Zomedica (ZOM) Small-Cap Growth Virtual Investor Conference summary

Market overview and industry trends

• Veterinary services market estimated at $62 billion, with strong growth driven by increased pet ownership and changing demographics favoring pet adoption over traditional family formation.

• Younger generations are treating pets as family, leading to higher spending on animal health and care.

• Veterinary practices face headwinds from labor shortages and loss of high-margin retail sales, creating demand for efficiency-enhancing solutions.

• The company addresses a $2 billion+ market with five product platforms across two operating segments.

• Industry trends and company offerings position it for continued growth and market share expansion.

Product portfolio and innovation

• Two main segments: therapeutic devices (PulseVet, Assisi) and diagnostics (TRUFORMA, TRUVIEW, VetGuardian).

• PulseVet leads in equine therapy, with expansion into small animal markets and recurring revenue from consumables.

• Assisi is sold via retail channels like Amazon and Chewy, with high repeat purchase rates.

• Diagnostics segment features point-of-care solutions, including TRUFORMA (razor/razor blade model), TRUVIEW (AI-enabled microscope), and VetGuardian (wireless monitoring).

• Five new TRUFORMA assays to launch in 2024, leveraging recent Qorvo Biotechnologies acquisition.

Financial performance and guidance

• Achieved 33% revenue growth and 69% gross margins in the last year, with $25.2 million in annual revenue.

• Operating cash burn reduced to under $11 million for the year, with over $91 million in cash and no debt.

• Revenue guidance for 2024 set at $31–$35 million, representing 23%–39% growth.

• Gross margin guidance of 65%–70%, with expectations to exceed 70% as acquisitions are integrated.

• First cash flow positive months expected in late 2025, with cash reserves projected to remain above $65 million.