Psychemedics (PMD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $5.2 million, down 9% year-over-year, with a net loss of $0.5 million, reflecting lower volumes and labor shortages.

• Net loss for Q3 2024 was $0.09 per share, improving from $0.36 per share in Q3 2023.

• Nine-month 2024 revenue totaled $15.3 million, down 11% year-over-year.

• Net loss for the nine months was $2.1 million ($0.35 per share), compared to $3.2 million loss ($0.56 per share) in 2023.

• The company is pursuing a reverse/forward stock split and delisting from Nasdaq, pending shareholder approval, to reduce costs and focus on core operations.

Financial highlights

• Q3 2024 revenue was $5.2 million, down from $5.7 million in Q3 2023; nine-month revenue was $15.3 million, down 11% year-over-year.

• Gross profit for Q3 2024 was $2.0 million, down 2% year-over-year; gross margin remained at 37% for the nine-month period.

• Net loss for Q3 2024 was $0.5 million, compared to $2.1 million in Q3 2023.

• Operating expenses for Q3 2024 decreased 18% year-over-year, driven by lower personnel costs.

• Cash and cash equivalents at September 30, 2024, were $1.4 million, down from $2.0 million at year-end 2023.

Outlook and guidance

• Management expects existing funds, cash flow from operations, and proceeds from the transaction to be adequate for at least the next 12 months.

• The company anticipates annual cost savings of $845,000 from going private and delisting.