Zomedica (ZOM) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $7 million, up over 10% year-over-year, driven by growth in both Therapeutic Devices and Diagnostics segments, with 14 consecutive quarters of record revenues.

• Gross margin reached 72.3%, exceeding expectations, supported by manufacturing integration and higher unit sales.

• Net loss for Q3 2024 was $6.7 million, impacted by the absence of prior year one-time gains and a $16 million goodwill impairment.

• International expansion advanced with new distributor partnerships, regulatory approvals, and CE Mark for TRUVIEW®, expanding global reach.

• Liquidity remained strong with $77.8 million in cash and equivalents, supporting ongoing growth initiatives.

Financial highlights

• Q3 2024 revenue: $7 million, up 10% year-over-year; nine-month revenue: $19.39 million, up 9%.

• Gross margin: 72.3% (vs. 69% prior year); operating expenses: $12.5 million, up 21% year-over-year but down 7% sequentially.

• Net loss: $6.7 million (Q3 2024) vs. $491,000 prior year; prior year included a $2.2 million one-time gain.

• Adjusted non-GAAP EBITDA loss: $4.3 million.

• Cash and equivalents at September 30, 2024: $77.8 million; no debt.

Outlook and guidance

• Management expects continued double-digit revenue growth and record quarterly revenues into 2025, leveraging international expansion.

• Gross margins expected to remain around 70%, with operating expenses declining as a percentage of revenue.

• Cash flow break-even targeted at $50 million annualized revenue; profitability goal shifted to 2026 due to market headwinds.

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