Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Biotricity Inc (BTCY, Financial) achieved positive EBITDA for the first time in September, marking a significant milestone towards profitability.
- The company reported a 13% year-over-year increase in revenue for Q2 2025, reaching $3.3 million, driven by strong demand for their cardiac monitoring devices.
- Biotricity Inc (BTCY) has successfully transitioned approximately three-quarters of its business to a flat fee subscription model, resulting in a 34% year-over-year growth in flat fee revenue.
- Strategic partnerships with top group purchasing organizations (GPOs) and specialist organizations in neurology and pulmonology are expanding market reach and creating new opportunities.
- The company has improved its gross profit margin to 75.3%, up from 73.8% in the prior year, due to efficiencies gained through proprietary AI and operational improvements.
Negative Points
- Despite improvements, Biotricity Inc (BTCY) still reported a net loss of $1.65 million for Q2 2025, although this is a reduction from the previous year.
- The company faces challenges with longer sales cycles, particularly in larger clinics and hospitals, which could delay revenue realization.
- Operating expenses remain high, although they have decreased by 34% compared to the same period last year.
- Biotricity Inc (BTCY) is still in the early stages of its partnerships in neurology and pulmonology, making it difficult to predict the full potential of these markets.
- The company is reliant on its inventory order to achieve profitability, indicating potential risks if sales targets are not met.
Q & A Highlights
Q: Can you elaborate on the predictive capabilities you're exploring with your cardiac AI cloud? And how do you anticipate these capabilities to impact patient outcomes and operational efficiencies?
A: We are focusing on early detection of complex arrhythmias such as atrial fibrillation and heart blocks. By predicting deterioration early, we can bring patients in sooner, reducing healthcare costs and improving patient outcomes. This also allows for faster device turnover, enhancing operational efficiency. - CEO
Q: Are the SG&A reductions primarily from structural changes or partnerships with GPOs? How do you plan on maintaining these reductions and further improving cost efficiencies?
A: It's a combination of economies of scale, optimized account management, and strategic sales force focus on larger deals. As our business grows, we achieve efficiencies in account management and sales, allowing us to maintain and further improve cost efficiencies. - CEO
Q: With the largest inventory order in your history, how should we think about inventory and revenue for calendar year 2025?
A: The inventory order ensures we have the necessary resources to achieve profitability. It supports new sales, existing customer needs, and transitions to newer products. If we sell all units from this order, we will be well into profitability. - CEO
Q: Can you give us a market status update on your operations in Canada following Health Canada approval of Biotres?
A: Our focus in Canada is on finding distribution partnerships. We've initiated one relationship that's already generating revenue, and we expect to see more revenue from Canada in the next couple of quarters. - CEO
Q: Can you discuss the opportunities in neurology and pulmonology and the specific market segments you find most promising?
A: We are targeting partnerships with groups focusing on patient populations with cardiac comorbidities. Our partnerships in pulmonology and neurology are active and generating revenue, proving the commercial potential of these strategic relationships. We expect to build more such partnerships in the future. - CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
