Zomedica (ZOM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $6.1 million, up 2% year-over-year, driven by 68% growth in diagnostics, while therapeutic device sales were flat and capital revenue declined 12% due to sales force disruptions and macroeconomic headwinds.

• Net loss for Q2 2024 was $23.9 million, primarily due to a $16 million non-cash goodwill impairment charge; gross profit margin improved to 71% from 67% YoY.

• International expansion accelerated with new distribution agreements in the Middle East, India, Egypt, and Costa Rica, and CE Mark approvals for key products, positioning for stronger H2 and 2025 growth.

• Significant product milestones included new assay launches for Truforma, AI integration for TruView, and expanded clinical indications for PulseVet.

• CFO Peter Donato announced his resignation; revenue guidance for 2024 suspended pending new CFO, but management expects H2 revenue acceleration.

Financial highlights

• Q2 2024 revenue: $6.1 million (+2% YoY); six-month revenue: $12.4 million (+8% YoY); consumables revenue: $4.4 million (+8% YoY), now 72% of total revenue.

• Diagnostics segment Q2 2024 revenue: $420,000 (+68% YoY); therapeutic devices: $5.7 million (flat YoY).

• Gross profit: $4.4 million (margin 71%, up from 67% YoY).

• Net loss: $23.9 million (2.4 cents/share), including $16 million in non-cash impairment charges; adjusted non-GAAP EBITDA loss: $5.2 million.

• Cash at quarter-end: $7.9 million; working capital: $81.4 million.

Outlook and guidance

• Revenue guidance for 2024 suspended; management expects H2 revenue to step up, with international and seasonal trends as tailwinds.

• Gross margin expected to approach or exceed 70% for the full year.

• Adjusted cash burn projected at $12–18 million for the year, likely at the high end.

• Sufficient cash resources are expected to fund operational requirements for the foreseeable future.