize on new product categories and market opportunities.
The company has also addressed its NYSE American listing compliance, stating its intention to cure the share price deficiency and return to compliance through measures that serve the best interests of the company and its shareholders.
For more detailed financial information and future updates, investors and interested parties are encouraged to visit Zomedica's website and attend the upcoming conference call to discuss the operational and financial highlights for Q3 2023.
Zomedica Corp (ZOM, Financial) continues to demonstrate its commitment to innovation and growth in the veterinary health sector, with strategic initiatives that are expected to yield long-term benefits for the company and its stakeholders.
Explore the complete 8-K earnings release (here) from Zomedica Corp for further details.
