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Newtopia (NEWU) investor relations material

Newtopia Q3 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Logotype for Newtopia Inc
Q3 2024 earnings summary27 Nov, 2024

Executive summary

  • Achieved strong clinical outcomes in weight loss and A1C reduction, serving over 100,000 individuals to date.

  • Entered a new strategic partnership with a supplemental insurance payvider, expanding access to U.S. workers as a fully covered benefit in 2025.

  • Renewed and expanded contracts with key Fortune 500 and Fortune 10 clients, including new program launches and expanded coverage.

  • Only provider in its space with Full-Plus CDC accreditation and industry-leading engagement rates, supporting both medication and non-medication-based interventions.

  • Partnerships with Fortune 500 employers, health plans, and providers drive a recurring revenue model and access to a large, growing addressable market in North America.

Financial highlights

  • Q3 2024 revenue was $1.0M (C$986K), down from $2.4M year-over-year, due to client loss and incentive changes.

  • Gross profit for Q3 2024 was $330,000, with a margin of 34%–37%, down from 57% in Q3 2023.

  • Selling, general, and administrative expenses improved 16% year-over-year to $1.0M; adjusted operating expenses down 16% to $1.3M.

  • EBITDA/adjusted operating loss for Q3 2024 was $987,000, compared to a gain of $21,000 in Q3 2023.

  • Cash at September 30, 2024 was $10,200, down from $387,339 at year-end 2023; shareholders’ deficit increased to $12.6M.

Outlook and guidance

  • Targeting cash flow positivity and profitability in 2025, supported by new partnership channels and operational efficiencies.

  • Anticipates accelerated participant acquisition through the payvider partnership and expanded client renewals.

  • Expects to report results from the Heartland Whole Health Institute project in Q4, with early data showing strong engagement and weight loss outcomes.

  • Focused on expanding innovation partnerships, integrating GLP-1 drugs, and leveraging health AI.

  • Significant expansion opportunities exist within current client bases, with only 35% population access achieved to date.

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Frequently asked questions

Newtopia Inc. is a healthcare technology company specializing in delivering personalized health and wellness programs aimed at disease prevention and management. The company offers behavior change programs that focus on weight management, stress reduction, and physical activity to reduce the risk of chronic conditions such as obesity, diabetes, and heart disease. By leveraging data analytics, genetic testing, and digital engagement tools, Newtopia creates tailored plans for individuals to improve long-term health outcomes. Its services are primarily targeted toward large employers, health insurers, and health systems looking to reduce healthcare costs through preventative care solutions. The company is headquartered in Toronto, Ontario, and its shares are listed on the TSXV.

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