Executive Summary

Q1 FY2024 revenue rose 46.9% year-over-year to $3.02M, with gross margin expanding to 63.5% and SG&A down 22%, showing disciplined cost control and improved mix toward higher-margin technology fees .
Technology fees comprised 92% of revenue (72% gross margin), with device sales at $0.25M; retention remained ~98%, underpinning recurring revenue durability .
Management reiterated a clear path to profitability and positive cash flow, consistent with its prior guidance that positive cash flow is targeted by end of CY2024, while highlighting AI-driven efficiency gains and partnerships with Amazon and Google as catalysts .
Stock-relevant narrative: continued margin improvement and subscription mix shift, plus recurring revenue momentum and AI-enabled operating efficiencies, are the key near-term drivers; no formal numerical guidance was issued in Q1 .

What Went Well and What Went Wrong

What Went Well

Margin and mix improvement: gross margin increased to 63.5% (from 59.6% YoY) as technology fees rose to 92% of revenue; management expects blended margins to continue improving given ~70% gross margins on technology fees and AI-driven efficiencies .
SG&A discipline: SG&A fell 22% YoY to $3.5M, reflecting operational optimization, automation, and tighter cost controls; “we achieved a reduction of our net loss by 33% year-over-year to $3.6 million or $0.069 per share,” per CEO remarks (note 10‑Q shows 28% YoY improvement) .
Commercial traction and retention: ~98% customer retention and expanding footprint (35 states, >2,500 cardiologists) continue to strengthen recurring revenue and installed base monetization .

Management quote: “Given consistent gross margin on technology fees of approximately 70% or better…we anticipate continued improvement in overall blended gross margin over time” .
Management quote: “Our AI segment has begun to demonstrate progress and we’ve announced our strengthened relationships with Amazon and Google” .

What Went Wrong

Losses and balance sheet pressure: Net loss attributable to common shareholders was $3.60M; cash was $51K at quarter-end, with a working capital deficiency of $10.7M and substantial doubt about going concern disclosed .
Financing and covenant risk: The company was not in compliance with certain term loan covenants at quarter-end (received relief), with interest expense up and accretion costs impacting bottom line .
Sequential comparison mixed: Revenue of $3.02M rose YoY but vs Q4 FY2023 ($2.74M) and Q3 FY2023 ($2.46M), gross margin improvement drove quality but losses and leverage remain investor concerns .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$2.459	$2.740	$3.021
Gross Margin (%)	57.0%	56.0%	63.5%
Net Loss ($USD Millions)	$(4.747)	$(4.900)	$(3.602)
EPS ($USD)	$(0.091)	$(0.090)	$(0.069)

Segment breakdown

Segment	Q3 2023	Q4 2023	Q1 2024
Technology Fees ($USD Millions)	$2.253	N/A (93% of revenue)	$2.769
Device Sales ($USD Millions)	$0.206	N/A	$0.252
Tech Fees as % of Revenue (%)	91.6%	93%	91.9%

KPIs

KPI	Q3 2023	Q4 2023	Q1 2024
Gross Profit ($USD Millions)	$1.402	$1.500	$1.917
SG&A ($USD Millions)	$4.777	$4.493	$3.520
Customer Retention (%)	~98%	~98%	~98%
States Coverage (#)	32	31	35

Notes:

YoY revenue growth in Q1 FY2024 was 46.9% ($3.021M vs $2.056M), with gross margin up 390 bps YoY .
Management’s call stated net loss reduction of 33% YoY; the 10‑Q shows 28% YoY improvement (to $3.602M from $5.024M) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Positive Free Cash Flow	CY 2024	“Advancing toward positive cashflow likely by end of CY 2024”	“Clear path to profitability; focused on accelerating recurring revenue and cost efficiency”	Maintained
Blended Gross Margin	Ongoing	“Raise blended margins into ~60% range as mix shifts to tech fees”	Actual 63.5% in Q1; expect continued improvement over time	Improving
SG&A Trend	Ongoing	“Reduce/hold SG&A stable while scaling”	SG&A down 22% YoY to $3.5M; continued focus on efficiency	Maintained (executing)
Mix: Technology Fees	Ongoing	“>90% of revenue; ~71% margin”	92% of revenue; ~72% margin on tech fees	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
AI/Technology initiatives	Emphasis on AI for workflow efficiency; distribution agreements signed	Target blended margins ~60% as recurring tech fees grow; positive cash flow by end CY2024	AI highlighted as driver of margin improvements and efficiency; strengthened ties with Amazon/Google	Strengthening
Supply chain/Operations	Focus on efficiency; retooled sales force for “hunters” vs “farmers”	Device pricing strategy lowered to boost tech-fee adoption	Automation/AI lowering processing costs; SG&A reduction	Improving
Product performance	Bioflux/Biotres traction; national expansion via distributors	Bioheart recognized by Time; expanded portfolio	Biotres and Bioflux driving recurring fees; installed base and retention strong	Building
Regional trends	32 states; national exposure via distributors	31 states, >350 centers, >2,500 cardiologists	35 states coverage; installed base expansion	Expanding
Regulatory/IP	510(k) clearances; portfolio expansion	Reverse split; IP expansion	Continued FDA-cleared devices; AI-enabled tools under development	Steady
R&D execution	Balanced R&D with commercialization; targeted automation to lower COGS	Portfolio expansion; TAM growth to ~$35B	R&D focused on automation/AI to improve margins and expand predictive tools	Focused

Management Commentary

“Technology fees comprised 92% of the quarter’s total revenue…we anticipate continued improvement in overall blended gross margin over time” (CFO) .
“Our AI segment has begun to demonstrate progress and we’ve announced our strengthened relationships with Amazon and Google” (CEO) .
“We reduced our SG&A by 22% to $3.5 million…we achieved a reduction of our net loss by 33% year-over-year to $3.6 million or $0.069 per share” (CEO; note 10‑Q shows 28% YoY improvement) .
“Our goal…is to increase sales of our remote cardiac monitoring devices, ramp-up our subscription-based service, accelerate our recurring revenue, and draw a clear path to profitability” (CEO) .

Q&A Highlights

Device mix granularity: Management isn’t yet breaking out device type contribution; bulk of revenue remains Bioflux with Biotres ramping; future disclosure expected as products mature .
R&D prioritization: Focused on automation and AI to lower costs (e.g., targeted 3% COGS reductions per initiative) and on near-term, revenue-driving enhancements, with grants/partners to reduce spend where possible .
Geographic expansion: Goal of 50-state coverage via distribution partnerships; direct sales target key markets; announcements expected as coverage expands .
Margin sustainability: As SaaS/technology fees approach ~99% of revenue, steady-state margins will converge to tech-fee margins (~70%); quarterly mix disclosures will track progression .
OpEx sustainability: Ratios achieved this quarter expected to be maintained as processes mature; costs will grow with revenue but efficiency should hold .

Estimates Context

S&P Global consensus estimates for Q1 FY2024 (Revenue, EPS) were not available due to a data retrieval limit. As a result, no beat/miss analysis vs Wall Street consensus could be performed for this quarter [GetEstimates error].

Metric	Q1 2024 Consensus	Actual Q1 2024
Revenue ($USD Millions)	N/A	$3.021
EPS ($USD)	N/A	$(0.069)

Key Takeaways for Investors

Recurring revenue momentum: With ~92% of revenue from technology fees and ~98% retention, the subscription base is strengthening; monitor quarterly mix and its impact on margins and cash flow .
Margin trajectory: Blended gross margin at 63.5% reflects mix shift and AI-enabled efficiencies; continued improvement is likely as technology fees’ share rises and cost structure optimizes .
Cost discipline: SG&A down 22% YoY to $3.5M; automation and process improvements support scalability and better operating leverage .
Balance sheet risk: Working capital deficit and going-concern disclosure plus covenant relief on the term loan warrant close attention; financing progress remains critical near term .
Product/IP pipeline: Continued expansion of FDA-cleared devices and AI tools (Amazon/Google alignment) supports differentiated positioning and potential TAM capture (~$35B cited previously) .
Near-term trading drivers: Quarterly margin/mix disclosures, retention metrics, and any updates on positive cash flow timing or financing/covenants will likely be stock-moving items .
Medium-term thesis: Execution on recurring revenue scale, sustained margin expansion, and balance sheet stabilization could re-rate the equity; operational risks center on funding, loan covenants, and maintaining efficiency gains .

Sources: 10‑Q Q1 FY2024, 8‑K press release Q1 FY2024, Q1 FY2024 earnings call transcript, Q4 FY2023 8‑K press release, Q3 FY2023 10‑Q/call .

BIOTRICITY INC. (BTCY)·Q1 2024 Earnings Summary