• Revenue: $18.5 million in Q1 2024, up 19% from $15.5 million in Q1 2023.

• Net Loss: $1.8 million in Q1 2024, increased from a net loss of $1.2 million in Q1 2023.

• Adjusted EBITDA: Positive $300,000 in Q1 2024.

• SG&A Expenses: $16.2 million in Q1 2024, up from $13 million in Q1 2023.

• R&D Expenses: Decreased to $0.9 million in Q1 2024 from $1.3 million in Q1 2023.

• Cash Position: $2.8 million at the end of Q1 2024.

• Soft Tissue Product Sales: Increased to $16.1 million in Q1 2024 from $12.9 million in Q1 2023.

• Bone Fusion Product Sales: Slightly decreased to $2.5 million in Q1 2024 from $2.6 million in Q1 2023.

• Facilities: Products sold in over 1,080 facilities across 34 states and the District of Columbia as of Q1 2024.

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

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Sanara MedTech Inc reported its tenth consecutive record quarter with $18.5 million in revenue, marking a 19% increase over the prior year.

• The company has made significant advancements in data analytics, sales force optimization, and sales processes, which are expected to continue driving growth.

• Sanara MedTech Inc has strengthened its cash position through a new debt facility with CRG, providing access to growth and acquisition capital.

• The partnership with InfuSystem is expanding, with new initiatives to distribute advanced wound care products into various healthcare facilities, potentially boosting market penetration.

• Sanara MedTech Inc has made significant progress in intellectual property and manufacturing processes for the Cellerate product line, enhancing its competitive edge.

Negative Points

• The company reported a net loss of $1.8 million for the quarter, which is higher than the net loss of $1.2 million during the same period in 2023.

• There was a recent CEO transition, which could pose risks to leadership stability and strategic execution, despite assurances of minimal disruption.

• Sales of bone fusion products slightly decreased from $2.6 million in 2023 to $2.5 million in 2024, indicating challenges in product adoption.

• SG&A expenses increased to $16.2 million from $13 million in the previous year, outpacing revenue growth and impacting profitability.

• The company is still in the process of seeking strategic partners for the Tissue Health Plus strategy, indicating potential delays in fully capitalizing on this initiative.

Q & A Highlights

Q: Has the recent CEO transition disrupted the sales momentum you've shown for Q1? A: Ron Nixon, CEO, stated that there has been zero disruption to the sales momentum following the CEO transition. He emphasized the strength and stability of the team, particularly highlighting the role of Seth Yon in driving the sales efforts.