• Revenue: Reported $18.5 million, up 19% year-over-year, meeting estimates of $18.5 million.

• Net Loss: Increased to $1.8 million from $1.2 million year-over-year, above the estimated net loss of $0.6 million.

• Earnings Per Share (EPS): Recorded a loss of $0.21 per share, below the estimated loss of $0.07 per share.

• Adjusted EBITDA: Improved to $0.3 million, compared to negative $0.3 million in the same quarter last year.

• Operational Highlights: Achieved tenth consecutive record revenue quarter, driven by expanded market penetration and geographic expansion.

• Strategic Developments: Enhanced sales force optimization and sales processes; added executive team members post-quarter.

• Market Focus: Continued to expand in surgical, chronic wound, and skincare markets, leveraging new and existing U.S. distribution networks.

• Warning! GuruFocus has detected 3 Warning Signs with SMTI.

On May 13, 2024, Sanara MedTech Inc. (NASDAQ:SMTI), a leader in the medical technology sector specializing in surgical and chronic wound care products, disclosed its financial outcomes for the first quarter of 2024 through its 8-K filing. Despite achieving a record tenth consecutive quarter of revenue growth, the company reported an increase in net losses compared to the previous year.

Company Overview

Sanara MedTech Inc. is committed to enhancing clinical outcomes and reducing healthcare costs through its innovative products in the surgical, chronic wound, and skincare markets. The company's portfolio includes CellerateRX Surgical Activated Collagen and a range of other advanced biologic products aimed at improving patient care across various medical settings.

Financial Performance Highlights

For the quarter ended March 31, 2024, Sanara reported a significant 19% increase in net revenue, reaching $18.5 million up from $15.5 million in the same period last year. This growth was primarily driven by enhanced sales of soft tissue repair products and expanded market penetration. Despite the revenue upsurge, the company's net loss widened to $1.8 million from $1.2 million year-over-year, attributed to increased selling, general, and administrative (SG&A) expenses, alongside higher amortization costs stemming from recent acquisitions.

Strategic and Operational Developments

Under the leadership of CEO Ron Nixon, Sanara has focused on refining its sales force and optimizing data analytics, which contributed to surpassing internal forecasts for Q1 2024. The period also saw strategic expansions in both new and existing U.S. markets, enhancing the company's distribution network.