Executive Summary

Q4 2024 delivered record revenue of $7.9M (+~8% YoY) with gross margin of 70.3% and Diagnostics up 109% YoY; adjusted non‑GAAP EBITDA loss narrowed to $5.4M from $6.7M in Q4 2023 .
Management emphasized sustained margin strength (third straight quarter above the 65–70% target range) and improving cash burn; adjusted operating burn was ~$4.2M vs ~$4.0M in Q3 .
No formal 2025 revenue guidance was issued; the company plans to reduce absolute OpEx in 2025 and targets cash‑flow breakeven at a ~$50M run‑rate (vs. $27.3M FY24), supported by portfolio expansion (e.g., VETIGEL distribution) and international scaling .
Stock‑related developments (NYSE American delisting and move to OTCQB) dominated the narrative; management reiterated “the stock is not the company,” citing ~$71M liquidity, no debt, and 15 consecutive quarters of record YoY Q4 revenue as support for fundamentals .

What Went Well and What Went Wrong

What Went Well
- Record quarterly revenue for the 15th straight quarter; Diagnostics grew 109% YoY in Q4 on accelerating TRUFORMA and VetGuardian adoption, while Therapeutics remained the revenue base .
- Gross margin of 70.3% (Q4) and 70.0% (FY) exceeded or met the high end of the 65–70% target, aided by manufacturing automation and mix; Q4 was the third consecutive quarter above the range .
- Management catalysts for 2025: equine portfolio push (new assays, VetGuardian equine), VETIGEL U.S. distribution, international distributor ramp and CE‑marked portfolio, and capital equipment specialists to accelerate placements .
What Went Wrong
- Continued losses: Q4 net loss of $7.2M ($0.01/share) and adjusted non‑GAAP EBITDA loss of $5.4M; FY24 net loss $47.0M, reflecting ongoing investment in assays/R&D and integration .
- Sales & marketing up 23% YoY in Q4 due to headcount/commissions; while necessary for growth, investors will watch for operating leverage as revenue scales .
- Listing status and investor sentiment: delisting to OTCQB in March and prior guidance withdrawal (Aug) overshadowed operations; management did not provide 2025 revenue guidance on the Q4 call .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$6.1	$7.0	$7.9
YoY Revenue Growth %	2%	~10%	~8%
Gross Margin %	71.0%	72.3%	70.3%
Net Income (Loss) ($USD Millions)	$(23.9)	$(6.7)	$(7.2)
Diluted EPS ($)	$(0.024)	$(0.007)	$(0.01)
Non‑GAAP EBITDA Loss ($USD Millions)	$(22.3)	$(4.8)	$(6.1)
Adjusted non‑GAAP EBITDA Loss ($USD Millions)	$(5.2)	$(4.3)	$(5.4)
Cash, Cash Equivalents & AFS Securities ($USD Millions)	$83.0	$77.8	$71.4

Segment revenue ($USD Millions):

Segment	Q2 2024	Q3 2024	Q4 2024
Therapeutic Devices (PulseVet, Assisi)	$5.7	$6.5	$7.1
Diagnostics (TRUFORMA, TRUVIEW, VetGuardian)	~$0.42	~$0.50	~$0.80

KPIs and mix:

KPI	Q2 2024	Q3 2024	Q4 2024
Capital Revenue ($M)	$1.7	$2.2	$3.3
Consumables Revenue ($M)	$4.4	$4.8	$4.6
Consumables Mix of Total	72%	68%	58%
Adjusted Operating Cash Burn ($M)	~$5.2	~$4.0	~$4.2

Vs. Wall Street consensus (S&P Global): Zomedica does not have SPGI/Capital IQ mapping in our dataset; consensus estimates were unavailable, so beat/miss vs. estimates cannot be determined. We attempted to fetch “Primary EPS Consensus Mean” and “Revenue Consensus Mean” for the most recent quarter but SPGI mapping for ZOM was not found (tool error).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$31–$35M (reiterated in early 2024)	Guidance suspended (Aug 14, 2024)	Withdrawn
Gross Margin	Ongoing	Target 65–70% range; “approach and maybe exceed 70%” for FY24	Expect “around 70%” with 65–70% range maintained	Maintained/tightened to ~70% expectation
Operating Expenses	FY 2025	n/a	Plan to reduce absolute OpEx vs. 2024	Introduced
Cash‑flow Breakeven Threshold	Multi‑year	~$50M annualized revenue	~$50M annualized revenue (unchanged)	Maintained

No dividend or tax/OI&E guidance was provided.

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
AI/Tech initiatives	Began adding AI interpretations to TRUVIEW; new ear cytology protocol; OTA updates for TRUFORMA	Continued TRUVIEW AI field testing; fastest digital microscope claims	AI reports for TRUVIEW nearing launch later this year	Improving
International expansion, regulatory	CE marks for TRUFORMA & VetGuardian; distributor adds (Leader, SIRE)	Expanded Grovet coverage; first TRUFORMA equine distributor in EU; Japan approvals in process	Entering EU and broader OUS markets; ~80% U.S./20% OUS mix currently	Improving
Manufacturing/operations	New robotic assay line in MN; GA facility expansion for 5x capacity	Robotic line live, margin efficiency emphasis	HQ move and ongoing cost optimization	Improving
Sales force/channel	Q2 capital softness from medical leaves; mitigation plans	Back to full strength; capital rebound	5 capital specialists across 5 regions supporting 38 territories	Stabilizing
Tariffs/macro	Interest rates impacted capital purchases; alternative placement models	Interest rate concerns abated somewhat; flexible models used	Watching tariffs; minimal inbound COGS exposure (~$20K if severe)	Neutral
Product performance	Diagnostics +68% YoY; PulseVet consumables +11% YoY	PulseVet capital +24%; Diagnostics +38%	Diagnostics +109% YoY; TRUFORMA/VetGuardian adoption accelerating	Improving

Management Commentary

“We posted record revenue, year over year, for the 15th straight quarter… exceptional growth within our Diagnostics segment, which increased 109% year-over-year driven by the accelerating adoption of both our TRUFORMA and VETGuardian product lines.” – CEO Larry Heaton .
“We expect… accelerated revenue growth in 2025 and beyond… we continue to be well capitalized and will opportunistically leverage the strength of our balance sheet to add compelling products.” – CEO Larry Heaton .
“We plan to reduce operating expenses in 2025 relative to 2024… This will produce operating leverage and move us closer to our goal of being cash flow positive at a run rate of $50 million.” – CEO Larry Heaton .
“Our share price is under significant pressure, yet the company is performing well… Your company is sound and is under no stress.” – CEO Larry Heaton on delisting/OTCQB move .
“We launched 5 new assays during the year… and will continue to develop new high‑volume assays to support the ongoing growth of this rapidly growing product line.” – CEO on TRUFORMA roadmap .

Q&A Highlights

2025 pipeline: 5–6 new TRUFORMA assays (canine, feline, equine), VetGuardian equine in 2025, new LOOP Lounge, VETIGEL commercial ramp .
Geographic mix: ~80% U.S./~20% OUS; OUS growth outpaced Canada; tariffs could affect new system sales but consumables recurring base is resilient .
Profitability path: Breakeven remains tied to ~$50M run‑rate; 2025 arrival viewed as aggressive but targeted .
VETIGEL economics: Likely lower gross margin than in‑house products but essentially no incremental selling expense (leverages existing sales bag) .
Go‑to‑market leverage: 5 capital equipment specialists across 5 regions support 38 AM territories; corporate accounts director added to target multi‑practice groups .

Estimates Context

We attempted to fetch S&P Global consensus for revenue and EPS via our SPGI connection, but ZOM lacked a CIQ mapping in our dataset, so consensus estimates were unavailable. Consequently, we cannot assess beat/miss vs. Wall Street estimates for Q4 2024 using S&P Global.

Key Takeaways for Investors

Momentum intact: Q4 revenue record with strong Diagnostics growth and sustained 70% gross margins points to an improving fundamental backdrop even as capital sales remain a swing factor .
Mix shift opportunity: The diagnostics installed base and new assays can compound consumables, supporting higher‑quality, more predictable revenue over time .
Operating leverage in focus: Management plans to reduce absolute OpEx in 2025; watch adjusted operating burn trajectory ($4.2M in Q4) and margin preservation as Vetigel ramps with likely lower GM but minimal incremental Opex .
International optionality: CE‑marked portfolio, new distributors, and Japan market entry efforts create incremental growth channels in 2025+ with distributor‑led cost leverage .
Capital placements vs. macro: Flexible placement/pricing models mitigate rate‑sensitive capital demand and seed future consumables; monitor conversion to owned systems .
Liquidity runway: ~$71M year‑end liquidity and no debt should comfortably fund the path toward the ~$50M run‑rate breakeven goal and selective BD .
Trading setup: Narrative catalysts include equine product launches, TRUFORMA assay additions, VetGuardian equine, international scale, and any capital markets steps toward uplisting; delisting overhang may persist near‑term but could fade with execution .

Appendix: Additional Detail

Full Year 2024: Revenue $27.3M; GM 70.0%; year‑end liquidity $71.4M; shares outstanding 979.9M .
Q4 2024 recon (non‑GAAP): Non‑GAAP EBITDA loss $(6.1)M; Adjusted non‑GAAP EBITDA loss $(5.4)M (removing pro‑forma non‑recurring items) .
Q3 2024: Revenue $7.0M; GM 72.3%; adjusted operating burn ~$4.0M .
Q2 2024: Revenue $6.1M; GM 71.0%; adjusted operating burn ~$5.2M; non‑cash impairments drove reported loss .

Zomedica Corp. (ZOM)·Q4 2024 Earnings Summary