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PetVivo Holdings, Inc. (PETV)·Q1 2024 Earnings Summary

Executive Summary

  • Revenue doubled year over year to $0.117M, driven by initial distributor sales to MWI and higher direct clinic volume; however operating loss widened due to elevated G&A and sales/marketing investment .
  • No formal financial guidance was issued for Q1; management emphasized building momentum via clinical studies and expanding distribution/clinic penetration (Spryng used by “over 450 veterinarian clinics in 47 states”) .
  • Liquidity and working capital remain tight (cash $0.219M; working capital deficit $0.449M), with subsequent capital raises post-quarter to fund operations and sales expansion .
  • Estimates context: S&P Global Wall Street consensus for Q1 FY2024 revenue/EPS was unavailable; result vs estimates cannot be determined.

What Went Well and What Went Wrong

What Went Well

  • Revenue growth: Q1 revenue increased to $0.117M from $0.058M, supported by distributor sales to MWI ($0.034M) and clinics ($0.083M), evidencing early channel traction .
  • Distribution and clinic adoption: “Spryng™ is currently used by over 450 veterinarian clinics in 47 states in the United States” (CEO) .
  • Post-quarter financing to support operations and growth: raised an additional $2.325M (convertible notes $0.55M; registered direct $1.775M) .

What Went Wrong

  • Losses widened: Operating loss was $(2.894)M vs $(1.966)M YoY; net loss per share worsened to $(0.25) vs $(0.20), reflecting higher G&A and sales/marketing to launch Spryng .
  • Gross margin still nascent: Gross profit $0.035M; margin ~29.8% vs ~8.9% last year, but scale remains limited and cannot absorb OpEx burden .
  • Liquidity constraints and going concern: cash $0.219M, working capital deficit $(0.449)M, and prior-year auditor going concern opinion; near-term funding reliance persists .

Financial Results

Year-over-Year Comparison (Q1 FY2024 vs Q1 FY2023)

MetricQ1 FY2023 (older)Q1 FY2024 (newer)
Revenue ($USD Millions)$0.058 $0.117
Gross Profit ($USD Millions)$0.005 $0.035
Gross Margin (%)8.9% (derived from $0.005/$0.058) 29.8% (derived from $0.035/$0.117)
Operating Loss ($USD Millions)$(1.966) $(2.894)
Net Loss ($USD Millions)$(1.965) $(2.894)
Net Loss Per Share (Basic & Diluted) ($)$(0.20) $(0.25)
Weighted Avg Shares (Millions)9.99 11.66

Notes:

  • Estimates (consensus revenue/EPS) for Q1 FY2024 not available via S&P Global; comparisons to street not possible.

Sequential Context Around Q1

MetricQ3 FY2023 (older)Q1 FY2024 (current)Q2 FY2024 (newer)
Revenue ($USD Millions)$0.510 $0.117 $0.207
Gross Profit ($USD Millions)$0.286 $0.035 $0.066
Operating Loss ($USD Millions)$(2.319) $(2.894) $(2.944)
Net Loss ($USD Millions)$(2.312) $(2.894) $(3.661)

Notes:

  • Q4 FY2023 quarter-specific release not found; the company reported full-year FY2023 rather than standalone Q4 quarterly detail –.

Revenue Mix (Channels)

PeriodDistributor MWI ($USD)Distributor Covetrus ($USD)Clinics ($USD)Total Revenue ($USD)
Q1 FY2024$33,790 N/A$83,393 $117,183
Q1 FY2023N/AN/A$58,174 $58,174

Balance Sheet Snapshot (Liquidity)

MetricMar 31, 2023 (older)Jun 30, 2023 (Q1 FY2024) (newer)
Cash & Cash Equivalents ($USD)$475,314 $218,978
Accounts Receivable ($USD)$86,689 $47,108
Inventory ($USD)$370,283 $406,030
Working Capital ($USD)$(29,700) $(448,561)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial GuidanceQ1 FY2024None disclosed –None disclosed –Maintained

Notes:

  • Q1 materials focused on operational momentum and clinical timelines rather than quantitative financial outlook –.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 FY2024)Trend
Distribution strategyFY2023 highlighted buildout with MWI; focus on trade shows and awareness –Early MWI shipments; majority sales still equine; plan to push small animal as clinical data arrives Improving channel foundation; small animal ramp pending clinical data
Clinical data (canine OA/CCI)Preliminary CCI results in FY2023; expectation of final data in Q2 FY2024 Expect 3 small-animal studies publish in 3–4 months; Ethos final CCI presentation in Oct 2023 Accumulating evidence pipeline; near-term catalysts
KOL endorsements & educationFY2023 conferences and presentations cited Dr. Tammi Grubb peer-reviewed article positioning Spryng as frontline option; conference speakers boosting awareness –Strengthening KOL momentum; positive reception –
Small animal strategyFY2023: equine-heavy sales; building toward small animal with data Intend to shift efforts to small animal clinics post data; social media consumer pull –Transition underway; adoption curve described –
Liquidity/fundingFY2023 showed limited cash; raised ~$2.094M post-FY23 –Raised $2.1M in April; $2.325M subsequent to Q1 –Ongoing reliance on equity/debt raises –
Human trialsNot a near-term focus; contemplated structure via subsidiary to avoid parent dilution Restated approach: funding via subsidiary; large OA market noted Exploratory; no imminent impact

Management Commentary

  • “We are focused on building momentum in our business… Spryng™ is currently used by over 450 veterinarian clinics in 47 states in the United States” — John Lai, CEO .
  • “We anticipate that 3 of our small animal clinical studies will publish within the next 3 to 4 months… [Ethos] final results… at the American College of Veterinary Surgeons Conference in October 2023” — John Dolan .
  • “Still the majority of our sales, around 90% are in the equine space… with this data… it will open up the avenue… for the small animal clinics” — John Lai .
  • “Spryng… should be looked at as first use product… and a good choice as an alternative for dogs that cannot take NSAIDs” — summary of Dr. Tammi Grubb peer-reviewed article as cited by management –.

Q&A Highlights

  • Clarification on small-animal timing: Doctors can buy for dogs/cats now; management expects clinical presentations (Sep–Oct) to catalyze adoption .
  • NSAIDs explained to investors; positioning Spryng as potential frontline or adjunct therapy where NSAIDs are contraindicated or reduced post-injection .
  • Human trial pathway: pursue via subsidiary to ring-fence funding and avoid parent dilution; notes on OA market size context (management commentary) .

Estimates Context

  • Wall Street consensus estimates via S&P Global for Q1 FY2024 revenue and EPS were unavailable; as such, we cannot assess a beat/miss versus consensus. Where estimates are unavailable, portfolio managers should rely on document-cited results and management commentary until consensus forms or access is restored.

Key Takeaways for Investors

  • Early distributor and clinic traction is visible but scale remains small; sustained revenue growth depends on small-animal adoption post clinical publications and KOL amplification .
  • Gross margin improved YoY, yet absolute gross profit is insufficient to offset elevated OpEx; profitability requires materially higher volume or OpEx discipline .
  • Liquidity is constrained with a working capital deficit; ongoing capital raises mitigate near-term risk but introduce dilution; monitor funding cadence and terms .
  • Clinical data and peer-reviewed endorsements represent the central near-term catalysts for sales acceleration, particularly in small animals; track Ethos ACVS presentation and additional study disclosures .
  • Distribution coverage (MWI) is established; broader uptake among territory managers and clinic education is key to progressing beyond equine into canine/feline markets .
  • Sequential revenue around Q1 is below Q3 FY2023 levels; watch Q2/Q3 FY2024 trends for signs of sustained inflection as Covetrus distribution is added later (context from subsequent quarter) –.
  • For trading, the narrative hinges on clinical validation and adoption milestones rather than near-term financial beats; absence of guidance and estimates complicates expectations—position sizing should reflect funding dependence and execution risk – –.