GuruFocus -
- Revenue: $2.5 million for Q3 2024, a 22% increase year-over-year.
- International Revenue: $1.3 million for Q3 2024, up $0.5 million from Q3 2023.
- Gross Margin: 73% for Q3 2024, consistent with Q3 2023.
- Operating Loss: $1.5 million for Q3 2024, a decrease of $38,000 from Q3 2023.
- Net Loss: $1.5 million or $0.02 per share for Q3 2024, unchanged from Q3 2023.
- Cash and Cash Equivalents: $4.8 million as of September 30, 2024.
- Working Capital: $6.9 million as of September 30, 2024.
- US E-commerce and Dental Service Revenue: $1.2 million for Q3 2024.
- International Sales Growth: 57% increase in international dental sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Milestone Scientific Inc (NYSE:MLSS) achieved a 22% increase in year-over-year revenue, reaching $2.5 million, primarily driven by strong growth in the dental division.
- International dental sales increased by 57% as logistics challenges were resolved, contributing to higher revenue.
- The shift to an e-commerce sales model domestically has strengthened gross margins, which remain high at 73%.
- The CompuFlo Epidural System has gained traction with respected clinics adopting the technology, enhancing its market presence.
- The company has secured Medicare Part B physician payment rate assignment for the CompuFlo Epidural System, expanding its financial accessibility and market potential.
- Milestone (WA:MMD) Scientific Inc (MLSS) recorded no revenue from China for the third quarter, impacting overall international sales.
- Despite revenue growth, the company reported an operating loss of approximately $1.5 million for the third quarter.
- International revenue for the nine months ending September 30, 2024, decreased by $0.6 million compared to the same period in 2023.
- The company faces challenges in expanding its JMAC coverage, which is crucial for broader adoption of the CompuFlo Epidural System.
- There is a need for continuous efforts to convert sales leads into actual sales, which requires significant resources and time.
A: Discussions have been positive since the reimbursement decisions. We signed a partnership with Axial Biologics and launched our pricing strategy in early September. We have about 40 hot leads, and clinics are actively engaging in pilot programs to evaluate our technology.
Q: How are you balancing growing the sales pipeline while converting leads?
A: We focus on increasing the sales funnel and converting leads simultaneously. We track clinics in the evaluation phase and aim to convert them quickly after demos and trials. Our strategy involves continuous engagement to ensure both pipeline growth and conversion.
Q: Can you share information on utilization and reorder rates from clinics using CompuFlo?
A: Clinics like Dr. Demesmin's in New Jersey show strong reordering patterns and increased utilization. New clinics are purchasing significant quantities of consumables, indicating high initial usage and acceptance of our pricing strategy.
Q: What are the drivers behind the strong international dental sales, and how do you plan to maintain momentum?
A: The resolution of logistics issues and closing sales gaps contributed to strong international dental sales. We aim to surpass last year's fourth-quarter sales and continue to grow through effective execution and strategic focus on e-commerce.
Q: Can you elaborate on the strategy for getting additional JMACs onboard and the timeline involved?
A: We are in advanced discussions with four additional JMACs, following a similar process to the first three. We educate and engage with JMACs, supported by clinicians, to secure positive pricing assignments. We expect continuous progress in the coming quarters.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.