ZOM - Zomedica expands topline thanks to acquisitions and organic growth

2023-03-15 17:35:59 ET

Announcing financials for 2022, animal health company Zomedica ( NYSE: ZOM ) said Wednesday that its revenue for the full year jumped ~361% to $18.9M through a combination of acquisitions and organic growth.

Revenue growth was driven by the first full year of PulseVet sales following the 2021 acquisition and recently acquired Assisi products. However, Zomedica's ( ZOM ) revenue rose only 25% when adjusted for pre-acquisition sales of PulseVet and Assisi products.

As PulseVet sales grew 23% to $4.9M, revenue for Q4 2022 rose 51% YoY to $6.2M, while gross margin reached 70%, a decline from 72% for the full year, which in turn dropped from 74% in 2021.

Zomedica's ( ZOM ) cash burn stood at $2.5M in the final quarter, and the company's cash, cash equivalents, and available-for-sale securities stood at $156M at the end of the year, indicating a ~20% decline mainly due to cash flows used in operating and investing activities.

"Our Assisi Loop® line of products, which joined Zomedica's portfolio of offerings in Q3, proved to be a solid contributor to our 2022 results with roughly $2.1M in sales for the year," Chief Executive Larry Heaton remarked.

Read: In January, Seeking Alpha contributor Out of Ignorance argued that Zomedica's ( ZOM ) "buy and build strategy is highly appealing."

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