Biotricity, Inc. (BTCY) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights significant revenue growth, improved gross margins, and reduced operating expenses, indicating strong financial performance. Despite challenges in market expansion and interest rates, the company's strategic initiatives in AI and new market penetration are promising. The Q&A session confirms management's proactive approach to growth and profitability, with no unclear responses. The positive sentiment is reinforced by the company's path to profitability and successful cost management, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
Key Financial Performance
Revenue (Q4 FY 2024) $3.2 million, up 15.9% year-over-year. Growth attributed to strategic sales initiatives and transition to a flat-fee subscription model.
Revenue (FY 2024) $12.06 million, up 25% from $9.64 million in FY 2023. Growth driven by increased demand for FDA-cleared cardiac monitoring devices.
Gross Profit (Q4 FY 2024) $2.3 million, up 48% from $1.5 million in Q4 FY 2023. Increase due to expansion in recurring technology fee revenue and operational efficiencies.
Gross Margin (FY 2024) 69.3%, up from 56.5% in FY 2023. Improvement due to higher quality earnings and operational efficiencies.
Gross Margin (Q4 FY 2024) 71.5%, up from 56% in Q4 FY 2023. Increase attributed to expansion in recurring revenue and efficiencies from proprietary AI.
Operating Expenses (FY 2024) $17.2 million, down from $20.9 million in FY 2023. Decrease due to reduced SG&A and R&D expenses.
Operating Expenses (Q4 FY 2024) $5.3 million, compared to $5 million in Q4 FY 2023. Increase due to a one-time expense.
Net Loss (FY 2024) $14.9 million, improved from a net loss of $19.5 million in FY 2023. Improvement due to reduced operating expenses.
Net Loss (Q4 FY 2024) $4.4 million, down from $4.9 million in Q4 FY 2023. Decrease despite infrastructure growth and rising interest rates.
Adjusted EBITDA (FY 2024) Loss of $7.8 million, improved from a loss of $14.8 million in FY 2023. Improvement reflects progress towards breakeven.
Operating Highlights
New Product Launch: Launched the Biocore Pro, a next-generation cardiac monitoring device. Introduced HeartSecure, a direct-to-consumer heart health screening service targeting the $1.1 billion home heart health market.
Market Expansion: Health Canada approval for the Biocore device opens revenue growth opportunities in the $1.56 billion Canadian cardiology devices market. Strategic alliances with three top group purchasing organizations (GPOs) provide access to approximately 90% of U.S. hospitals. Launched a major cardiac monitoring pilot program with nine hospitals and ten clinics.
Operational Efficiency: Reduced operating expenses for the fiscal year to $17.2 million from $20.9 million in the prior year. Achieved a gross profit margin of 71.5% for Q4, up from 56% in the same quarter last year. Transitioned to a flat-fee subscription model, enhancing revenue predictability.
Strategic Shift: Focused sales strategy on longer sales cycles and larger accounts, including independent hospitals and GPO networks. Shifted sales compensation structure to reward new device sales, positively impacting future subscription tech fees.
Risk or Challenges
Regulatory Issues: The company is pursuing FDA clearance for its AI clinical model, which involves inherent risks related to regulatory approval processes.
Competitive Pressures: Biotricity faces competition in the healthcare technology sector, particularly in the cardiac monitoring space, which could impact market share and pricing.
Supply Chain Challenges: The company has expanded its partnerships with group purchasing organizations, which may mitigate supply chain risks but also introduces dependency on these partners.
Economic Factors: Rising variable interest rates have been noted as a concern affecting the company's financial performance and operational costs.
Market Adoption Risks: While there is strong demand for Biotricity's products, the success of new product launches and market penetration remains uncertain.
Operational Efficiency: The company has made strides in operational efficiency, but ongoing management of operating expenses is crucial to achieving profitability.
Guidance & Outlook
Strategic Partnerships: Expansion of Cardiac AI Cloud platform through partnerships with Amazon AWS and Google's TensorFlow, leveraging over 500 billion heartbeats of anonymized data.
Market Reach Expansion: Strategic alliances with three top group purchasing organizations (GPOs) providing access to approximately 90% of U.S. hospitals.
Product Launches: Launch of Biocore Pro, a next-generation cardiac monitoring device, and HeartSecure, a direct-to-consumer heart health screening service.
International Expansion: Health Canada approval for Biocore device, targeting the $1.56 billion Canadian cardiology devices market.
Diversification: Entry into pulmonary and neurology fields through partnerships with home-based diagnostic companies.
Revenue Growth: Revenue for fiscal year 2024 rose by 25% to $12.06 million.
EBITDA Improvement: Adjusted EBITDA improved to a loss of $7.8 million from a loss of $14.8 million in fiscal '23, with a target to achieve EBITDA breakeven later this calendar year.
Operating Expenses: Operating expenses for fiscal year 2024 were $17.2 million, down from $20.9 million in the prior year.
Future Initiatives: Plans to advance commercialization of Biocore, Bioflux, and Biocare products, with new initiatives expected in 2026.
Shareholder Return Plan
Net loss attributable to common stockholders: Net loss attributable to common stockholders for the fiscal year ended March 31, 2024 was $14.9 million, compared to a net loss of $19.5 million during the prior fiscal year.
Adjusted EBITDA: Adjusted EBITDA for the fiscal year improved to a loss of $7.8 million from a loss of $14.8 million in fiscal '23.
Operating expenses: Operating expenses for the fiscal year ended March 31, 2024 were $17.2 million, a decrease from $20.9 million in the prior year.
Revenue growth: For the fiscal year, revenue rose by 25% to $12.06 million, compared to $9.64 million in the prior year.
Gross profit: Gross profit for the quarter totaled $2.3 million, up 48% from $1.5 million in the prior year period.
Gross margin: Our gross profit percentage was 69.3% for the fiscal year ended March 31, 2024, as compared to 56.5% in the prior year.
Technology fees: Technology fees accounted for over 93% of the quarter's total revenue.
Sales compensation structure: Our shift to rewarding new device sales within our sales compensation structure has paid dividends.
Key Q&A
Earnings Word Cloud
BTCY Transcript
The earnings call highlights strong revenue growth, improved profitability, and strategic market expansion. While there are risks, such as regulatory hurdles and market penetration challenges, the company's positive free cash flows, improved gross profit margins, and strategic partnerships contribute to a favorable outlook. The absence of negative sentiment in the Q&A session further supports a positive sentiment. Despite a net loss, the reduction in losses and positive EBITDA indicate progress towards profitability, leading to a predicted stock price movement in the 2% to 8% range over the next two weeks.
The earnings call highlights strong financial performance with a 16.5% YoY revenue increase and a significant improvement in gross margins. Operating expenses have decreased, and there is progress towards profitability with positive adjusted EBITDA in Q4. The Q&A section reveals some uncertainties, but overall, management's optimism and strategic initiatives, like international expansion and data monetization, are positive. Despite some vague timelines, the company's strong financials and strategic plans outweigh the risks, suggesting a positive stock price movement.
The earnings call highlights significant revenue growth, improved gross margins, and reduced operating expenses, indicating strong financial performance. Despite challenges in market expansion and interest rates, the company's strategic initiatives in AI and new market penetration are promising. The Q&A session confirms management's proactive approach to growth and profitability, with no unclear responses. The positive sentiment is reinforced by the company's path to profitability and successful cost management, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
BTCY Report
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