In This Article:
Release Date: November 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sanara MedTech Inc (NASDAQ:SMTI) reported a 35% year-over-year increase in net revenue for Q3 2024, marking its 12th consecutive record revenue quarter.
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The company achieved an improved adjusted EBITDA of $800,000 in Q3 2024, up from $300,000 in the same period of 2023.
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Sanara MedTech Inc (NASDAQ:SMTI) expanded its product reach, with sales in over 1,200 hospitals across 34 states and the District of Columbia.
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The company is actively investing in its THP technology platform, with a commercial launch expected in mid-2025.
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Sanara MedTech Inc (NASDAQ:SMTI) has established strategic partnerships, including a $5 million investment in Chemo Mouthpiece LLC, aligning with its wound and skin care strategy.
Negative Points
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The surgical segment reported a net loss of $200,000 in Q3 2024 and a year-to-date net loss of $2.9 million.
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SG&A expenses increased significantly to $19 million in Q3 2024 from $13.9 million in the same period of 2023.
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The company reported a net loss of $2.9 million for Q3 2024, compared to a net loss of $1.1 million in Q3 2023.
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Interest expenses rose to $900,000 in Q3 2024, up from $200,000 in Q3 2023, primarily due to a term loan.
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The Tissue Health Plus segment generated a negative segment EBITDA of $1.7 million during Q3 2024.
Q & A Highlights
Q: Can you walk us through the rationale for the investment in the mouthpiece and how it fits into your broader strategy? A: Our strategy has always been wound and skin care. The chemo mouthpiece directly impacts a skin condition in the chemotherapy oncology space. It addresses mucositis sores, which are essentially wounds in the mouth, and aligns well with our overall strategy. (Ron Nixon, Executive Chairman and CEO)
Q: How has the pilot program with a podiatry group for THP progressed? A: We are on target to conduct pilots in the first half of 2025. We have a list of partners we're working with, and early previews have been well received. (Sam Mapa, Leader of Tissue Health Plus)
Q: How has it gone attracting new operational personnel for THP? A: We've successfully attracted a skilled team with execution experience in this space. We've also integrated external partners to enhance execution. (Sam Mapa, Leader of Tissue Health Plus)
Q: How should we think about OpEx for the balance of this year and 2025 as you launch THP? A: We have carefully planned our budget to execute our strategy, and we expect continued growth in adjusted EBITDA. We don't foresee any surprises. (Ron Nixon, Executive Chairman and CEO)