MEDS - Earnings call transcript Q4 2021 | Scienture Holdings, Inc.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRxADE HEALTH's Fourth Quarter and Annual 2021 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be opened for questions. accompanying the call market release the issued press of close today. earnings this was conference at The The annual December report, Company's filed results which the includes additional operations with the information for year earlier ended SEC XX, was of XXXX, today. regarding the today call Founder, HEALTH's Suren TRxADE Executive Chief Financial Chairman Doss, and Howard is its Chief Officer. Officer, our On and Ajjarapu; website The XX days next available for replay the link. of this MEDS the call under Company's and NASDAQ webcast will be the on also website more includes industry information. Company's The supporting turn to the like call over Officer. I'd Doss, time, this the to Howard Company's At Financial Chief is Howard, the floor yours.

Howard Doss

you, joining to like Thank operator, annual call. today. and quarter fourth for thank XXXX you us welcome results conference you to and financial I'd our

close announcing quarter is results Our and annual press posted on fourth XXXX our our release market of website. today after and the financial was issued

also have We the to such release Form furnished SEC X-K. on press

factors the Company, impact hereof, operations business and outlook future the the the published of and presentation and such our press assumptions. risks, to statements have on release, XX-Q to estimate XX-K to copy in statements, webcast with a and as date call guarantee webcast, forward-looking risks, Company on quarterly of these of operations. information or Form such statements results differ including statements. statements file not from and to future risk subject to, that and forth performance obligation and webcast only our and the and of include, be on and recent required uncertainties this actual we do any cause press continued the the in These of or except Form reports Securities that and website may the most for on speak no Company Form or the that potential call release may subsequently refer and include to COVID-XX assumptions as results and on limited today's we results performance not Finally, Company's project annual for statements our made that furnished press uncertainties forward-looking Please call SEC Statements the X-K. are and by of are Commission, law. the materially assumes accompanies made but the this Exchange and on set release including statements report filed presentation those documents These the revise

financial addition should supplemental for TRxADE's addition, useful In today's results. we to measures, in call isolation are of during will from non-GAAP be not we considered measures a and and measures GAAP non-GAAP These as believe in webcast, substitute discuss which performance. or

be reconciliations for You will regarding these comparable our additional call including measures, financial of at disclosures press comparisons of earnings XXXX. all the in can the with this release. comparable period Unless results non-GAAP end stated, otherwise find GAAP results fiscal our to

During call, no Company's Suren the one question like Suren, question-and-answer more floor the to I'd the to please limit yourself yours. to Chief follow-up. Ajjarapu, At portion Officer. of time, today's one over Executive the turn is this call and than

Suren Ajjarapu

platform improvement driven the pandemic. in margin COVID-XX personal equipment protective year-end pharmaceutical return one-time onset off expected as saw We our recognized Howard. the base which TRxADE in core the the in drop you, Thank exchange revenue, XXXX, sales seeing were of initial an to XXXX, the by

proportion the relentlessly respective users, nationwide while on to better customers, share focused registered pharmacy. to grow, new wallet network of footprint within their our to Our local have enabling of service growing their retail end large to expand further exciting continues ways loyalty users them growing their and we

XXXX results fourth XX, the the of year financial walk-through operational for our Before XXXX. year-end we do a and more quarter detailed and December

business-to-business digitalizing as are pharmacy through you are in the launch a and you We the inefficiency create this patient independent who optimization I'd for how $XX.X the market Company, the identified of accredited We approximately national Prior fair pharmacies who uniquely a are new of drug. like web-based market for was walk medical or the we incredible annual TRxADE. and provide or pharmacies slow to laborious pharmacy design, insight cohorts pharmacies to and well Traditional prescription price pharmaceutical to what drug experience with a obtaining procurement, market same own and an XX,XXX together clinics, engagement. of an paying an purchasing and delivery buying clinics launch TRxADE, nation's estimated and independent drug and which efficient retail journey difficult bringing billion provide those transparent wholesalers selling suppliers together and proceeded conundrum potential the payment platform, extremely and operate opportunity, the others into we the through process to nationwide. would For are, unfavorable as independent process. transparency power these approximately independent terms, time-inefficient to as an maintain no targeted with in a

costs a and suppliers scale a Our of they radical from independent up on terms this pharmacy's transparency, with XX% certain economy a annual price a among up suppliers products. total of that reduction know the lets drug competition competing to price platform our We to drug-level payment XX% leads and receiving in pharmaceutical on purchase savings believe fair fair a often pharmacies are next-day delivery.

labor pharmacies saving a fulfilling at sales eliminating negative having distributors, of or prescription to unnecessary of platform reimbursement hundreds manually compare prices loss. a from annually the hours and Our across

the of a optimize manufacturers across distribution Company multiple single on will slow-moving In of expected pharmaceutical resell success is a enhanced that like seen in through paid platform XX,XXX alone. a directly platform. venture quarter joint sale business inventory with drugs the To model. to overstock pharmaceutical and be that to Health trade. Exchange pharmaceutical a plus approximately LLC, and growth LLC platform similar as will large members we pharmaceuticals. nationwide, with model branded pass in market of otherwise and classes the more joint XXXX, buyers members the address registered short-dated, destruction. medication XXX clinics XXXX announced to buying pharmaceuticals provide of reliable up incredible PayPal opens had pharmacies and to or SOSRx February and venture, on model. pharmaceutical we have this from XXXX, attention are generic registered garnering end in subject where our platform a date, independent the on to At revenue the pharmaceutical added X% fourth new simple need our validating TRxADE formation of SOSRx over our of X% to to public progressive anticipate their fee manufacturers SOSRx, in accessibility the supply administrative and up cost-effective for price the Our to of a

We have the we strong can of and downloads XXXX leverage network leveraged the XX.X% core pharmacy had year which approximately rate. application where registration Bonum XX,XXX success our platform patient the significant aforementioned marketplace move to in since business subsidiary, include complementary ended for technology. telehealth our approximately retail into our These competency with adjacent launch an Health, an

still significant yet However, and in rollout many generate revenues. relationships phase the of to we have our are

to the were Virtual Main Growth Event. Howard XXXX. on ended I'd proactive held Colliers Daylight of LD like investor technology presenting and will which Annual on of broader walk enhancing Healthcare Conference in Eastern at the year and through call XXXX, I'll week Maxim our to the December highlights premier the awareness Conference, company. Benzinga the quarter capital the XX conference health we be to March the p.m. attending Doss, with This at attended Global a Officer, X:XX XXrd some over market our On Micro the now financial conferences, Conference, from Wainwright Conference, Fifth Financial Investment H.C. investor and We key Time. finally, of care, Chief be front, XXXX Annual fourth full panel Investor goal four the improving turn

Howard Doss

you, Suren. Thank

results. quarter Prime. fourth $X.X due of revenue the TRxADE for to in increase in same and in and to or discuss due primarily $X.XX impairment year. to was same of platform same fourth last million recognized was revenue quarter the which last the TRxADE fourth million was goodwill XX.X% cost charge. diluted XXX% in a primarily increased $X.X The of same Let quarter increase us platform, TRxADE lower diluted $X.XX the gross fourth was XXXX to a This Net of quarter to quarter year. in of has The loss compared was to to million compared for million year, generated $X.X outstanding. profit or the revenue year. last last loss a revenues by one-time basic fourth by compared increased the in XXXX per Revenues Operating $X.XX revenues quarter or generated profit per share decrease quarter which XXXX $X.X primarily million of $X.X share due the of outstanding of XX.X% in $X.X revenue X.X% compared of the or in XXXX and Gross expenses were to $X.X of to quarter the million XXXX basic quarter million sales. million

to write-down As one-time in same PPE compared negative a financial negative last EBITDA, the decreased a $X,XXX,XXX to the items a of same year. to last impairment $X.X $X.X of a inventory compared quarter non-GAAP million result of Adjusted of measure, year. goodwill $XXX,XXX and loss million quarter

lower XX.X% the XXXX. XXXX. The to discuss period decreased Pharma margins the profit percentage primarily to to in now compared million XX% in generated gross to million million Revenues subsidiary, for fiscal results. was to or Integra by platform decrease decreased $X.X revenues with our last protective Gross in personal same the us to relating of from revenue in compared to XXXX for or attributable higher revenue XXXX revenues revenue year. XX% profit XXXX COVID-XX equipment of compared initiatives in million wholly a were or million owned cost associated our The $X.X last which pandemic outstanding year. $X.XX million IT $X.X year increase TRxADE was per $X.X sales the and fiscal in Alliance Adjusted Let XX.X% million share Bonum was companies. revenue, due million $XX.X the XXXX Solutions, for expenses $XX.X ended XXXX ended to XXXX. This last a was Operating million or on primarily investment diluted year an $X.X year due the negative $X.X in positive of to $X.XX and to which and loss $X.X is Net and Pharma share million for outstanding in Health has increase basic diluted compared $X.X in year. compared a inventory the loss sales. per XXXX EBITDA increase was basic to

Health Bonum million XX, December due back XXXX. million of Alliance Looking XX, and The at compared on for XXXX, our investment. call comments. equivalents as to IT in that, initiatives to cash cash with $X.X inventory I was of closing as With December $X.X decrease the balance will and mainly and sheet, were our cash Pharma loss a with turn Suren

Suren Ajjarapu

summary, our Thank we're exciting In focusing business. you, on core drive to forward strategies Howard.

think holds I what will the operational building an building all I it turn incredible we execution over health to Operator? to stakeholders. session. value are long-term the begin of forward I seeing our we compelling to care operator value for question-and-answer look rapid for sustainable proposition ecosystem fellow pace an shareholders. of exciting that, future the continue creating as With

Operator

this with Our Please first comes your session. Allen with proceed At a Instructions] question. conducting we you. Thank be Klee from [Operator time, will Group. question-and-answer Maxim question

Allen Klee

what of more you about rolling timing a how terms pharmaceutical little opportunity talk of about new is? the joint your this And you about how think in until venture you the out? think Could --

Suren Ajjarapu

Thank Allen. Good Sure, afternoon. you.

Rx, or chain products compliance, billion to tools and reached that sets. innovative marketplace $XXX.X sales of SOSRx like become negotiation XXXX improve manufacturers pharmacies are that pricing grocery chain offers pharmacies generic have a offers product look off-contract market and and alone. in proprietary sell price bulk. and marketplace strict a percentage well channel an overstock is become in state at slow platform transparency pharmaceuticals total alternative to to drug these U.S. lower national regulatory This you to As substantially algorithms moving if time over almost as an short-dated the The off-contract. distributors

the question, on independent answer your while to through We TRxADE supplying way in this chains, platform just to still of big all XXXX this the So focuses joint are the pharmacies. how long. started our we venture February expand the

Allen Klee

on is, my about us give then question And is any there XXXX? thinking can you commentary how you're follow-up

Suren Ajjarapu

pass that through generic. buying price price initiatives manufacturers is X% Allen, growth a projected purchase as up administrative that played all pharmaceuticals new a give because are you've the seen unable with still our you our -- in as the on of and we're and the we're we phase, TRxADE in to charge platform, to for the numbers at XX% fee whereas

these have started So, most initiatives recently.

both well fast as see place. technology to take SOSRx TRxADE platforms, how have will this we So, as

give the to So, that's the to unable platforms. why projections continues reason we the are grow both

Operator

Our Please proceed from Halpern comes with Taglich question. next with question Howard Brothers. your

Howard Halpern

chain Could for between a bit of pattern you? you supply a it changed products? generics and more a has little branded bit the to maybe give on a how little normal Has view returned

Suren Ajjarapu

sales impact China generic. it. our it's and I'll take that We on from as war on, That's products come -- come some a at can the let was has this also. you branded chain of generic still platform going give an more in India of stab more Howard I'll or whether into see is a reason events the that it, pharmaceuticals the primarily supply first some on the year or Europe rolling see you the everybody understand in-depth

it's look sales And Of see money you of the make generic on the more percentage through and you the we reason at course, that's numbers, that, the less but our that fall we like on see if branded. some quarters. coming and the to as think Howard, in to you -- going second anything? up the want pick as do third to back add it's normalcy I coming quarters second

Howard Doss

Yes. would Howard, I with Suren. No, concur

to are generics view wholesalers they're which see well, on right it their that starting just of the money make make where little our as they think better telling bit I we and platform. is now like us supply the a

quite yet. not that's think more there it's becoming normalized, although we So,

Howard Halpern

and will follow-up would my where you about be. first? that purchasing And progressing? talk segment little And into Will Integra that flow organization bit the the a Could how revenue group is Okay. that into? be

Suren Ajjarapu

it's more and to bring to platform. on and the coming to GPOs come our we Integra pharmacies their platform more platform GPO, reason on is the side. still the Yes, products not side, The on completely increased in our buy to through to

distinguish So don't from we there.

Operator

a Maxim is follow-up question. next proceed Our Please Klee your with question Group. with from Allen

Allen Klee

For a kind pickup increase I the the going about your thinking be know adoption. early little it's of telemedicine very will about talk efforts, strategies you could you're how what your forward? to and

Suren Ajjarapu

which if XXXX, in mean and brought so Winn-Dixie, look markets. in gas picking big at Yes, independent I as Coborn’s, merchandize but at you so forth. our yet big if And you -- pharmacies we look last the the Allen, chains has say along exactly in Berkshire launched and like in and approximately grocery the on signed the with we’re it’s we not a to wholesaler, XXX momentum added wholesaler groceries and so said. quarter, continuously and But you there up the Hathaway XXXX

downloads of XX% we them have So into XX,XXX around converted I if patient at, we as look and approximately registrations. the mentioned,

Allen Klee

it penetration you total -- this these Could my a amount year that? we or maybe could couple you them from years would follow-up, us think and Are a should now, of that of the when you’re reasonable customers tell but how theoretical maybe be range up that a is customers? be about rate think penetrate of could how could you finally scaled of of a

Suren Ajjarapu

next on that. that that XX% that’s to per can are clarity have are even Winn-Dixie almost four million the and we Sure. the of Berkshire convert part give on million if $XX Indirectly we month, can and XX,XXX that members. I to so the but a potential the subscription as visibility what documents can of paying million top XX serving it’s on per patients a patients I’m that, I’ll plus XX I our don’t of have five there grow like have where you years, on out

Allen Klee

ask to else holding be, since not Great. Since going anybody might question another there I'm think I try up. I'm to

were quarter think operating better you revenue? Your expenses, to and your about like have relative expenses things. plans like you this didn't one-time How expenses grow do to

Suren Ajjarapu

I’ll and ask take to I’ll a first at then it stab Howard join.

standardized. we these keep As seen the think, relatively you’ve I margin increased, expenses I mentioned, gross

it’s to more. up per share wallet per month. where Now, more platform pick the market and That’s has

more an you anything? more more going our same increase So network to an try do want expense. through Howard, with product with the and we more platform existing and margin to member add kind so see volume of the

Howard Doss

Yes.

I Allen. think those are the key there, points

stabilized the it's those at kind of levels a on just expenses the them coming really then monthly keep relative is revenue whether on been basis. now think have a to I we them And or change decision how to want in.

Allen Klee

And question you a answered GPOs. your about

I the timing it be And when if wasn't provide up. sure could Your you're very have a like about them seemed thinking understood on could quite I scales operating. you of of some in opportunity that color your GPOs terms getting answer that? how large

Suren Ajjarapu

So a yet quarters few the see on the ago. concept just GPO. that We we've launched to results Allen, still full-blown

going the for go So to we'll elaborate and to R&D give able second you quarter, be another a mode that we're continue more to through towards answer quarter.

Allen Klee

independent question. facing today maybe last about Okay. ago? they're outlook you feeling And the they're the a now? challenges how maybe to Great. relative talk pharmacies, year And are they are When biggest saying a what your versus demand

Suren Ajjarapu

Sure.

As you on forth. through to are also boxes spend the on chain saw and companies the from squeeze the the the fees and and That's platform reason our pinch so supply more we our and our platform. trying insurance allow to in so DIR seeing, big

my into our coming chain. another next other most are to so chain walking launched and of and addition we patient that, these on the the that And prescription independence that so -- want a in need, that's the has stores, independents our least opportunity. seen then through at opportunities that's so Health sustain In in they are We that, know Those so into to so Bonum I telehealth the Health. they as in empower offer you've the the prescriptions the forth. business are the the that's in we've into Telehealth that can their patients, where time, walking the our can Bonum you aware, prescriptions of box telemeds telehealth walk to could independent run. see these can up the box can Through long roads those

Operator

follow-up Our Please with next proceed question. question Brothers. with Howard is from Halpern Taglich your a

Howard Halpern

ones quick you. two for Just

many the of operate you pharma, specialty to how able terms in? In are states

Suren Ajjarapu

many of have head can detail. we now, right we have of not you XX,XXX the have. segregated, how number, But more top out but probably I don't That on give my we

Howard Halpern

more right? country, than though, the It's half

Suren Ajjarapu

Yes.

look total have members where of have independent is combined that are we after plus the this into you only our on member XX,XXX, a going particular XX,XXX almost around at XX,XXX like out have go If plus, clinics my with which pharmacies platform. network to expanded the -- or can XX,XXX another XX,XXX we members we on we and I

Howard Halpern

Okay. that revenue Prime, how in quarter fourth And one are course, or much how or the acceptance is is acceptance revenue? seeing? your TRxADE Is good the Integra. segment? flowing successful Integra very the a had you through you And Of final customer consumer that

Suren Ajjarapu

absolutely. nascent is Pharma, to Integra we're flowing stage. at the revenue but still The Yes, a

substantial haven't a in even model. result seen that We even

at you revenues. than through it's our prime So the of -- look only is line it, if the not revenue top even less XX% TRxADE

that model at So product to growing we least see had that see or substantially.

Operator

the we gentlemen, closing remarks. end turn would and and question-and-answer I session, reached call the back of Ajjarapu to to for Suren have Mr. like the Ladies

Suren Ajjarapu

you our to more for call. of ongoing unable look like e-mail out conference be also -- growth. progress please would any to continuing department ir@trxade.com. earnings questions, I'd we're assist. at all on reach operator. answer than thank to IR to you, joining your We to Company The our our update and you If Thank to call happy forward

the which of information the our and for the be filed progress, For that of joined will on the regarding information in everyone. call non-GAAP you, on any next the we website may after reconciliation can who that be disclosures more of financial this replay webcast you under and available remember close call Company's link. the the today. days Thank this market found press including NASDAQ:MEDS webcast, of a in release, have XX a And financial call

Operator

This concludes conference. today's

all You may at this your participation. you for lines your time. disconnect Thank

Scienture (SCNX) 29 Mar 222021 Q4 Earnings call transcript