Zomedica (US:ZOM)2025-08-07 18:30Summary of Zomedica (ZOM) Conference Call - August 07, 2025 Company Overview - Company: Zomedica Corporation - Ticker Symbol: ZOMDF (OTCQB Venture Market) - Industry: Animal Health and Veterinary Services Key Points and Arguments 1. Market Opportunity: The total addressable market for Zomedica exceeds $2.7 billion annually, with the veterinary services segment in the U.S. valued at over $62 billion and growing [4][6]. 2. Revenue Growth: Zomedica has reported an increase in year-over-year revenues for 18 consecutive quarters, with revenues rising from $1 million in 2020 to $27 million in the last year [27][28]. 3. Product Portfolio: The company has developed six proprietary technology platforms aimed at improving veterinary care and practice profitability [4][5]. 4. Capital and Liquidity: Zomedica has $59 million in capital to support growth towards profitability [5][28]. 5. High Margins: The company maintains gross margins between 67% to 70%, with a focus on manufacturing its products to control costs [28][34]. 6. Recurring Revenue Model: A significant portion of revenue comes from consumable products, with nearly 70% of revenue from the PulseVet system derived from reorders of handpieces [13][14]. 7. Innovative Technologies: Key products include: - PulseVet: A shockwave therapy system generating significant revenue [10][11]. - Assisi Loop: A targeted pulse electromagnetic field therapy device, contributing about one-third of revenue from reorders [17][18]. - Vetagel Hemostatic Gel: A fast-acting gel for stopping bleeding, licensed for distribution in the U.S. [19][20]. - TrueView Microscope: A digital microscopy platform with AI capabilities, enhancing diagnostic capabilities for veterinarians [21][50]. - TruForm Platform: A diagnostic device utilizing bulk acoustic wave sensors, showing over 75% growth this year [22][23]. - VetGuardian: A pet monitoring device that provides vital signs without attachments, enhancing post-surgery care [24][25]. 8. International Expansion: Approximately 20% of revenue comes from international markets, with a 13% growth in international sales last quarter [30]. 9. Future Growth Strategy: Focus on leveraging commercial infrastructure, expanding product portfolio, and pursuing M&A opportunities while maintaining high margins [29][33]. 10. Market Positioning: The company believes it is undervalued, with a negative enterprise value despite significant revenue growth and potential [46][47]. Additional Important Insights - COVID-19 Impact: The pandemic led to an increase of 23 million pets in households, expanding the market for veterinary services [7]. - Veterinary Challenges: Veterinarians face staffing shortages and revenue loss to online competitors, which Zomedica aims to address with its products [9]. - Economic Model: The economic model for veterinarians using Zomedica's products is favorable, allowing them to achieve profitability quickly [15][16]. - R&D and M&A Balance: The company is shifting focus from R&D to scaling commercial adoption while still considering M&A opportunities for growth [39][40]. - Future Product Launches: New product launches are expected to enhance revenue and market presence, with AI integration in diagnostic tools [50][51]. This summary encapsulates the key insights from the Zomedica conference call, highlighting the company's market position, growth strategies, and innovative product offerings in the veterinary sector.