ORLANDO, Fla., Feb. 20, 2020 (GLOBE NEWSWIRE) -- Earlier this week, the medical diagnostic and healthcare tech company opened its fourth quarter earnings book covering the three-month period ending December 31, 2019. Here’s what the company revealed in its latest SEC Form 10-Q (which can be found on the company’s investor page):
- Biotricity’s net revenue in Q4 showed a year-over-year increase of 224.63%.
- Gross revenues earned in Q4 alone is equal to 96% of the gross revenues that had earned over the last 12-month fiscal year ending March 31, 2019.
- Biotricity’s technology fee revenue grew over 500% from March 31 to December 31, 2019.
What Biotricity’s Positive Results Mean for Investors
Biotricity’s fourth quarter earnings growth tells us a couple of things. First, despite the big numbers, this is the kind of stellar growth investors expect to see from companies operating in emerging industries, and it explains why investors invest early with speculative yet promising companies like Biotricity--namely, to capture this kind of growth. More importantly, Biotricity is still a young company, despite its leading position in the biometric monitoring technology space. As it continues to grow, potentially attracting a larger number of institutional and retail investors, the company has lots of room for expansion of its operational capacity, market share, and revenue potential. And should it continue in its current growth trajectory, Biotricity’s prospects make it an investment case strongly worth considering.
What Are the Risks to Consider?
As with many emerging companies undergoing development and commercialization, Biotricity is pouring a lot of capital resources into building infrastructure and sales.
As its executive team wrote in their Form 10-Q, “In April 2019, we decided to expand sales of the product beyond limited release by doubling the size of our salesforce and our geographic footprint to 11 US states,” stating that “the sales pipeline of our product has begun to grow,” and that in line with their strategy, “Biotricity continues to grow deployment of its fleet of remote patient monitoring devices.”
Of course, an invest-in-the future model can often mean bypassing revenues today, and this is particularly true of emerging companies (remember Amazon in the 1990’s?). The result: Biotricity incurred a net loss of $2,394,676 loss per share of 0.066 in its fourth quarter, according to its 10-Q filing.
Founder and CEO Dr. Waqaas Al-Siddiq responded, “During this period of initial commercialization of the Bioflux®, we devoted, and expect to continue to devote, significant resources in the areas of capital expenditures and research and development costs.”
So, what are investors to expect in the coming months with regard to the company’s balance sheet? Al-Siddiq continues, “We also expect to incur additional operating losses, as we build the infrastructure required to support higher sales volume.”
Providing a big-picture view toward the company’s future prospects, John Ayanoglou, Biotricity’s CFO commented (emphasis ours):
- “Revenue growth for the three months, which ended December 31, 2019 is particularly significant given seasonal lows that are anticipated.”
- “Our growth trajectory continues to improve, with total revenues increasing by 10.4% and recurring technology fee revenues increasing by 28% during this same period.”
- “Based on its current sales profile, at the margin, approximately 65% of Biotricity’s revenues are comprised of annual recurring revenues (ARR), and this component is expected to increase in both absolute and percentage terms into the future.”
FDA Clearances Still in Play
Our last report discussed in detail Biotricity’s 510(k) filing to bring its next generation Electrocardiogram (ECG) to market.
As detailed in its press release:
- Advanced ECG analysis software that can analyze and synthesize patient ECG monitoring data with the purpose of distilling it down to the important information that requires clinical intervention, significantly reducing costs;
- The Biotres patch solution, which will be an innovative product in the field of Holter monitoring, expanding our top and bottom-line revenues; and
- The Bioflux® 2.0, which is the next generation of our award winning Bioflux®, further expanding our revenue generating telemedicine product line-up.
The potential industry benefit of Biotricity’s diagnostic technology is that it may cut around $57 billion in US public healthcare spending, lowering healthcare costs overall by providing a preventive and real-time monitoring solution.
About Biotricity Inc.
Biotricity is a modern medical technology company focused on delivering innovative, remote biometric monitoring solutions to the medical and consumer markets, including diagnostic and post-diagnostic solutions for chronic conditions and lifestyle improvement. Biotricity’s R&D continues to focus on the preventative healthcare market, with a vision of putting health management into the hands of the individual. The company aims to support the self-management of critical and chronic conditions with the use of innovative solutions to ease the growing burden on the healthcare system. To learn more, visit www.biotricity.com
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