Zomedica (US:ZOM)2025-05-15 20:12Management Commentary The CEO highlighted a record first quarter, marking the 17th consecutive quarter of year-over-year revenue growth, driven by strong consumable usage, increased international sales, and new product line introduction - Achieved record year-over-year revenue for the 17th consecutive quarter, delivering the strongest first quarter in company history2 - International sales increased by 32% compared to Q1 2024, driven by organic growth and new distributor partnerships4 - Gross margin improved to 68% in Q1 2025, compared to 66% in Q1 20244 - The company expanded its portfolio with the introduction of the new VETIGEL® product line to support future recurring sales revenue3 Financial Performance Zomedica's Q1 2025 revenue grew 4% year-over-year to $6.5 million, but a GAAP net loss of $63.8 million was recorded due to a significant non-cash impairment charge Revenue Analysis Total revenue for Q1 2025 increased by 4% to $6.5 million, led by a 13% rise in Consumables and an 8% increase in Therapeutics, despite a 25% decline in Diagnostics Q1 2025 Revenue Breakdown vs. Q1 2024 | Category | Revenue (Q1 2025) | YoY Change | Note | | :--- | :--- | :--- | :--- | | Total Revenue | $6.5 million | +4% | 17th straight quarter of YoY growth | | Consumables | $4.5 million | +13% | Driven by TRUFORMA and PulseVet reorders | | Capital | $2.0 million | -12% | Impacted by non-recurring large orders in Q1 2024 | | By Segment | | | | | Therapeutics | $5.9 million | +8% | PulseVet® and Assisi® products | | Diagnostics | $0.6 million | -25% | Due to non-repeating large VetGuardian orders in Q1 2024 | Profitability and Expenses Gross margin for Q1 2025 was strong at 68%, with total operating expenses of $69.0 million heavily influenced by a $55.8 million non-cash impairment charge - A non-cash impairment charge of $55.8 million was recorded, triggered by the decline in the Company's market capitalization11 Operating Expenses (Q1 2025 vs Q1 2024) | Expense Category | Q1 2025 | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | | Adjusted Operating Expenses* | $13.2 million | -9% | Lower G&A costs | | Research & Development | $1.9 million | +5% | Buildup of internal development capabilities | | Selling & Marketing | $5.0 million | +22% | Increased sales department headcount | | General & Administrative | $6.3 million | -27% | Non-recurrence of specialized professional fees | Net Loss and EBITDA The company reported a GAAP net loss of $63.8 million for Q1 2025, significantly higher than the prior year, primarily due to a $55.8 million impairment charge Profitability Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(63.8) million | $(9.2) million | | Non-GAAP EBITDA Loss | $(61.7) million | $(7.5) million | | Adjusted Non-GAAP EBITDA Loss | $(5.7) million | $(5.3) million | Liquidity and Outstanding Share Capital As of March 31, 2025, Zomedica maintained a solid liquidity position with $64.6 million in cash, cash equivalents, and available-for-sale securities, with approximately 980 million common shares outstanding - The company held $64.6 million in cash, cash equivalents, and available-for-sale securities as of March 31, 2025, compared to $71.4 million at the end of 202418 - As of March 31, 2025, there were 979,949,668 common shares issued and outstanding18 Conference Call Information Zomedica scheduled a conference call and webcast for 4:30 p.m. ET on May 15, 2025, to review its first-quarter 2025 financial and operational results, with a replay accessible until May 29, 2025 - A conference call to discuss Q1 2025 financial results was scheduled for Thursday, May 15, 2025, at 4:30 p.m. Eastern Time20 - A dial-in replay of the conference call will be available until May 29, 2025, using replay pin number 114815121 Non-GAAP Financial Measures This section defines the non-GAAP measures used by the company, such as Non-GAAP EBITDA and Adjusted Non-GAAP EBITDA, and provides a detailed reconciliation table - The company uses non-GAAP measures to evaluate operating performance; Adjusted Non-GAAP EBITDA excludes impairment charges and other non-recurring items from Non-GAAP EBITDA3031 Reconciliation of Net Loss to Adjusted Non-GAAP EBITDA Loss | Line Item | Three Months Ended March 31, 2025 (in thousands) | | :--- | :--- | | Net loss and comprehensive loss | $(63,765) | | Impairment expense | $55,833 | | Amortization expense | $1,692 | | Depreciation expense | $521 | | Stock-compensation expense | $618 | | Interest income | $(730) | | Proforma adjustments | $143 | | Adjusted Non-GAAP EBITDA loss | $(5,745) |