Financial Data and Key Metrics Changes - Revenue for Q1 2023 totaled approximately $348,000, a significant increase from approximately $163,000 in the prior year period, reflecting an 85% contribution from the Atlanta INVO Center [40] - Adjusted EBITDA loss improved to $1.7 million compared to an adjusted EBITDA loss of $2 million last year, indicating operational improvements [27] - Gross margin increased to 79% from 60% due to improved efficiencies at the Atlanta INVO Center [40] Business Line Data and Key Metrics Changes - The three existing INVO Centers generated approximately $647,000 in Q1 2023, representing a 108% increase year-over-year and a 46% sequential increase [35][40] - Approximately 85% of Q1 revenue came from consolidated service revenue from the Atlanta INVO Center, compared to $106,000 in the prior year period [40] Market Data and Key Metrics Changes - The company is focusing on expanding its presence in the fertility marketplace through acquisitions and the establishment of new INVO Centers, with a new center in Tampa expected to open in mid-summer 2023 [29][43] - The acquisition of the Wisconsin fertility Institute is expected to add approximately $5.5 million in trailing revenue and around $1.9 million in net income, enhancing overall operations [39] Company Strategy and Development Direction - The company is evolving from a medical device technology company to an integrated clinic company, focusing on offering treatment solutions within the growing fertility marketplace [29] - The acquisition strategy aims to synergistically introduce INVOcell into existing IVF clinics, enhancing commercial efforts and building scale [39] Management's Comments on Operating Environment and Future Outlook - Management noted that existing clinics are nearing breakeven and are expected to generate positive cash flows and profits soon, indicating a positive operational trend [35] - The company is optimistic about the continued growth in patient interactions and treatment volumes, which are expected to build throughout 2023 [14][40] Other Important Information - The company has approximately $2.2 million in cash and $1.1 million in debt as of March 31, 2023, with plans to file audited financial results for the Wisconsin clinic in the current quarter [27] - The company has added resources to its acquisition department to expedite future clinic acquisitions and streamline the process [22] Q&A Session Summary Question: What were the key drivers behind the 46% sequential increase in Q1 revenues? - Management indicated that the increase was due to building awareness in the markets and an increase in patient inquiries, leading to higher treatment volumes [14][15] Question: Can you provide some color on the strategies being implemented to promote the adoption of INVOcell outside of the operating clinics? - The strategy involves training clinics on the technology and addressing capacity issues, with a focus on increasing awareness and utilization of INVOcell [17] Question: How robust do you think the acquisition pipeline is and what is the expected timing for closing deals? - Management believes that doing a couple of acquisitions per year is manageable and that they are working to streamline the acquisition process to close deals more quickly [8][22]
INVO BioScience(INVO) - 2023 Q1 - Earnings Call Transcript