MEDS - Earnings call transcript Q1 2022 | Scienture Holdings, Inc.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRxADE HEALTH First Quarter 2022 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 quarterly March report, Company's filed results which the includes additional operations with the information for quarter earlier ended SEC XX was of XXXX today. regarding the today call Founder, HEALTH Suren TRxADE Executive Chief Financial Chairman, Huffman, and Janet 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 the Huffman, time, this yours. the to Janet Company's Janet, At Financial Chief floor is

Janet Huffman

Thank joining to first-quarter like you, thank Operator. our results financial And you us today. XXXX to you for I'd call. conference welcome

it announcing financial website. XXXX first-quarter our release after results press the our posted market is on issued Our today, was close of

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

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

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

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

Suren Ajjarapu

the We improvement from for protective by initial platform in the revenue return release onset and to core exchange to Janet. you, the our revenue and Thank saw sales equipment continues pandemic. XXXX base pharmaceutical away COVID-XX personal the one-time traction of our driven first-quarter

as network growing we our within of exciting registered continues wallet proportional footprint relentlessly nationwide expand Our share on grow to ways large to users. new focused

customers, better pharmacy. the loyalty further retail enabling to their service them respective to their local While their end growing users

we as into seen. the an laborious process insight no drug pharmacy operational purchasing transparency engagement. are are, market we to an and cohorts who Obtaining results launch digitalizing of for like first was a of experience of those through to procurement, how pharmacy the who large walk time-inefficient are We do price. wholesalers patient you well through supplier conundrum new national payment the I walk-through journey, billion quarter, uniquely optimization as of XXXX for a and market estimated prescription together potential retail independent a more drug extremely power with would to and track a with designed to the operate nation's a independent the you selling Fair company, the we Before buying detailed and an bringing financial terms, the fair business-to-business unfavorable on incredible efficient nationwide. approximately annual in and process. as provide difficult slow XX,XXX this an create pharmacies, and and web-based the an delivery to proceeded will We provide identified which inefficiency, [Indiscernible] approximately a transfer accredited platform pharmacies market the maintain and Traditional together independent pharmaceutical Treximet. independent $XX.X pharmacies to

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

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

the We an s Our added of to our registered independent have model pharmaceutical pharmacies, to sold quarter member XXX%. has prices attention increased X% first the brand quarter quarter registered from the XXXX we increase XXX members on and reflects of increase in by administrative to quarter to a PayPal business XXXX. pass buying validating growth includes of pharmaceutical crossover XX% revenue first on processed TRxADE first metric incredible platform Similar the first of our TRxADE compared is exciting XXXX over approximately XXX to to that a sales X% the or up same seen platform. new have pharmaceutical to simple. XXX%. unit fee in on And Prime Today approximately members with compared volume. platform in of model. model. Process the experienced up generic of We've paired an the Other in the XXXX XXXX, first platform in our XX,XXX our like of garnering the over of also currently resell in quarter exciting nationwide, of growth success to plus through in XXXX. XXXX comparing quarter the orders

that We in SOSRx customer and LLC, and expand as industry. track platform. base be short-dated RF, XXXX a SoS, the otherwise medical Company our announced Health, availability February veterinarian-based we addition to facilities to the new destruction. XXXX, with to In pharmaceutical will to provide market expect into This LLC, winter continue new the plan an to is overstock subject Exchange Fiscal seed a exciting additional winter

transparent the providing for tax rate we conferences invitational, technology The manufacturers market SOSRx selling cost-effective will benefit and an brings selling such transparency, costs LD Our awareness improving process. independent manufacturers broader to address more the also be with June panel, marketplaces be for consumers. public for TRxADE goal pharmaceutical. held believe of Maxim front, buying health the Micro Virtual Conference growth on present expected proactive. our June the place XX. supply participants. and scale, provide market expanding wholesalers attending SOSRx and TRxADE radical deliver SOSRx pharmacies Growth of and investor progressive At price be the the in joint while enhancing that held and this that XXXX capital are deliver need platforms care in the We and and competition together, the market we're at of which March the the I'll efficient attended as opportunity accessibility company. to anticipates enhanced wholesalers X. through affordable In prescription continue medication X of on these potential winter more economy We to reliable

would quarter our to through of Officer, from XXXX. turn I Chief to some like first call over financial walk the key Now the strength to Janet Financial Huffman

Janet Huffman

Suren. you, Thank

million XX.X% revenues Prime. in same portraits or share. the measure, in million in X XXXX the quarter revenues Operating million discuss The XXXX or first of first results. of of first revenue diluted in of primarily quarter a decrease in per Integra non-GAAP same quarter to result last primarily compared TRxADE compared the last same TRxADE or of the in million X% last same diluted first a million the $X.X quarter the to XXXX Let platform to a X.XX the were outstanding revenue to Pharma due prime. generated quarter decreased This to decreased to first Net of quarter the the million quarter the per profit compared was $-X.X in $X.X expenses expenses X.X share Gross for and quarter quarter EBITDA, $X.X same the us quarter year. loss year. last revenue X% was in million XXXX by increase and for to is in and million financial was legal basic of Revenues $-X.X Adjusted and XX.X% to first gross $X.X and increase profit $X.X or increased due to compared basic million wages XXXX. XXXX The share year. compared outstanding quarter in of of XXXX. to in the salary X.XX X million increase Solutions

million to XXst, that, Looking as compared $X.X the initiatives, our and at with and was decrease due in salaries of for as with equivalents expenses SOSRx, of investment to XXst, cash IT XXXX. increased call and million of back remarks. March December our cash I wages our Suren for turn closing With balance venture the The new will XXXX, primarily XXXX. legal were in sheet, $X.X increased quarter cash first

Suren Ajjarapu

business Janet. partnerships focusing strategic forward you, our core our diversifying Thank new exciting we're base. to revenue on In summary, drive while

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

Operator

sir. you, Thank

One We now begin the please. [Operator will session. Instructions] question-and-answer moment,

the Howard your from please proceed Taglich comes with Halpern of with line Brothers, question first Your question.

Howard Halpern

to top-line growth see this My and segments? those on forward in Congratulations quarter, both where Integra good. is regards prime Do in results guess two the sequential the you point I TRxADE look from - offering. question occurring

Suren Ajjarapu

you, Thank Howard.

and aim released on you of all, going will volume our to metrics continues what we earnings and think a given our of number yes. first to the you is increase might our this the on we platform our more buyers and Prime.Those of continue provide TRxADE TRxADE, orders That's First we and number see forward.

So, you'll also. those release our in see metrics I of new think press

Howard Halpern

would the improve maybe to Prime gross that you're volume and And there is that customers gain my with margins a offering, profit be, traction way segment? way to there starting follow-up a in now is in

Suren Ajjarapu

shipping the to Prime, good. as bit industry are But you costs aware, some all of TRxADE is are That's inflation. are see as the by able because a you every little the higher affected

our So, the transportation to may be comment see but and fourth all to that towards that, probably we quarter, that, profit you definitely cannot probably, able anticipation gross on increasing of that. the costs, on answer how third we inflation, more quarter or I'll give behaves, economy the that's

Howard Halpern

Okay.

So, safe for is bet in the until going forward low economy? a margin now, right XXs, in mid-XXs gross normalize things

Suren Ajjarapu

Yes.

Howard Halpern

Okay. I'll into jump back queue.

Suren Ajjarapu

you. Thank

Operator

moment, [Operator please. Instruction]. One

next comes proceed Maxim Allen Klee please the Your question. line question your with from of Group, with

Allen Klee

Hi, we from the -- when going for that see us Health, how material Exchange SOSRx, contribution the so could how -- the when to be understand venture XXXX. help with expect in should we're

Suren Ajjarapu

grocery towards in that stuff wholesalers next the technology February, like or mentioned, both manufacturers beginning Sure, and we that may as educate started to thanks end a impact I see because of chains of or big not of platform, the a it's Allen. got quarter just and chain, year that. box We

technology, of So, towards adoption next for we'll end this the continue year create to the we'll the beginning or year our see of but results. probably

Allen Klee

and the same then purchasing Health organizations. And Bonum Great. group question on

Suren Ajjarapu

-- to yet And to and into the fourth-quarter. towards the key because group us. and of or may want to those that some for on they quarter, the a buy just sorry, also results see they're as continue quarter third I'm the the second jump still aware coming see through XXX% product them We to we traction the marketplace organizations. pound availability, We

Allen Klee

you Thank so Okay. much.

Suren Ajjarapu

Thank you.

Operator

center Your please of Smith next proceed question investing, with with your the comes from performance question. Robert

Unidentified Analyst

so me idea and growth Thanks you cash, afternoon. diminishing is can the my about losses with on, Good would think financing question you call. taking how give for an continuing your strategies? My first

Suren Ajjarapu

to continue the platform doing. look towards technology we operate new initiatives. Robert. that I Thanks mentioned, far support -- as we're for we Yeah, will Probably the new as as our investment our growth existing

Unidentified Analyst

decline. to continues position cash your But Yeah.

of growth you're where business losses? -- what financing for to the get strategies capital mean, So, are are that what I from? the and your running continuing going

Suren Ajjarapu

base that existing I have forward. us to going an we will sustain think capital

at capital looking this other keep avenues now, but we're not at -- we'll we're raise. any to So, time, do looking right

Operator

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

Howard Halpern

I to was queue bit. little that in one-time a when event dipped noticed there just looking I the a area revenue event or the was at Was pharma specialty happen an that And normalcy that flat because sort going back to it's been this around to in that of rebound that. time dipped cause normally it a bit. little and going and you've

Suren Ajjarapu

Yes.

date, month existing Going forward, focusing forward see the the and focus wholesaler manufacturers the don't then maybe onetime -- to our The is health pretty TRxADE but XXX% the for Prime. it flat. wholesaler, as on both it's last the highest for our the the marketplace March. also quarter over reason reduction much, I marketplaces the primarily our mentioned, pharmacy, TRxADE fourth for it's a that a for It's priority platform us. marketplace will going be with to a and But is of

Howard Halpern

you TRxADE to our platform, to around one now they little operating And that are are expenses, forward, follow-up -- able that Do going you make than with for normalize just area that focus about $.X to what talked a million the adjustment? less down bit you've or the where going that.

Suren Ajjarapu

the think and the existing I seen, effect salaries increases, sustainable we've employee increases as our to on keep inflation stuff. with salary rate

million just needs So, $X range. think that's I -- normally around

Howard Halpern

Okay, thanks.

Operator

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

Suren Ajjarapu

reach I ongoing answer you your progress Operator. forward you update we to than joining look of of growth. department, more for be you, like thank were would on happy would IR any our also and to earnings please to today. call continuing all Thank unable We If questions, assist. our to to our who out to

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

Operator

conference. today's This concludes

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

Scienture (SCNX) 10 May 222022 Q1 Earnings call transcript