NBY - Earnings call transcript Q2 2021 | NovaBay Pharmaceuticals, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the NovaBay Pharmaceuticals Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Jody Cain. Please go ahead.

Jody Cain

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

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

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

Justin?

Justin Hall

unit by afternoon, before. today are to Highly reporting Good than people ever high thank us. quarterly using gratifying as more you, for this everyone, you and sales, Avenova Jody. call joining record begin Thank

sales, revenue by channel Our record the driven consecutive fourth Avenova was DTC QX quarter. and financial record unit for the in performance

quarter largest of continues records in complemented during consistently online be one our by growing since year In height this pandemic, our the have source own in to of inception XXXX. last the Amazon broken we sales through of the channel exception fact, with its sales, website.

our in electronic increasing to fresh marketing. with spend. and tracking advertising best, accelerate now Our of We considerable across time sales on multiple adjustments marketing consistently messaging techniques in return for to real digital allows ever metrics. This sophistication quick platforms ad performance reflected placements leverage what's competency DTC launch that include maximize monitoring is and campaigns our working

to is key loyalty DTC channel to have creating the coming improve stream are off, and efforts a Our growth number repeat base our this of see as and business. users of both for are loyal time DTC potential Expanding expand We we our continue the brand customer as avenova.com. base. amazon.com feature our we on very first save Avenova and were channel and paying sales our Avenova. customer and a to of highest rate because subscribe growing know reliable users who revenue enjoys utilizing high strong from

and the Avenova's who our know also ratings We our X,XXX product Verified of at with more Amazon reviews Avenova written this and a that access CVS tried Avenova have only than shelves our the from lives. satisfaction by I've XX% honest also our announce has We purchasers required CVS in that CVS's as; on has by reviewed thing unsolicited worked. years the are recently is product the come such stars say customer extremely half Amazon. that and to ever stores reviews praise especially contributions of our DTC channel in high, both online with people's above. with five are truly this of else from evidenced rewarding full of star dry product suffered with impact available as literally eye is stores wherever making I've since they positive customers These XX% product to four and the can as nationwide. is It's and rating expanded market. have because on to Other in by year. earlier on has been exciting that walmart.com for XX,XXX the comments everything customer now

We are launching the brand on also products care strong complementary by in channel. Avenova the DTC capitalizing eye

close is So handheld the eye for home portable, at Warm specifically illuminated magnification the visual resolution both at ancillary mirror far magnification, and new and mirror. to products this of have surrounding Avenova meant and and by and featuring use look a of check support eye Avenova of examination on the The effectiveness customers area. year, Among their XX to Compress lightweight customers. is its we've check returning are enables Eye the an added check lids These eye our times eye uses, up the and eye designed lashes.

launch Our to the slated lubricating Avenova drops still eye QX. at are beginning of

our While largest our our pharmacy channel with our on our continue with to pharmacy ImprimisRx. prescription on partnership sales increased grow ophthalmic We product. RX announced have the channel we through continued nation's to the only recently focus focus promising DTC through highly channel,

commercializing experience use are products different Our their drugs better specialists its mechanisms have ophthalmic use Avenova These patients complementary I firmly and highly eye lots action, customer who to launched quality new has complementary. outcomes together. is partner Avenova established both had base completely newly believe clinical nationwide. of of products two to care of high success if in they XXXXs prescription Klarity-C. drop cyclosporine will of eye Klarity-C that but

almost were they two used if be were separately, Although, designed as created to the it's products together.

surgery of cataract the United surgeries involved X is in year. the in approximately each of and properties as ImprimisRx surgical pre one and portfolio ideal the antibacterial with procedures. for it their their significant make In anti-microbial post-LASIK Avenova, cataract consists addition and surgery U.S. opens This Avenova's a hundreds cataract performed XX% for opportunity to in used eye procedures procedures. million of market procedure ophthalmic number all about in States surgical products drops, is

partnership quality partner The ImprimisRx broad this reach. with have is in huge. material sales fourth So quarter. new potential And already a the excited expect the to force we Avenova is and market impact such promoting formulation we're to a high continued lash from see launch products for one physician lid spray acid the NovaBay the dry foundation first eye it number a and recommended hypochlorous and large was Avenova's to into made growth. provides the antimicrobial a market. has

We assertion by our formulation. that to our pharmaceutical continue is to stand grade best-in-class due Avenova patented

and and to product pure have hypochlorous other as market can tested find the Avenova. found every on lid be We lash has no formulation been acid we as

to load on surfaces, be It's for bacterial the As eye the dry thus we said underlying ocular the safe completely the cause lead anti-microbial rather clinically and reduce is addressing bacterial skin proven symptoms. times, use. many lash regular only just spray Avenova of than to

Reset. of Avenova Clinical launched this with product grade real tracking. sophistication up recently campaigns creative Turning our new We very truly the product time now opens same digital a aimed as reset at messaging high have category for pharmaceutical for that campaigns to advertising campaigns These level exciting accelerating CelleRx skincare. Clinical sales. a with is

exceedingly to CelleRx Our layer product disrupting spray realizing repetitively the scrub, is researchers the this facial wash CelleRx the glowing to dangerous of skin. important in keeping of balance. needing a and are turnover the oil gentle, have Increasingly, addresses balance idea stripping barriers to healthy. harsh use calming and biofilm cell the to that answer is skin. removes that to healthy biofilm without soothing by effectively the lipids and it ingredients is skin's

about wholly skincare, requires a education adoption to As approach new some its benefits.

features users. with the messaging with a from a a new in skincare that diversified and and offering. market. ophthalmic for we this as CelleRx skincare priority actual find complementary actively by of digital of through broaden media campaigns in important revenue Avenova the our look strategic loyalty reaching and defining product value to Avenova, focused build like are product market, daily us routine much large products. competencies negotiate relationships is Like product. This growing on to Our deep nondrying a are NovaBay, shareholder all competencies testimonials level opportunities with profitability These provides customer also top cleansing as high we in benefits the role we natural in CelleRx does portfolio lifestyle

opportunities our know-how our are by to leveraging marketing on our expertise. and capitalize We attractive positioned administrative sales channels,

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

Andy Jones

Justin everybody. afternoon good you, and Thank

product XX% we the which versus up with start top-line the for net million QX with million the was $X.X masks included sales. sales That's $X quarter. me Let quarter, million, Avenova second of for sales results. revenue prior total in the $X.X quarter our XXXX total reported million. year, of $X.X KNXX XXXX of In

able PPE much very supply the early year. are the to that last proud days we during We of were pandemic needed

by up driven narrowed. have sales Avenova the we XXXX sales from Avenova prior that in do was anticipate QX, such in record shortages However, future revenue OTC now not The increase $X.X million for any supply year. XXX% a

of a year, since remarkable $X.X XX% was mainly period. the mentioned, this quarter with quarter of Justin XXXX, As KNXX improvement due the trend Total for for million the XXXX the the OTC lower quarter XX%. the in record $X.X second prior of growth quarterly prior the a the second margin is in from were considerably of million year year. compares of lack sales second That's we from Gross and the margin product. of launched up continuation to of expenses sales operating masks that with this

both The continue sales XXXX. reduction million QX, expense in and higher relatively for offset in periods. opportunities. we as were XXXX. with for increase expenses Sales million million spending compares on these were $X.X and headcount comparing Specifically QX, marketing this The that million when sales due programs increase G&A capitalize with the expenses field Avenova a flat to by XXXX primarily look $X.X part for marketing was was on of QX, year for $X.X in and market CelleRx to to marketing $X.X

emphasis are was in excited channels million. our warrant sales physician loss value cost of of Non-cash in-house $X.X OTC We team. partnership fair also net ImprimisRx. effective We're on the second market liabilities that opportunity the the expand our an prescription of to with XXXX the as on includes focused about and part through for dispense market marketing quarter

in briefly of last You This warrant the $X.X Net last expense the this a our might eliminated was or loss loss from quarter of in margin balance for Total $X.X year. prior elimination comparable for Gross quarter. million, second to represents which revenue sheet million million of the the our results and we $X.XX $X.XX first and improved non-recurring. is to product margin second which year, the share expense in as our sales now there underlying $X a part masks compared $X.X improvement with share. turning improve months year's second reflects this XXXX. XX% over $X.X of months six year, net warrants of to year-to-date was of our included six the recall half that $X.X million therefore from was effort million the higher no sales XXXX. liability an million XXXX and XXXX And a XXXX in the last improvement Avenova increase or for that of year, XX% for the KNXX revenue XX% months were six

improvement sales again Avenova in the no this year. sales mask higher to margin due With lower and

expenses the and between marketing $X.X share. was all of loss per $X.X six expenses or Net in by relatively the for of marketing expenses first included compared for with R&D a the and non-cash For is and the Avenova first the of which modestly digital an of declined CelleRx. million share, six an months This for XXXX. six increase to the or XXXX improvement largely months investment aligned sales XX%, loss million. for the first due XXXX warranty months years first $X.XX $X.XX XXXX, in the of of million G&A were $X.X loss per from months liability net six increased

XXXX, as XX, sheet equivalents million. Lastly, no And our cash and debt strong remains balance we had obligations. significant of cash $XX.X with of June

back meet adoption XXXX continue Avenova We with drive to of it that, all Justin. and sufficient beyond to initiatives to turn And execute needs into have CelleRx. I'll XXXX, and operating comfortably to planned on funds to us well allowing

Justin Hall

Thanks, Andy.

why excited growth prospects future for we're Let profitability. and the me about summarize and NovaBay

customer launched First, we our marketing products expanding ancillary campaigns Avenova year base. sales in order to fresh earlier digital in accelerate this DTC by

in metrics new monitor sales. turn to programs producing the sophisticated evaluate as reaching marketing which This unit targeted effectiveness various spend. us optimize evidenced time, ad in digital and making real quarter-by-quarter demographics in to consistent results are our Our us We allows increases in by allows adjustments.

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

nearly of before ever the consumers than Avenova nationwide. our shelves Secondly, more product on of all to half have stores with access CVS

track new prescription ImprimisRx, which channel a ophthalmic Third, our record success we're in with prescription partnership products. has opportunities opening up of the promoting through

Avenova In in plan line actively symptoms. in dispensed The pre their MGD profitable blepharitis, for prescription addition eye surgery. use be to to new products. force of the already begin negotiating eye for ophthalmic LASIK are Fourth, is a licensing dry of opportunities promoting our space Avenova care products will promoting for ImprimisRx to physician cataract offered skincare and we support with and acquisition patients other ophthalmic for and with finally, in post-surgical And licensed marketing sales other of products tandem that growth or and we through channel. procedures

to the diversify us operator, give excited these markets, the new with that commercial presence for your confidence thank established us is to ready now that transactions. are in With we're of these strategic profitability Our I opportune revenue. addition balance strong We're future grow and on our for sheet now focus products the attention questions. experienced pursue take time and that you to organization

Operator

[Operator Instructions]

Justin Hall

While you presenting we're H.C. XX. posted September the at invite the like XXth We of view first be website which the September being corporate to I'd waiting webcast beginning be we'll Global Conference the our for presentation through to Investment held Wainwright mention the that XXth. our to of at will question,

ready we're the Okay, question. for operator, first

Operator

Jeffrey Our ahead. Thalmann. with first from question comes Please today go Cohen Ladenburg

Unidentified Analyst

this Justin Thank is taking on Hi questions. the you Daphne and for Andy, Jeff. for actually

us a does working? Harrow/ImprimisRx. that recognition providing revenue wanted discount and or it more you quantify are they Can maybe for work just First, with you, how that with I'll - with opportunity for bit that providing them start are that collaboration you you how a is to

Justin Hall

the to during tried recently to market the I total started today. opportunity have so Yes, it. They call allude just

to going So call with management our a set forward. we the monthly demand up have gauge

this is hard number in quantify beneficial different to So but is, what a of ways. opportunity that

even all We XX You had We force And nationwide local sales the their fulfillment. know, in ImprimisRx. prior pharmacy a without ship for didn't the it. to prescription us just had that that on have Avenova, pharmacies network partner a our needed promoting to did side, ability Avenova states. that of really we

think more say I I to use hands more real to I availability of is with So - we and streamlining ImprimisRx - opportunities One in with much is pre end the the because of sort very them. patients, two case. going product think like company put a quantify much cheaply operational in hard high have easily. the the post-surgical it's and

large largest so is space And incredibly and the they're in that like I the player an mentioned ophthalmic opportunity, there.

part to pitch. our now are see a also of a through And do is poised can XX their growth we but of and said in prescriptions think people, over lot I this, publicly be they XXX,XXX channel. that grab quarterly, will and And and they space I it. And they of of that sales in just of that's do - XX that, to have own think force even if Avenova so, so promotion sales XX% they

Unidentified Analyst

color QX? Thank And changed you to know, then strategies provide Perhaps, running that a are marketing lastly, couple that a new and information. there? I'll and additional remind I'm I be actual couple much how about trends you months, weeks terms switch great. over you recognizing and stickiness? of my lag of or last hoping could questions so can you campaign then, between quickly. they bit just since can then your customers to changed to in us about customer customers? quarter, additional more a messaging bit That's it at noticing you any Has the - so an just us all talk also And us marketing you revenue. your a between Could how repeat for

Justin Hall

platform that those search some and we that as Chat, to so our newer engine the like are brand as Yes, like platform, Google on or both social quickly of YouTube. messaging or ones that the our we're videos or to marketing be are educational into, doing constantly not expanding whether and a media on ability a mention and Instagram changing and graphic, TikTok well campaigns, pivot

find all One actually changing useful but think always time. I change thing - those constantly front that in with message, very So we is we returning and the of customers that, being them.

are matter them sort we love they of So, in but of and ways. a Avenova, that, where reminding no they that know and do need it number different

So message gets never stale. the

campaigns these and or time. that of see some advertising success real So messaging we failure in of

if So campaign it something well. want not and that we shift on that, performing over advertising awareness brand or conversion, an stop for producing either is then just the is we spending that to results,

as in So as that recognition, direct a sale channel, far because a is results it's revenue to sale. it soon recognized, our consumer as as revenue in

as I they of so that is ad routines. or think really, their very product and have into that we start, in we that they lucky as regardless thing And have online people are stickiness, far one sophistication our built a like really to once daily campaigns, our just a marketing it's product

one having road, as when up into don't I have out people have this have is really and Avenova when when this, the why if a my it, on to they store CVS part and go - CVS ability they're daily routine. sometimes with their And have I reason shelf. difference or So they're of sometimes a run and have it like, because the unhappy, of off the partnership people they I'm kind can't a feel just to have my I eyesight pick I freak they and out, is travel, the nice to don't

have customer that. stickiness think wouldn't I to call They're the customers. XXX%. return We've that really the goes just they're to we even customers. a great. lot about lot of But feedback loyal positive I - product that returned just gotten a is think I them Avenova of

Unidentified Analyst

which kind us That you Can store? products, I get just segues where remind want reminder? you. to just I thank of that's around Okay, my would next question, eye a it's CVS. in with but the assume into is located

Justin Hall

the hard CVS in is very actually store it's where Daphne, choose to store. it the in

and it we CVS was are over I section gone eyelashes, the the outside eye drops, know, section the look with I places that the there so in to eye mean, store many over Visine usually going drops. by mascara with if be. are that's fake it the ophthalmic to Typically drops. is And section store, if right But ophthalmic the the in can pharmacy. was, of I if eyeliner. eye CVS for would this the when so other it to love you're So you it store, to outside go you have within it like CVS by the for pharmacy. right now, have But of

Unidentified Analyst

I see, it. got

different relationship I guess ever you CelleRx kind you put you ask, to of and And would able would think thank channels Okay, CVS that I point with a leverage any to then of for eyelash at CelleRx to channel? be in to for well? want to alternative And CVS as just sense move you. it that. your beauty what do finally, Thank section you see make do

Justin Hall

store. spent research, trying them buy products most want that certainly of the CelleRx they to aspect. And We target put didn't people of it our into this to a would I out to who love away the research them market because money knowing do website buy the our be so make about Yes, this Amazon, they we of on it demographic bit are product, tend throw first our the found our year doing could their buy and don't half We're from the what demographic, selective this that CVS, a to proprietary without market on target partner at lot was. not beauty a likely little buy or really into if we through manufacturer. market brick-and-mortar

and placed main is we emphasis now CelleRx. placed to where access we CelleRx and that So where our

Operator

Our Edward ahead. Ascendiant next question Woo Please come with from will Capital. go

Unidentified Analyst

Woo. here filling for in Ed Yang] [Harry

the I-Chek you areas or ask, thinking are to mirror, some about the what to or wanted expanding products broaden guys besides you of adding other products mentioned, Just into the like guys portfolio?

Justin Hall

going stay you're to for that. to tuned have So

different And on making now. working we'll in deals announcements right are a coming those couple the We weeks. be

office, are and the the some But even I-Chek have very using with and head-to-head your difference see and allows can't a it We in So than competes - better, a say our complementary use have I is really Bruder. Eye see lids proprietary think lashes the to in it's tagline. the people And hard to just NovaWipes our the and you and Avenova and though our of right but symptoms we to also better Avenova the do Compress marketing, be and may to are progress visual now a because, is of getting that up our the products we we you the close that eye I-Chek Bruder Avenova know, with the additions. that's in Warm don't eye really difference say there's are visual it that mask there mirror. lashes track their that lids by looking around

drop is we dry that and for this I-Chek lubricating specifically a their I the is as eye track that mentioned to And branded later year. coming out do will earlier, Avenova progress with Avenova. have people then So designed be

Operator

question-and-answer this Hall Justin Ladies like conclude will I'd our to closing and to conference for over the gentlemen, any back turn session. remarks.

Justin Hall

We joining you and you look NovaBay. next November your once In please call to discuss forward and third us have the for financial results business Thank we'll meantime, quarter our interest when progress. a in day. in during our nice again updating

Operator

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

You may disconnect. now

NovaBay Pharmaceuticals (NBY) 13 Aug 212021 Q2 Earnings call transcript