Sanara MedTech Inc is a medical technology company focused on developing and commercializing transformative technologies to improve clinical outcomes and reduce healthcare expenditures in the chronic and surgical wound and skincare markets. Its portfolio of products and services allows it to deliver comprehensive wound and skincare solutions for patients in all care settings, including acute and post-acute. Its surgical wound care products are CellerateRX Surgical Activated Collagen. Its chronic wound care products are HYCOL Hydrolyzed Collagen, BIAKOS Skin and Wound Cleanser, and BIAKOS Skin and Wound Gel.
Performance Overview
Sanara MedTech Inc (SMTI, Financial) reported a net revenue of $20.2 million for the quarter ended June 30, 2024, surpassing the analyst estimate of $19.10 million. This represents a 28% increase from the $15.8 million reported in the same quarter of the previous year. The company attributed this growth to increased sales of its soft tissue repair products and expanded market penetration.
Challenges and Financial Metrics
Despite the revenue growth, Sanara MedTech Inc (SMTI, Financial) reported a net loss of $3.5 million for Q2 2024, compared to a net loss of $1.9 million in Q2 2023. The increased loss was primarily due to higher selling, general, and administrative (SG&A) expenses, which rose by $3.4 million, executive separation costs of $0.9 million, acquisition costs of $0.4 million, and higher amortization expenses of $0.3 million. These costs were partially offset by a higher gross profit of $4.6 million and lower research and development (R&D) expenses of $0.2 million.
Segment Performance
Sanara Surgical reported a net loss of $2.2 million for Q2 2024, compared to a net income of $0.1 million in Q2 2023. Tissue Health Plus (THP) produced a net loss of $1.3 million for Q2 2024, compared to a net loss of $2.0 million in Q2 2023. Segment EBITDA for Sanara Surgical was $1.4 million, up from $1.1 million in Q2 2023, while THP's Segment EBITDA improved to ($0.8) million from ($1.4) million in the same period last year.
Balance Sheet and Cash Flow
| Metric | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash | $6,150,375 | $5,147,216 |
| Accounts Receivable | $10,495,742 | $8,474,965 |
| Total Assets | $73,383,605 | $73,871,149 |
| Total Liabilities | $31,981,610 | $29,283,132 |
| Total Shareholders' Equity | $41,401,995 | $44,588,017 |
Adjusted EBITDA
Sanara MedTech Inc (SMTI, Financial) reported an Adjusted EBITDA of $0.6 million for Q2 2024, compared to ($0.3) million in Q2 2023. This improvement reflects the company's efforts to manage its operational costs while driving revenue growth.
Conclusion
Sanara MedTech Inc (SMTI, Financial) continues to show strong revenue growth, driven by its expanding product portfolio and market penetration. However, the company faces challenges in managing its operational costs, which have led to increased net losses. Investors will be keen to see how the company addresses these challenges in the coming quarters.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Sanara MedTech Inc for further details.
