Biotricity (BTCY) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 was transformative, with advancements in remote biometric monitoring, strategic partnerships, and a clear path to profitability and positive EBITDA.

• Expansion of the cardiac AI cloud platform, leveraging Amazon AWS and Google TensorFlow, and over 500 billion heartbeats of anonymized data.

• Strategic alliances with three major GPOs provide access to 90% of U.S. hospitals, expanding market reach.

• Health Canada approval for BioCore device opens new revenue opportunities in the $1.56 billion Canadian cardiology devices market.

• The company continues to invest in R&D, sales expansion, and new product launches, while facing liquidity challenges and a going concern risk.

Financial highlights

• FY24 revenue grew 25.2% year-over-year to $12.1M, with Q4 revenue at $3.2M, up 15.9%.

• Gross margin improved to 69.3% for FY24 (from 56.5% in FY23); Q4 gross margin was 71.5%.

• Net loss for the year was $14.9M, improved from $19.5M; adjusted EBITDA loss improved to $7.8M from $14.8M.

• Technology fees accounted for over 93% of Q4 revenue and $11.2M of FY24 revenue, reflecting strong customer retention.

• Operating expenses for the year were $17.2M, down from $20.9M; SG&A expenses decreased by 17%, R&D by 20%.

Outlook and guidance

• On track to achieve EBITDA neutrality and breakeven later in the calendar year.

• Management expects continued revenue growth and margin improvement as technology fees become a larger share of revenue.

• Additional capital will be required to fund operations and growth; management is pursuing equity and debt financing.

• Margin improvement expected to continue as recurring revenue increases, with subscription margins trending into the mid- to upper-70% range.

• Continued focus on commercialization of BioCore, BioFlux, and BioCare products, and expansion into new international markets.