Sanara MedTech Inc. Reports Record Sales in Q3 2023 with Narrowed Net Loss and Positive ...
Sanara MedTech Inc. (NASDAQ:SMTI) achieves eighth consecutive record sales quarter with $16.0 million in net revenue.
Net loss narrows to $1.1 million in Q3 2023 from $1.5 million in Q3 2022, with positive Adjusted EBITDA of $0.3 million.
Strategic acquisitions and new product launches, including ALLOCYTE Plus and BIASURGE, set to drive future growth.
Company faces slowed growth for CellerateRX revenues due to market challenges, countered with strategic sales adjustments.
On November 13, 2023, Sanara MedTech Inc. (NASDAQ:SMTI) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023. The company, which specializes in developing and commercializing medical technologies for surgical, chronic wound, and skincare markets, reported a record-breaking sales quarter and a reduction in net loss compared to the same period in the previous year.
Financial Performance Summary
Sanara MedTech Inc. (NASDAQ:SMTI) generated net revenue of $16.0 million for Q3 2023, marking an impressive 23% increase from the $13.0 million reported in Q3 2022. This growth is attributed to the company's successful market penetration and geographic expansion, as well as additional revenues from the Scendia acquisition and the expansion of its independent distribution network.
The company's net loss before income taxes decreased significantly to $1.1 million in Q3 2023 from a loss of $3.2 million in the same quarter of the previous year. This improvement was primarily due to operating expenses increasing at a slower rate than net sales, along with the benefit recorded from the change in fair value of earnout liabilities. The net loss for Q3 2023 stood at $1.1 million, compared to a net loss of $1.5 million for Q3 2022.
Operational Highlights and Challenges
Sanara MedTech Inc. (NASDAQ:SMTI) continued to expand its market presence, with its products being sold in over 1,000 facilities across 32 states and the District of Columbia. The company also completed the strategic acquisition of assets related to its collagen business, which is expected to contribute materially to the bottom line by eliminating royalties paid on CellerateRX Surgical Powder and Gel and HYCOL Hydrolyzed Collagen.
Despite the overall growth, CellerateRX revenues faced a slowdown in quarter-over-quarter growth due to unique market challenges. The company is actively adjusting its sales strategies to address these challenges and improve facility penetration.
Strategic Acquisitions and New Product Launches
Post the third quarter, Sanara MedTech Inc. (NASDAQ:SMTI) completed its first sales of ALLOCYTE Plus and BIASURGE, which are expected to be significant contributors to the company's future growth. These products aim to provide improved outcomes for patients while reducing healthcare expenditures.
Adjusted EBITDA and Non-GAAP Measures
Sanara MedTech Inc. (NASDAQ:SMTI) reported a positive Adjusted EBITDA of $0.3 million for Q3 2023, a notable improvement from the negative Adjusted EBITDA of $1.6 million in Q3 2022. The company uses non-GAAP financial measures such as Adjusted EBITDA to provide a clearer understanding of its operating performance and to facilitate comparisons across periods.
Looking Ahead
With strategic acquisitions, new product launches, and a focus on addressing operational challenges, Sanara MedTech Inc. (NASDAQ:SMTI) is positioned for continued growth. The company remains committed to improving patient outcomes and expanding its product portfolio in the surgical and wound care markets.
Investors and stakeholders are encouraged to review the detailed financial tables and reconciliations provided in the company's 8-K filing to gain a comprehensive understanding of Sanara MedTech Inc. (NASDAQ:SMTI)'s financial position and performance.
Sanara MedTech Inc. (NASDAQ:SMTI) will host a conference call to discuss the Q3 2023 results and provide further insights into the company's strategic direction and operational plans.
For a detailed review of the financial statements and the reconciliation of GAAP to non-GAAP financial measures, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Sanara MedTech Inc for further details.
This article first appeared on GuruFocus.
