TRxADE HEALTH(US:MEDS)2023-05-16 02:30Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2023 decreased by 31% to $2.2 million compared to $3.2 million in Q1 2022, primarily due to a 70% decrease in TRxADE Prime revenue [24][26] - TRxADE Platform revenue increased by 4% year-over-year, while Community Specialty Pharmacy revenue rose by 16% [24] - Gross margin improved by 70% for the same three-month periods, with TRxADE Prime reporting a gross margin of 12% in Q1 2023 compared to 1% in Q1 2022 [25] - Net loss for Q1 2023 was $678,000 or $0.07 per share, an improvement from a net loss of $960,000 or $0.12 per share in Q1 2022 [26] - Cash increased to $1.2 million as of March 31, 2023, from $1.1 million at the end of 2022, driven by an $850,000 accounts receivable advance [27] Business Line Data and Key Metrics Changes - TRxADE Prime revenue saw a significant decline, while the TRxADE Platform and Community Specialty Pharmacy revenues experienced growth [24] - The gross margin for Community Specialty Pharmacy improved from a negative 30.7% in 2022 to 13.1% in 2023 [25] Market Data and Key Metrics Changes - The company has over 14,500 registered members on its platform, with approximately 1,100 new members added in Q1 2023 compared to the same period in 2022 [37] - There was a 7% increase in the volume of sales processed across the TRxADE platform year-over-year [38] Company Strategy and Development Direction - The company is focusing on innovation and partnerships to enhance its B2B strategy while diversifying its revenue base [28] - Plans to sell subsidiary companies, Community Specialty Pharmacy and Alliance Pharma Solutions, to concentrate on core B2B operations [39] - The strategy includes improving TRxADE Prime revenues through better catalog and pricing, while also negotiating better contracts with suppliers [44][62] Management's Comments on Operating Environment and Future Outlook - Management noted the importance of providing independent pharmacies with transparency and competitive pricing to enhance their purchasing power [61] - The company aims to reduce operational expenses and improve gross margins moving forward, with a focus on technology and analytics to support pharmacies [66] Other Important Information - The company is working towards completing the sale of its subsidiary companies by June 30, 2023, which is expected to alleviate some financial burdens [39][58] - Operating expenses in Q1 2023 were $1.9 million, down from $2.3 million in Q1 2022, reflecting reductions in various costs [52] Q&A Session Summary Question: What is the current state of independent pharmacies and their needs? - Management emphasized the need for transparency and competitive pricing from suppliers to support independent pharmacies [49] Question: What is the strategy regarding TRxADE Prime and its revenue? - Management indicated that the decline in TRxADE Prime revenue is strategic, focusing on improving the catalog and pricing to enhance margins [43][45] Question: Can you elaborate on the sale of subsidiary companies and its impact? - The sale is part of a strategy to focus on core B2B operations, with an expected reduction in financial burdens from these consumer-focused businesses [58] Question: How is the company addressing competition from larger wholesalers? - Management stated that the goal is to provide independent pharmacies with better visibility and options to compete with larger wholesalers [61] Question: What are the expectations for future transaction volumes on the platform? - Management expressed optimism about increasing transaction volumes due to the growing number of registered members and improved service offerings [74]