In This Article:
Release Date: March 25, 2025
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 33% year-over-year increase in net revenue for 2024, reaching $86.7 million.
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The company achieved a significant 39% year-over-year growth in sales of soft tissue products, contributing to the overall revenue increase.
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Sanara MedTech Inc (NASDAQ:SMTI) generated positive adjusted EBITDA of $2.7 million in 2024, reflecting a $2.6 million improvement from the previous year.
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The company expanded its distributor network to over 350 partners by the end of 2024, enhancing its sales coverage and market penetration.
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Sanara MedTech Inc (NASDAQ:SMTI) secured a new debt facility for up to $55 million, providing increased financial flexibility for future growth initiatives.
Negative Points
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The Tissue Health Plus segment reported a net loss of $2.6 million, offsetting some of the profitability gains from the surgical segment.
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Operating expenses increased by 51% to $24.4 million in the fourth quarter, driven by higher selling, general, and administrative expenses.
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The company reported a net loss of $1.7 million for the fourth quarter, compared to a net loss of $0.3 million in the same period last year.
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Interest expenses increased due to the CRG term loan, contributing to a higher other expense of $1.3 million in the fourth quarter.
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Despite progress, the company remains in the early stages of its commercialization efforts, indicating ongoing challenges in market expansion.
Q & A Highlights
Q: Can you provide an update on the chemo mouthpiece and the plans for 2025? A: The chemo mouthpiece is currently being introduced to the market. We are awaiting the publication of a health economic study and a clinical study involving numerous patients. Additionally, efforts are underway to integrate the chemo mouthpiece into commercial pay contracts, leveraging our existing customer base. These steps are crucial for the product's market adoption in treating oral mucositis. Ron Nixon, Executive Chairman and CEO
Q: How will you measure the success of the Tissue Health Plus (THP) pilot launch in Q2? A: Success will be measured by our ability to integrate with the pilot customer's systems, standardize clinical workflows, and improve documentation quality to reduce reimbursement risk. The pilot involves a wound provider group with strategic objectives to innovate services and transition to advanced payment models. SAM Mapala, Leader of Tissue Health Plus