NBY - Earnings call transcript Q1 2021 | NovaBay Pharmaceuticals, Inc.

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Operator

Hello and welcome to the NovaBay Pharmaceuticals First Quarter 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jody Cain. ahead. go Please

Jody Cain

Cain today's Jody Thank for you This with in call. participating is LHA.

be actual from that Justin include laws. Chief involve Joining Chief Pharmaceuticals potential financial call results. contemplated federal its listeners outlook significant NovaBay today's the best me at are securities during materially results and means In made particular, estimate within could and would uncertainty about to and change from results this Jones, risks the any available its that for and different anticipated the impact I of comments This Executive management there of to the impact pandemic. Hall, could statements Andy the statements the Officer. information time These company's will cause is discussion. forward-looking duration Financial by is like uncertainties on COVID-XX remind COVID-XX forward-looking results and Officer on that any and based operations, of NovaBay's President meaning

like the turn list revise only of or a call filings and Commission Hall. uncertainties, statements Exchange I'd and no to law. the the May of circumstances and the of by is Justin sec.gov. risks NovaBay's Furthermore, XXXX. reflect call to except Securities obligation the live to broadcast, or that accurate NovaBay now, undertakes And information events of X, over to update at this with contains content any please conference as date as required review description For

Justin?

Justin Hall

by the to a ever high for with in growth you increase exceeded year-over-year the sales. Revenue sales from driven from counter the us. first afternoon, thank is million for This this continued Avenova over off Jody. of counter XXXX Amazon.com both Avenova.com. Good on was $X Avenova. and you, record time Thank in start over the unit joining channel everyone, momentum with and strong NovaBay

in largest the generated for XXXX. total the That's XXXX QX, by first XX% OTC offering contribution of accounted Walmart.com, The from Avenova third chains. a revenue from which Avenova time for nation's of and retail began in from of revenue up one benefited the quarter. also revenue XX% We channel quarter CVS, from

progress the We We channel. now of advertising cases. advertising our now of ocular million growth Americans further large through in market core these channel in as CVS momentum The being the our first capitalize the mortar on accelerating excellent competencies. of about significant nationwide eye one continued Avenova of exciting afflicts sales them partner. opportunity Avenova with for upon OTC top approximately OTC the is market making available campaigns Avenova with XX to as dry building our stores is and our by and it's digital bacteria brick XX% Driving are accounting priority. opportunity have for plan shelves to on chronic online is

with messages new marketing digital focused on resonate sophistication specific approach customer our data that programs. of Our and them. developed will heightened This to newly segments with combined level with messaging growing creative customer base advertising driven a target are with campaigns

real direct we will maximizing costs, acquisition advertising return platforms our customer campaign such as multiple and be while time rates ad through and through digital on marketing Our click monitored as spend. performance across conversion metrics, our

that that product visibility revenue feature subscribe the future main our favorable customer numerous our is customers and the both growing of evidenced and base We've product. dry growing While to eye new on and not sales. Avenova to we this already loyalty plan Building number are for our compress onto oils compress in months. signing is reoccurring and provides full the relieve a dry customer up save coming natural Avenova.com. and on on eye Amazon.com launched customer eye focus, to loyal of and is following with back two be suite Amazon.com eye nurturing and offered clear warm This The eye mass granted we'll used repeat base when Avenova products helps leverage provides this for devoted recognition discomfort. launching products. a expanding flow loyal our quite We do brand and glands users take to the oil reviews warm allows for with by

as from compress quite blepharitis, puffy Our microwave and the offering other for eyes. not in or hydrochloric heated. of product for easy bleach acid soothing your a directly no and XX use could combination XX safe sting making over effective characteristics. can products and spray to grade with use. wipes. is headaches pure completely irritate for our or and placing following of We host be or and many washable reusable and warm impurities itchy minutes. our seasonal Furthermore, compress consumers simply in a impurities to is it believe eye linked it's our used a eyes to proprietary product unique regular formulated the with standalone therapeutic even warm NovaBay's pharmaceutical We're is eye that eye, the allergies, to by strong also heating conditions our It's Avenova when

knowing lash surfaces. that ocular be addresses assured bacterial the skin the In to eye consumer rather underlying proven is product Avenova is Avenova in the customers of here the reduce United than spray the the of States. confidence only clinically dry and addition, manufactured with anti-microbial just can to bacterial the on load be symptoms. lid Avenova that provides our added cause also

Reset of earlier market launched includes pharmaceutical product Our focus into we of growing for unique sales the year balance beauty Clinical the this the year. consumer which is CelleRx the

the to we partner Clinical digital new calming, bring the media gentle, We Clinical stripping inflamed less for reset reduces traumas complexions. to Avenova. and marketing a by regeneration leading with to through barriers Reset facial skin. are sophistication healthier same and to that skin disruption the is Reset and and gentle working the compromised soothing inflamed fights biofilm disruptors with irritated removing cell our spray as to skin daily campaigns thereby clinical against cleansing did without

existing with regimen products. formulated provide daily Like eliminate full acid surveying NovaBay's our this can for clearer, is hydrochloric CelleRx any is which to expect in to Clinical In beauty media We partner healthier quarter occur developed skin. third highly launch harmful with users, is used skincare to pure be already forward following. of Our complementary discovering and year. the and microorganisms pharmaceutical our that we CelleRX program Avenova loyal a grade of a to has Reset to look media combination product

through of existing XXXX large up acquisition and products stepped for to initiatives have further in skincare the our revenue. organizations key other Our we grow in atomic order efforts markets to strategic grow

We've opportunities into the our positioned quality services strategy, to are on including We a capitalize execute support programs, operations this well-positioned capital growth XXXX. our We to endeavor. these of with to marketing advisory expertise. to extremely leveraging new sufficient on and our media firm channels believe is sales engaged well NovaBay by fund

are month trends, expect based the second sales we on XXXX. Avenova over quarter quarter, one although revenue the we current into second of Lastly, only unit to and increase

have our business. we uptick PPE the height Avenova That we revenue any during last core however expect the not said from from as will of pandemic. year year this favorable We comparable a did revenue

Now more to our the call over turn Andy review to financial I'll detail. performance in

Andy Jones

net revenue with QX which XXXX. up for revenue of was from million. We of total million Starting XXXX $X.X everyone. top in Avenova $X.X QX, afternoon, product Good results. quarter Avenova Justin. for an QX our increase line on for the $X.X sales recorded you, is million Thank

the XXXX in QX, we first OTC heard the from revenue was $X from million. Justin topped As Avenova product which channel

these due compared ago. year XX%. were Amazon that in from was ago. XXXX market reimbursement large from $X.X G&A and the field for we increasing XXXX XXXX. reduction other an to our included are from at increase were focus revenue $X.X $X.X programs. for of XXXX The marketing That's up momentum on million Margin million. sales legal quarter a digital lower house on with the improved was of This are The in alone XX% the more a increasing our of was margin. product for Avenova the first the effective by sales from team. as that OTC increased the expenses opportunities. These million with both programs $X relative and investments revenue to first That's better prior gaining $X.X a resulted expenses in than our quarter XXXX down Total fact, offset products of quarter compared cost were for insurance from operating part incurred million part look year Gross In increase the exceeded expenses first demonstrate with The $X.X period. over capitalize first for in quarter we year CelleRX sold improvement of in costs headcount increases informed XX% million sales compared were Avenova generally marketing which XXXX. lower and in as XXXX. a QX, for million for a benefit marketing $X.X primarily million Sales QX, time,

and benefit is patients dispense educate how how the can telephonic on Avenova programs. offices their financially community conference focused team extraordinary house the physician in their of medical primarily video Our and our to and affiliate qualities from outreach can about from benefit

unchanged quarter begins. of for second of at half As Avenova the same office our to were the where Operating to was $X.X per of and Operating per in we the Net and to or journey share. was $X.XX liability often physician loss share. million stockholders eliminated improve we net have million common the quarter recommended $X.X the effect the balance as substantially the $X.X million. and patient or the warrant for Net for doctor's XXXX attributable of our stockholders loss quarter first common a attributable quarter XXXX the first our of XXXX loss previously first effort XXXX XXXX sheet. as was for XXXX discussed, is halo $X.XX loss loss part

balance continue Lastly, sheet. the with our pleased of overall to we be health

the March of XXXX, with we cash debt significant of As again equivalents we and million obligations. cash ended quarter no XX and $XX.X had

to have and drive it Justin. on allowing to we out line product adoption our of well synergies back comfortably other Avenova operating We that toward turn initiatives growth will operating into that, execute path as funds to execute and XXXX With needs sufficient seek to all and XXXX, meet on profitability. plan provide CelleRX I'll us top opportunities

Justin Hall

Thanks, Andy.

the open we call several momentum your over our term past we've plans the upon near continue summarize to me let quarters. building the questions, sales achieved Before to

consumer Avenova see on to First, we're channel opportunity. growth the sales where we focusing which is direct greatest through driving the

build We foundation already have Avenova and upon the premier which lash antimicrobial spray. established a lid having to strong as

to prospect through of the availability retailer the are by through progresses. We consumer this Avenova at year as gaining have excited access large expanded we and momentum CVS this year

feature that encouraged upon analytics lifestyle campaigns will media new repeat Avenova to messaging usage and attract customized following. customers data We customer rolling loyal and be also out new to build our

customer Second, campaign various effectiveness developing evaluate for new build monitoring Avenova a targeted showing loyalty sophisticated of we're this ad To signs reaching expanding programs digital the base early and also that's to to metrics CelleRX. demographics spend. new our marketing the and optimize product. Like to in include will of upon our

our and new Third, introducing us. eye two skincare in coming licensing a complete is actively fourth, This or dry suite for of And priority we acquisition growth offerings. of be the through to ophthalmic support products continue to evaluate opportunities profitable will products. months we to

new questions. time commercial for you we're all your give our summary plans, that to in confidence sheet future order of increase value. relationships ready industry of us experienced sources that Operator, now balance organization, for shareholder attention. opportune With business and pursue is and take now improved us to thank established the to Our I revenue

Operator

you. Thank

and now today The session. We ahead. question Cohen Thalmann. question with from go answer come [Operator will will the Ladenburg begin first Please Jeffrey Instructions]

Jeffrey Cohen

Andy, and Justin are how Hey, you?

Justin Hall

Hi Jeff.

Andy Jones

Good.

Jeffrey Cohen

amount start So into estimated higher were gross which with we what the any that? margins, read fair a let's than

Andy Jones

Yes. Sure.

last Jeff then come beginning an margin bit more does including year, had non-Avenova products. So generally lower revenue little with terms of other Avenova. we a a the Those of mask from in and sales

revenue So to from bit. our us with products allowed raise less those margins

Jeffrey Cohen

Okay.

the of stable be this should a balance of that the with we large Avenova for driving the revenue expect XX level? year you would So proportion mid at

Justin Hall

Sure. Yes.

Jeffrey Cohen

Fantastic.

as you Okay. out stickiness customer far as base? What there orders recurring seeing far of as as and your are purchasing trends

Justin Hall

Yes.

long are I safe a have that not disease that is also for think for but to So use, chronic. we only is lucky that product designed a term really

to into It can we healed. on people we keep be truly So it. on eye, ever start manage is people Avenova coming and and space one great. generally is more dry unfortunately, with love expand of conditions they once that those not as it only And with it that Dry for more the back which are managed. consumer finding can love eye Avenova be

Jeffrey Cohen

Got far any as trends the space in the within geography interesting consumer it are goes seeing and you U.S.? as

Justin Hall

that pretty is Well, for tends in are out large metro so is the is areas. we congregated spread What across it what's really States. actually it interesting evenly CelleRX United to seeing all though, be

So Chicago, you the lot we're places not where so Miami, York are areas. seeing of and a in metro smaller lot are with Francisco, much of where of New San LA of kind in course, we those a

Jeffrey Cohen

or Okay and then see it what or us that of Can possibility he you quarter? another? area about that a derm maybe products. of second give more we extension online an of ocular, in the talked the flavor couple or indication Will be in whether

Justin Hall

Yes.

line. front fronts. different product So really there is the is, just we're two expanding on Avenova forward moving One

then one our about and that And acquisition lines launch looking when and product half of will months. in then through sort other so you see and the will week no launch telling another hit. see is of for that next M&A there's three with where that's product And initiative complete and you revenue product will existing in we're licensing

and process. out a Sometimes drawn it long happens sometimes fast it's

Jeffrey Cohen

matched it. about efficiency your growth as then to little for as channel lastly, otherwise talk channel can far bit as I that and direct or spot And me, think Amazon far compared channels orders? OTC repeat is the you and pricing trends Got the and a against as up? on the

Justin Hall

Yes.

channel. how to tried mantra costs our path least resistance. like dispensed that the channels even here our be customer But So we physician there's the in exactly all the the of We same. across parity price is of have

they the So customer of we'll which put want any it way in hands it. the

our like different pay on online see buttons. So site, four you'll or five

We our of but they Amazon traffic come Amazon. to through identity and to think pandemic brand through comes our nationwide that messaging growth comes it with and site use can find voice to through to if just will buy our come our site influencers. that. their ability grow to from they the most So really have somebody the of want Amazon. never really and Amazon the But our during I account do It'll and

of that outside all be of so And will Amazon.

Jeffrey Cohen

or over and Okay. trends past for provide it. could in helpful. as Thank me any would to specific you. Got weeks commentary you your that then the just far QX And over QX macro five pickups be lastly, as non-pickups general order

Justin Hall

Actually to Yes. you one? Andy this take want

Andy Jones

certainly Sure. second implementing year into pushing the little Yes. We see that's obviously expect mentioned versus we're we're a but digital channel. the to bit programs uptick of last the second marketing quarter. as quarter We an OTC new

those We some and the expect second in some see growth from to success quarter.

Jeffrey Cohen

appreciate perfect. taking I questions. the Okay, guys. And Thanks,

Justin Hall

Thanks Jeff.

Operator

ahead. the Ascendiant next And come will with Ed question go Woo Please Capital. from

Ed Woo

eyes Yes. have Congratulations on a growing buyers. you repeat question is My of Avenova condition. you Dry mentioned year-over-year. is chronic that lot a

aren't people who buying repeat the able who people customers? So are be yet pinpoint Avenova are for you your marketing, how digital to versus

Justin Hall

we now have, very focusing I a is on. It that on are something really grow to that solid we think, base Yes.

kind largest As customers. path because and Amazon I people But Amazon, to buy able mentioned remarket of before resistance tricky it for channel our on it's most directly. the them we is of to not are least with definitely when

addresses able their email them. not to are We and remarket capture to

this do our year of customer like of brand the people to is we'd main on remarket that things to sort data site So capture and our and them. tell grow one and that really story

reminder. has because really that our back it come how that And sometimes worked maintaining to now then just trend worked I to they well like generally customer own diving for that the has them. that is has that obtaining to remarketing people need surprised and to referring into them, us something little it well that we're So was information, but a

Ed Woo

Right. quarter. And scale expenses launch a of new in CelleRX in week products, one the three next third expect full then sales couple marketing next you OF next significant a the a doing mentioned increase for months, quarters? we on market and one be will significant Should couple

Andy Jones

the I think a focused those bit advertising but investing growing more I for in for as CelleRX we'll on little channels, be it'll Avenova areas. both be and we're Yes, mean those refreshed more

the we'll probably well a the little but products as bit in invest far As new as more modestly those obviously in go beginning.

Ed Woo

color the you I for luck. guys wish thanks and you. good Great, Thank

Justin Hall

All right, thanks Ed.

Andy Jones

Thank you Ed.

Operator

concludes will closing remarks. would This today's back turn now Justin for Hall over the question answer I session. to any like and to conference

Justin Hall

presenting XX July at Ladenburg mention Before that be Thalmann going to Virtual on XX. Conference held XXXX be we we'll end, and Healthcare want that's the to in I

be webcast website. our corporate you invite will which to the presentation view of we So our posted to

So us second good our progress. to updating a NovaBay. call on you the thank our and We and for we'll August day. today look when results for thank discuss joining your business in financial meantime, you interest quarter to everybody in you forward next In have

Operator

The conference attending Thank has disconnect. for today's concluded. presentation and you now now may you

NovaBay Pharmaceuticals (NBY) 9 May 212021 Q1 Earnings call transcript