Biotricity (US:BTCY)2023-08-16 01:13Financial Data and Key Metrics Changes - Revenue for Q1 2024 increased by 46.9% year-over-year to $3 million [7][57] - Gross profit rose to $1.9 million, up 56% from $1.2 million a year ago, with a gross profit margin of 63.5%, compared to 59.6% in the prior year [7][23][57] - Net loss decreased by 33% year-over-year to $3.6 million, or $0.069 per share, from a net loss of $5 million, or $0.098 per share [3][8] Business Line Data and Key Metrics Changes - Technology fees, which are recurring subscription service fees, rose by 47% to $2.77 million, comprising 92% of total revenue [36][37] - Device sales accounted for 8.3% of total revenue, reported at $252,000 [58] Market Data and Key Metrics Changes - The healthcare AI market is projected to grow to $208.2 billion by 2030, indicating a significant opportunity for the company [5] - The company has expanded its sales reach to over 35 states in the U.S., contributing to revenue growth [57] Company Strategy and Development Direction - The company aims to increase sales of remote cardiac monitoring devices, ramp up subscription-based services, and accelerate recurring revenue to achieve profitability [10][21] - Focus on enhancing AI technology to improve patient management and disease profiling, with ongoing R&D investments in automation and product enhancement [5][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow and highlighted the importance of maintaining financial discipline while driving margin and revenue growth [18][19] - The company is optimistic about the future, with expectations of continued improvement in gross margins as technology fees become a larger portion of revenue [36][48] Other Important Information - The company has monitored over 2 billion heartbeats for atrial fibrillation, resulting in significant cost savings for healthcare systems [4][20] - Management emphasized the importance of customer retention, with a retention rate of approximately 98% [37] Q&A Session Summary Question: Insights on device sales and service fee mix - Management indicated that Bioflux still dominates revenue, but Biotres is expected to grow as it becomes more established in the market [26][41] Question: R&D expenditure focus - The company is focusing R&D on automation and enhancing existing products to improve margins and reduce costs [42][43] Question: Future state coverage targets - Management aims for 50-state coverage and is building out its sales force to optimize distribution relationships [29][46] Question: Sustainability of reduced operating expenses - Management believes the current expense level is sustainable due to optimized operations and a focus on sales and account management [56] Question: Gross margin sustainability - Management anticipates that as revenue becomes predominantly SaaS-related, gross margins will stabilize around the SaaS rate [48][49]