Yahoo Finance Biolase Inc (BIOL) Q1 2024 Earnings Call Transcript Highlights: Strategic Gains Amidst Economic ...
Revenue Growth: Projected to increase by 6% to 8% year-over-year.
Full Year Revenue: Expected to be between $52 million and $53 million.
Consumable Sales: Increased by 14% year-over-year.
Gross Margin: Improved by 1% due to lower warranty expenses and in-house manufacturing efficiencies.
Operating Expenses: Decreased by 9% to $7.9 million, down from $8.6 million year-over-year.
Adjusted EBITDA Loss: Reduced by 21% to $3.5 million from $4.4 million in the previous year.
Net Cash Position: Ended the quarter with $6.4 million in cash and cash equivalents.
Cost Savings: Annualized savings of approximately $5 million to $6 million expected from operational efficiencies.
Release Date: May 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
67% of U.S. quarterly sales came from new customers, indicating strong new customer adoption and market penetration.
Significant growth in consumable sales, marking the third strongest quarter in company history, with a 14% increase year-over-year.
Substantial reduction in adjusted EBITDA loss by 21% compared to the same quarter last year, highlighting improved operational efficiency.
Continued dominance in the dental laser market with approximately 60% global market share under the Waterlase brand.
Successful implementation of cost reduction initiatives, including a 20% reduction in U.S. workforce, contributing to a 9% decrease in total operating expenses.
Negative Points
Challenging economic environment and elevated interest rates continue to impact overall sales and market conditions.
Gross margin remained relatively flat compared to the previous year, with only a slight improvement despite cost-saving measures.
The adoption of all-tissue laser technology in the dental market remains low, with over 90% of dentists yet to embrace this technology.
Severance expenses incurred due to workforce reductions impacted financial results for the quarter.
Decision-making time for purchasing high-value equipment like the Waterlase system has increased, affecting sales cycles.
Q & A Highlights
Q: With regard to the seasonality in business, how are you expecting revenue to be up sequentially in the second quarter? A: John Beaver, President & CEO of BIOLASE, confirmed that historically, the company's revenue follows a seasonal pattern with Q4 and Q2 being stronger. He expects this year to follow the same trend.
Q: Has the positive radiographic data from the McGuire study helped with any of the dental service organizations? A: John Beaver noted that while the study supports ongoing discussions with DSOs, it alone hasn't significantly accelerated laser purchases. The study highlighted equivalent clinical efficacy of laser use in periodontal surgery compared to traditional methods, with benefits in patient-reported outcomes like reduced pain.
Q: Have you noticed any significant change in the economic outlook from your dental customers? A: John Beaver indicated that most dentists seem to be less concerned or maintaining the same level of concern about the economy, with steady or potentially improving patient traffic.
Q: Have there been any significant changes in how long it takes for dentists to decide whether to purchase a Waterlase system? A: According to John Beaver, the decision-making time for purchasing all-tissue lasers increased about 4 to 5 quarters ago and has remained consistent through 2023 and into 2024.
Q: Congratulations on the strong fiber being brought in-house. With upcoming price increases and expected scale, where do you think the gross margins could end up for the year? A: John Beaver anticipates that gross margins will approach mid-40s percent in the middle of the year and aims to reach or be very close to 50% by the fourth quarter.
Q: What are your expectations for revenue growth and adjusted EBITDA for the full year 2024? A: Jennifer Bright, CFO of BIOLASE, reiterated the guidance for 2024, expecting revenue growth of 6% to 8% year over year, aiming for $52 million to $53 million in full-year revenue. She also expects to achieve positive adjusted EBITDA for the full year 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
