NBY - Earnings call transcript Q4 2021 | NovaBay Pharmaceuticals, Inc.

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Operator

Good afternoon and welcome to the NovaBay Pharmaceuticals Fourth Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jody Cain. Please go ahead.

Jody Cain

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

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

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

Justin?

Justin Hall

high us. sales over thank pleased fourth and increased for I record year am unit product XX% report Thank you, to sales of Jody. Good everyone prior on Avenova by you quarter period the that the for more afternoon, people spray. increased in used the than while Avenova as was units by lash lid increased number and sold of to year a productive spray. our which anti-microbial strong highly by XX%, a close QX sales XX%, joining ever

product reflecting came revenue of Avenova which most The my of Importantly, acquisition the our channels one corporate history. eye from crowning large during November. XX% our our this non-prescription a the in growing event effectively from completed skincare DERMAdoctor, product a was In to success DERMAdoctor significant transitioned the and XXXX of we XXXX is strong of view, was markets. acquiring in consumer marketing achievement initiatives. single in presence By care company with and the NovaBay

Avenova synergistic the gained is both initiatives for of strategy growth over-the-counter DERMAdoctor is companies. While diversifying opportunities additional our a out also from introducing under our Among developed, quarterly combined our we significant I this our portfolio in products last growth itself value, multi-pronged scientifically brands. product call, highly transaction. laid innovative, strategic On and

eye on lubricating relief care our already by of highly eyes. having market. mode Avenova are is our and them designed our two These effective providing is initiative drops product new the from lubricating this irritated, that or portfolio eye executing of scratchy new What immediate blurry eye gritty, to January, We new drops were the eye drops. expanded launched products we this year. help launch with dry In sufferers eye the entirely makes to differentiates so action

specifically also resale our can and drops eyes Audrey for cool month, the They new Avenova officer, with created eye standalone who channel. moisture management. product recovery dry formulated daily these which Co-Founder Dr. the by science acid regimen serum. and This DERMAdoctor to our other DERMAdoctor. Like Warm dispense physician we dermadoctor.com. calm, is you at for sale hydrate our eczema was through product home expands Serum and drops prone sore they launched are a eye skin. offered Avenova and HA Kunin, new The While corrected products, find dermatologist effective combined hyaluronic a our on specialists are Earlier eye they Avenova by when three-step certified is become for care of product, this amazon.com, a lubricating are repair as family, for and spray, Compress avenova.com board Eye

natural the Our to water parched it serum cactus is dragon unique binding to skin. includes marketplace, vitamin botanicals C, because fruit and to restore hydration

products. by consumers new the DERMAdoctor with bring Avenova and for have engage digital strong through all the growth marketing expertise influencer of pipeline, presence our and just social Beyond and developing in expanding opportunity in-house and brand teams media social allowing channels, to we a extensive across current an distribution The marketing robust media product campaigns. combined the

key on publications, industry marieclaire.com. of XXXX, cnn.com including We Audrey cosmopolitan.com, as a skincare topics. skincare online glam.com, provide opportunities appearing building an in opinion beauty by opinion on and beginning for Since Audrey’s established been her various the and position expert leader in the and articles in to quoted identifying are has

in NovaBay also have on may make DERMAdoctor United called firm dates and Leah appearance as QVC our Audrey of success engaged executing a of her expected of on-air to guest seen we To those marketing recent and the Audrey expand Chinese the once been sales times You featured Chinese show our she market. drive eczema we States. products popularity plan to additional they with to end, in the new also is her that on Shopping set. appearance, which vast consumer Shawn, appearances and to has announce Due strategy leading outside in an to a to activities Cheers! QVC and are balm. marketing

store X, consumer flagship to in retailer March tmall.com, business our online leading managing the China. DERMAdoctor’s which began is of on new As partner

has last that predicated awareness. the ability that excellent positive market strong know, several local in over on business years. we thing is relationships a have NovaBay the the partner As One that create you having success developed China and may China understands is in to brand learned has

brings network of the new are influencers along and new and brand TikTok to strong with like capabilities. building a best ways marketing expanded China in platforms customers media social media greatly Social bloggers attract partner our

distributors of the retailers world. international also with are distribute leverage We throughout further network and to looking products their to relationships NovaBay DERMAdoctor’s

As products warehouse for an DERMAdoctor sharing operations, acquisition, this shipping fees. and All helping picking Amazon placed orders branded by packing, benefit us Avenova from another through our logistics. including storage, now NovaBay and update website save DERMAdoctor are on on and fulfilled now own are

financial Now year I’d the our full like call Andy review the to from and to QX over turn XXXX. to performance

Andy Jones

Justin and you, good everybody. Thank afternoon

exercisable by with we fair warrants. We those partially acquisition $X.X non-recurring prior recorded revenue the The for with XXXX loss million. branded completed QX DERMAdoctor was conjunction $X.X XXXX $X.X a liability for compares NovaBay with headcount, compared approximately expenses $X.XX we was million, of This XXXX represented to place took expenses Avenova both which this DERMAdoctor compared the share. the products this in year XX% liabilities expense million. Total for prior $X.XX approximately $X.X in $XXX,XXX marketing fourth recorded period. in the G&A they the quarter That XXXX. $XX,XXX Sales XXXX These year spray the XXXX That Products due $X.X prior Net is which sales for approximately to private the sales marketing was drive transferred million this NovaBay increasing costs of as QX products. also over-the-counter quarter. of fourth This XXXX margin the expenses quarter product common year due DERMAdoctor NeutroPhase quarter placement with in non-cash investment decrease a net and contributed brands decrease January of includes These cost in share. acquisition costs in equity. loss and in of increase for in margin of issued XX%, fair offset combined were XXXX in time And higher DERMAdoctor XXXX and on X was decrease net were was the beginning period. to results. with gain the December sales a in we was closed we expenses quarter gain prior increases incurred placement As common we million the for with XXXX. that as fourth financings primarily with related at warrants the sales our me. higher forward warrants to for The net a were quarter in close sales the increased a primarily quarter attributable from compares branded $X.X approximately $XXX,XXX million wound $XXX,XXX when to period traditionally the the from due their the related DERMAdoctor QX, XXXX quarter operating excuse with DERMAdoctor portion $XXX,XXX quarter with the XX% QX classified XX%. XX, the to fourth digital the their increased with compares $X.X of on XXXX. in associated became advertising consisted to of Gross costs acquisition. year and the up $X.X stockholders expenses million a the private XXXX XX% prior reminder, warrant includes Rounding to that prior $X.X completed the spray and date unit acquisition. subsequent were relates in the X, quarter Avenova the million million. of year the fourth anticipation care sales per in year for in which or pharmacy and when was the increase $X.X quarter to the acquisition to until due close and period. XXXX reflect with Avenova after were after of financing, and of attributable product acquisition. Total with incurred on ago our fourth value revenue $X.X reduction adoption, of of Phase stockholders and for that the one-time adopt majority million XXXX $XXX,XXX compares value the from the for and in also or fourth other And from costs the with increase to issuance financing. of quarter fourth R&D $X,XXX unit marketing November to significant changes results million, channels. DERMAdoctor The associated Other financial Avenova a our G&A the revenue the – DERMAdoctor were

to sales XX% up sales, $X.X from now are net includes we our financial XXXX for which Avenova Turning XXXX. reporting total million, XXXX spray in of $X.X full results, year million

recorded share. compares for expenses loss warrant non-cash This $XX as in was XXXX XXXX was financing was expenses for for these common mentioned, we incurred for per or $X.X XX% to million. significant and million XXXX loss improvement expense non-recurring for million. margin were a this for XX%. were attributable of $X.X share sales XXXX Avenova is This million million As stockholders with in Justin for XXXX compares we KNXX pandemic Gross hire for This loss net XXXX $X.X $X.X DERMAdoctor This other advertising for the spray this attributable Total digital million. million costs increased Other to non-cash for XXXX of the liability XXXX. from with mainly changes in or improvement products $X.X is operating XXXX $X.XX invested the $XX.X other COVID-XX supply. products in early acquisition programs. sales $XX.X XXXX. sales net of XXXX to and gain were marketing with short with Total XXXX masks million. unit increase sold million and a of when for on and attributable Net and $XXX,XXX. one-time net the compared compares from income $X.X We of and value to per an a of PPE in net stockholders for in mentioned with And XXXX. with fair sales $X.XX conjunction XX% previously common a included approximately

December cash and XXXX, As XX, $X.X of we cash equivalents had of million.

back I raised net to placement sufficient the cash to current we proceeds cost we that fund well our and development Avenova XXXX, operations under that, launch names. During facility. Justin. brand new financing with offerings will from private over both pleased the including through year, I ATM DERMAdoctor is believe an as coming And report am as it and turn to product of our the effective

Justin Hall

this women extension in are XXXX, eyelids. opportunity eliminating extensions increase Eyelash sales while market the dry we infection help but expanding not rate to we appearance a Thanks, of enhance their market will our for demographic, existing the of Avenova This eye plan our on we product be growth the going the market. Avenova’s lash of significant projected been irritation Many a reaching grow Andy. addressable challenge. to represents almost for year, opportunity market manage for after us no focused will pipeline There the new of growth broad throughout with a on the industry. billion mascara. the is can $X.X some is as year. with turning for eyelash year, the extensions to and that in expanding until X.X totally primed This also overlap properties plenty risk beauty XXXX, only customer has now, Up can anti-microbial need and products. global be through rapid also

market will a us to cross-selling opportunities first care this on into be time beauty, customers. overlap will with allow afforded by our integrating eye Moving capitalize which DERMAdoctor and demographic

large Directors. call I brings our the like Board XX in Sean joined vacancy markets. dermatology significant Garlikov to our a including opening and to and welcome of than the care our overseas experience, more Julie Sean by resignation. several Zheng new was questions, would Julie board along a eye In marketing Audrey Before January, fill with members. years recommended NovaBay following stockholders expertise to of of

we better board to of directors transformed these With X from and increased our appointments, new size the significant our expertise company. added that reflects X

my like I future. Lastly, reiterate for enthusiasm NovaBay’s to would

strategy creating stronger faster stronger footprints at expanded in a company and the faster on skincare aimed and eye and executing with already care – are growing We growing markets.

We half remain debt expect will year. the rates no interest have with rising with in initiatives we path underway unencumbered Giving to we many the clear the of growth. our second to of to the more initiatives, accelerate of growth timing be majority XXXX a our instruments, Thankfully, by in profitability.

out I goals. confident our With stated agenda set now are on We for in I front can but questions. to that have of all achieve us, attention. we capitalize to our company an ambitious we ready am that, your highly transformed take you thank Operator, of

Operator

Instructions] [Operator

Justin Hall

May we at a alert XXXX Stockholders that plan we Before statement virtual like event we I’d questions, month file to of end hold take Annual our and will you as to the our this of proxy on XX. Meeting

the we ready first are Operator, Okay. for question.

Operator

Jeffrey Please comes ahead. question And from Thalmann. that Cohen with Ladenburg go

Destiny Hance

actually is doing you on for today? Destiny are this Jeff. How Hi,

Justin Hall

Destiny. Hi,

We are doing great.

Andy Jones

Hi.

Destiny Hance

are and with be to the talked of in have market? And Could both am are are with just then go other Avenova. point you extensions some little and eyelash industry how extend you the they I lash wanted I the What glad lines in DERMAdoctor just some to in couple some product beauty hear. you a into that XXXX? quickly a about skincare/beauty that where to products which segments referenced over you kind you bit? understand looking am know of there – and I curious product are into the if could further discuss pipeline given going times crossover looking I extensions to of at any the that

Justin Hall

Well, I to length Destiny. for entire competitive Yes. out to at don’t product we it our love But pipeline. want with discuss would you, reasons, give actually,

that planning new products established families. are on product we So, fall into developing DERMAdoctor’s

to few are additions family, families year, launched a to like we wait establish see will like you additions going hyaluronic have just to acid they going you product the that see So, year, and just that, you some this are to this are. to the but see what DERMAdoctor earlier

Destiny Hance

exciting. Very

Okay.

of I Are curious necessarily their am subscribe feature. another buying the opting the Thank do. save no more think it’s larger and you So, purchase? noticing a you. product happening that do and extensions then customers ones, on or the product existing that of about And will portion purchase, second families, first you on just new repeat in are

Justin Hall

Yes.

that question. and the great purchase. is So, we it’s something And a really seeing after are third that second

is and the that for purchase. do our Avenova save consumer they multipacks. So, oftentimes either quite of before back And will tried they of purchase product, time to and bit or especially another first happen they once to the the education a the purchase new bottle, then go they will needs one subscribe first there

that rolled me our on is the do warehousing gave to of our bundles website in synergies excuse and lot popular one the City. along DERMAdoctor the us bundle that of kitted So, then warehouse of of for some larger this own we and out kitted all our three-pack. initiatives Amazon. or word, the moved a And into with our using Kansas we also ability And on most the

when absolutely and they has must been have do product, loyalty a decide save, as love single a the they do a or subscribe program go it, it so will three-pack. back they people have, works buy well them. that either will that really loyalty they DERMAdoctor already So, at will good they should, for in and customer And actually

Destiny Hance

it. Got

QVC, that that’s it And that whole And necessarily with presence trends research theme, then people their seeing Are of buying associated and people wondering guess but it of curious QVC. Are not own the you you I through am QVC? on kind are just with marketing great. I then buying it if could channels? to other there, doing buying just quick you this finding Okay, discuss purchase discovering on channel? are I that sticking this also about am some

Justin Hall

Yes.

So, actually both. it’s

goes a a it good out, very which either even I there people will to product. think understands sort QVC, very go connection and afterwards. of though a and hear But the is pricing on thing to go special the saw go we common female you really website, QVC place. with the little sale appearance a pointed to the lot advice And spike as of lift with the offers for the a is practical trends, slight astutely of about feel of then definitely QVC. people sort skin along consumer nice that, who on bit Amazon, very on problems up people buy about is simultaneously through really dermatologist with her one DERMAdoctor a that sort And QVC, on think Audrey and like of Amazon, I herself, of and a or

immediate also it’s So, but sale I that QVC, channels. lift think is get to other in really through true, both nice all a

Destiny Hance

of Got for a that we they or does guess – initiatives specifically in talk region, well? just more as strategy am what Alright. lastly me, engaged about what fairly And And the you I So, it. is marketing out? curious, the and differ can the near-term I campaigns within just then are some messaging all China little be the firms? branding in and everything at will this U.S. or rolling in consistent the

Justin Hall

that made solving things Well, problem is. DERMAdoctor one very way is, to brand, the appealing the of the brand a same is Avenova us that

to same, or care, either the very the some specific because a the So, to problem. eye specifically are remain treat products skincare marketing like eye care, in to designed degree, has

So, a lot of of the marketing the same. remains sort

keratosis that. skin. a you have Well, product pilaris, bumpy for If nicknamed have chicken of kind is which we

clinically something so particular proven same marketing of And remains the scientifically worldwide, address that to as problem. type a the created, has

the the market that really and worldwide. you how that products, thing in get So, is and the out. the with remains Chinese of DERMAdoctor same But differs companywide Avenova sort word

brand, our to platforms we initiatives. things, in right influencer the have China, And So already in a are traction, we influencers, an that I that have And really right that but new partner the use. to market paid you social that have we influencers. strong with our to social on all here, of the we the knows because the platforms partner. knows social think be our in the we need have And American gain own over knows usual very

is in are ready a supercharge and sales large of for that market. DERMAdoctor think they such that I to kind China over

us. up company incremental winds like even a small growth So, for significant amount being a

Destiny Hance

Got it.

you. Thank Okay.

that think for in will it I jump back I does me. queue.

Operator

go Please is The with next Capital. Ed Woo Ascendiant ahead. question from

Ed Woo

also Do costs? impact have issue from any And what Yes. input inflations or rising supply are you chains?

Justin Hall

Yes.

is little work is has successfully. to have chain And short managed. to been haven’t story It manage cost able been great time. a that that us of any a lot able The interruptions So, answer the and of question, we we it But be supply a Ed. a complicated. lot not thankfully, is had have

so out. But but any of or have it we from those that, suppliers able work say find to very get say all, of happy been And things the effects at I felt sort when thankfully have and increases been delays, won’t successfully we we haven’t of to that, those. all cost to we for able solutions

Ed Woo

luck. Well, you. wish guys, I Great. you thank good And Thank you.

Justin Hall

Ed. Okay. Thanks

Operator

This over concludes Justin the to question-and-answer our for remarks. any to like Hall back would closing session. I turn conference

Justin Hall

us Thank you interest and joining for your NovaBay. once in again

We are In the to extremely XXXX you. investor day. our excited look reporting progress forward about a and very the in future Thank meantime, bright We call have progress envision. QX our we May. during good

Andy Jones

you. Thank

Operator

presentation. The for attending today’s Thank conference you is now concluded.

now may You disconnect.

NovaBay Pharmaceuticals (NBY) 30 Mar 222021 Q4 Earnings call transcript