Executive Summary

INVO delivered record Q1 2024 revenue of $1.58M (+353% YoY), driven by clinic revenue scaling post the Wisconsin Fertility Institute (WFI) acquisition; adjusted EBITDA improved by ~$1.29M YoY, narrowing to $(0.46)M .
Sequentially, revenue accelerated for the third straight quarter (Q3→Q4→Q1: $0.97M → $1.38M → $1.58M), while adjusted EBITDA loss narrowed from $(1.17)M in Q4 to $(0.46)M in Q1, evidencing operating leverage despite small scale .
Management reiterated its target to reach break-even/profitability within current operations in 2024; Q1 commentary indicated they are “on track,” supported by cost discipline and clinic growth; no formal revenue/EPS guidance provided .
Key watch items: (1) merger with NAYA progressing but contingent on financing and approvals; NAYA funding to date ~$0.91M with staged commitments; target closing extended to June 30, 2024 , and (2) Nasdaq equity deficiency notice received in April (Panel hearing June 6, 2024), elevating listing risk .

What Went Well and What Went Wrong

What Went Well

Record topline growth led by clinics: Revenue rose 353% YoY to $1.58M; clinic revenue grew 417% to $1.54M; “revenue from all clinics” (consolidated + equity method) rose 189% to $1.87M .
Operating leverage and EBITDA improvement: Adjusted EBITDA improved to $(0.46)M from $(1.75)M YoY, aided by higher clinic mix and lower total operating expenses YoY ($2.52M vs $2.65M) .
Strategic focus and execution: CEO highlighted the transformation from device to services as “starting to bear fruit” and reiterated the 2024 break-even/profitability goal on current operations .

What Went Wrong

One-time charges weighed on bottom line: Net loss was $(1.60)M; other expense included a $0.56M loss on disposal tied to the Tampa project and a $0.09M gain on lease termination .
Liquidity remains tight: Cash was $0.48M at 3/31/24; cash used in operations was $(0.26)M in Q1, indicating continued external funding needs until sustained operating cash generation .
Listing risk increased: Nasdaq notified INVO of non-compliance with stockholders’ equity requirements ($0.89M vs $2.5M minimum); delisting risk persists pending Panel decision .

Financial Results

Q1 2024 vs Q1 2023 (YoY)

Metric	Q1 2023	Q1 2024
Total Revenue ($)	$348,025	$1,576,286
Clinic Revenue ($)	$297,381	$1,537,199
Product Revenue ($)	$50,644	$39,087
Total Operating Expenses ($)	$2,654,445	$2,522,660
Net Loss ($)	$(2,550,879)	$(1,596,513)
EPS, Basic/Diluted ($)	$(4.10)	$(0.42)
Adjusted EBITDA ($)	$(1,747,831)	$(460,467)

Notes: YoY EPS improvement reflects higher revenue and share count normalization (WASO 622,507 → 3,801,877) .

Sequential Trend (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Total Revenue ($)	$974,894	$1,381,754	$1,576,286
Clinic Revenue ($)	$947,891	$1,362,938	$1,537,199
Net Loss ($)	$(1,248,440)	$(1,994,782)	$(1,596,513)
Adjusted EBITDA ($)	$(565,362)	$(1,170,499)	$(460,467)

Segment/Revenue Mix (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Clinic Revenue ($)	$947,891	$1,362,938	$1,537,199
Product Revenue ($)	$27,003	$18,816
Total Revenue ($)	$974,894	$1,381,754	$1,576,286

KPIs and Other Metrics

KPI	Q3 2023	Q4 2023	Q1 2024
Revenue from all clinics ($) (incl. equity method)	$1,352,881	$1,634,912	$1,869,513
Cash & Equivalents, period end ($)	—	—	$475,125
Cash Used in Operations ($)	—	—	$(260,557)
Total Operating Expenses ($)	$1,861,184	$2,900,000	$2,522,660

Non-GAAP: Adjusted EBITDA reconciliation provided in filings; management notes it as a supplemental performance/liquidity measure .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability target	FY 2024	Break-even/profitability within current ops in 2024	On track to reach break-even/profitability in 2024 (current ops)	Maintained
NAYA Merger End Date	2024	End date extended to Apr 30, 2024 (Second Amendment)	End date extended to Jun 30, 2024 (Third Amendment)	Extended
NAYA Funding/Interim PIPE	2024	NAYA financing ~$0.81M; interim financing structure updated to preferred shares (min $2.0M + additional)	NAYA funding ~$0.91M to-date; staged purchase schedule for remaining Series A; Phase 2 financing required pre-close	Updated
Financial guidance (revenue, margins, OpEx)	2024	None provided	None provided	Maintained

Earnings Call Themes & Trends

(No Q1 2024 earnings call transcript found; themes drawn from press release and 10-Q.)

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Path to profitability	Q3: “profitability in 2024 becomes increasingly visible” ; Q4: reiterated 2024 break-even/profitability	“On track” to break-even/profitability in 2024 (current ops)	Maintained/confident
Wisconsin Fertility (WFI) integration	Q3: partial-quarter contribution; pro forma uplift ; Q4: 4.5 months in FY23; major clinic growth driver	Clinic revenue +417% YoY; record total revenue	Positive integration
Merger with NAYA	Q3: entered definitive agreement ; Q4: conditions, ~$0.81M NAYA funding	End date extended; NAYA funding ~$0.91M; staged funding schedule	Progress with conditions
Regulatory/operations	Q3: R&D down post FDA 5‑day clearance (June 2023) ;	Continues to emphasize IVC benefits and 5‑day label	Stable
Footprint rationalization	—	Tampa project exited; $0.56M asset disposal loss; $0.09M lease termination gain	Streamlining
Listing/compliance	—	Nasdaq equity deficiency notice; hearing set	Elevated risk

Management Commentary

“We are pleased with the progress… reporting record first quarter 2024 revenue with growth of 353%… and a substantial $1.2 million improvement in our adjusted EBITDA.” – Steve Shum, CEO .
“The strategic initiatives… to capture a greater share of the total fertility cycle revenue and profit… are starting to bear fruit… on track to achieve our stated goals of reaching break-even or profitability… in 2024.” – Steve Shum, CEO .
On merger: “INVO and NAYA remain committed to completing the merger… creating a company uniquely positioned in both the fertility and oncology space.” – Steve Shum, CEO .

Q&A Highlights

No Q1 2024 earnings call transcript found in our document set; no Q&A highlights available [Search result: none found].

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 2024 EPS and revenue, but no CIQ mapping exists for INVO in the dataset; Street consensus was unavailable via S&P Global at this time (no estimates to compare against) [GetEstimates error: Missing CIQ mapping for INVO].

Key Takeaways for Investors

Clinic-led growth is compounding: three consecutive quarters of revenue acceleration post-WFI acquisition; Q1 revenue +353% YoY to $1.58M with clinic revenue +417% YoY to $1.54M .
Operating leverage emerging: adjusted EBITDA loss narrowed to $(0.46)M from $(1.75)M a year ago and from $(1.17)M in Q4; continued growth at current opex levels improves 2024 break-even feasibility .
One-time charges masked underlying progress: Tampa project exit drove a $0.56M fixed asset disposal loss offset by a $0.09M lease gain; underlying operations improved YoY .
Liquidity and listing remain the near-term swing factors: Q1-end cash $0.48M and ongoing cash burn imply continued reliance on external financing; Nasdaq equity deficiency notice adds headline and execution risk .
NAYA merger is a key catalyst but conditional: funding tranches, shareholder approvals, and Nasdaq listing requirements must be satisfied; closing deadline extended to June 30, 2024 .
Mix shift to clinics should sustain margin trajectory: “revenue from all clinics” rose to $1.87M in Q1 (incl. equity method), supporting scale and profitability targets .
No formal revenue/EPS guidance; management reaffirms 2024 break-even/profitability goal for current operations; watch sequential revenue and adjusted EBITDA to gauge path .

INVO Bioscience, Inc. (INVO)·Q1 2024 Earnings Summary