Biotricity (US:BTCY)2022-08-16 01:24Financial Data and Key Metrics Changes - Company reported revenue of $2.1 million for Q1 2023, with a year-over-year increase in technology fees of $425,000, representing a 30% increase [12][6] - Gross profit for the quarter was $1.2 million, maintaining a gross profit margin of 60% [12][6] - The company incurred a net loss of $5 million, translating to a net loss per share of $0.098 [12] Business Line Data and Key Metrics Changes - The majority of revenue continues to come from Bioflux, a mobile cardiac telemetry device, with technology as a service revenue increasing to $1.9 million [6][5] - Biotres, a newly launched wireless cardiac monitoring device, is designed for low-risk patients, expanding the addressable market significantly [9][10] - The introduction of Bioheart, a consumer-accessible cardiac monitor, adds to the product portfolio [9][10] Market Data and Key Metrics Changes - The total addressable market (TAM) has expanded from $1 billion to approximately $6 billion with the introduction of new products [10] - The company is targeting integrated delivery networks (IDNs) and hospital systems, which represent a significant market opportunity [22][21] Company Strategy and Development Direction - The company aims to position itself as a comprehensive solution for cardiac diagnostics and disease management, focusing on a recurring revenue model [5][11] - Plans to introduce Biocare, a virtual clinic and disease management platform, are underway, targeting the $35 billion monthly care market [10][11] - The strategy includes building a complete ecosystem to address gaps in cardiac care, enhancing patient monitoring and management [11][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the business, emphasizing the importance of innovation and commercialization [14][16] - The company anticipates improvements in gross margins as sales volumes expand and costs decrease as a percentage of revenue [12][14] - Management highlighted the long-term strategy of building relationships with IDNs, acknowledging the lengthy sales cycles involved [22][21] Other Important Information - The company ended the quarter with $7.2 million in cash, indicating a solid financial position to support growth initiatives [14] - Operating expenses increased to $5.7 million, primarily due to investments in building a professional salesforce [13] Q&A Session Summary Question: Utilization opportunity with 2,000 physicians - Management noted that while there is a broad network, the depth of utilization is still being assessed, particularly with new products like Biotres [18][19] Question: Commentary on IDNs - Management discussed the long sales cycles associated with IDNs but emphasized the unique advantages of their products in hospital systems [21][22] Question: Gross margin outlook - Management expects gross margins to remain around 60% to mid-60% as the product mix evolves and economies of scale are realized [23] Question: Success in selling through to physicians - Management indicated that they control approximately 85% of the mobile cardiac telemetry business among their physician clients [25][24] Question: Sales team quotas and performance metrics - Management explained that sales representatives are benchmarked against internal performance metrics, with clear revenue targets [27][26] Question: Synergistic effects of Biotres and Bioflux - Management provided an example of how the introduction of Biotres has complemented existing products, enhancing economic justification for clinics [30][29]