NBY - Earnings call transcript Q1 2024 | NovaBay Pharmaceuticals, Inc.

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Operator

Ladies and gentlemen, welcome to the NovaBay Pharmaceuticals Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. And I would now like to turn the conference over to Bruce Voss. Please go ahead.

Bruce Voss

Thank you. with Voss Bruce is LHA. This for Thank today's in you all call. participating

Officer. Justin from Tommy Executive Financial NovaBay me Hall, Law, Pharmaceuticals Chief and Joining Counsel; are Chief General Officer Interim and

comments there is beyond means materially I impact results of that actual time made particular, for circumstances the NovaBay's will uncertainty would broader results. could could the estimate forward-looking the These is cause securities within contemplated outlook on different results the anticipated best of statements any remind In available risks that today's forward-looking like listeners about operations, based control statements discussion. company's the include and during call involve information financial at from by to any economy. this management federal impact laws. be that meaning This to that circumstances and and results such change uncertainties upon

of filings available and uncertainties, list and please and a sec.gov. NovaBay's at Commission, description Exchange review For Securities risks which the with are

the live as reflect contains as update of to to of or date that circumstances, XXXX. or the of is law. accurate the only revise Furthermore, conference May undertakes information no this statements NovaBay required obligation X, by events except broadcast, call content

call like I'd to to now And turn over Hall. the Justin

Justin?

Justin Hall

thank then months X channel. in March Bruce. high past record ordered record our in all-time for beat Thank Avenova to afternoon, joining in set it April. we Amazon.com, and the We you, an hit report new largest you sales everybody, Good us. and that a I'm pleased on products sales of

These are that higher sales Days. XXXX order even than more April Prime in -- Amazon even April and ordered record-breaking our eclipse March sales product fact, given April, were months, included more In were impressive than XX% records that XXXX. sales

to in this surprising surpassing very saw growth that sales sales year, due not increase to XX% channels. for an that through online We the $X largely sales sales increased increase our channels largely quarter first prior quarter program, channel product higher our cost-efficient through million with sales over from This been X% media sustained it's online mid-XXXX able first is from social has over time. attributed the So prior sales, Avenova increased on with year-over-year the were e-mail upward year. our than ad these our placement marketing programs. in spend driven by prior channel, being our more than we which and trajectory XXX% a XXX% XX% more sales by Even over the through up reduce to with QX since which

the our We're these encouraged business expertise records excited focus a quality high and customer by new of loyal extremely on our products following marketing the base. and testament is This to to streamlining solely and of eyecare. our

the to that We franchise each Avenova a years recognition a solid one to hypochlorous acid also dry ago to these spray, lash our developed several multifaceted lid We built products may portfolio offer records manage. our and step eye us attribute prompted of be complex the best-in-class is expand branded stubborn dry the more condition eye approach to This doctor-recommended of regimen. Avenova than foundation eye that can scientifically #X on dry require solution. the which for and treatment

omega-X lubricating monitor eyelid eyes, an includes for now a to dietary physical i-Chek and irritated line WarmEye antioxidant-rich relief, product Avenova oils, Compress soothe Our health. with to eye drops the instant supplement

our of eye U.S., the room in observed of XX afflicting Americans. syndrome one with large offers most we is position the of eyecare year, this took products to focusing to high-growth Avenova NovaBay step that Earlier market to brand by addressing the million is approximately the clinical growing a Dry and commonly plenty most eye. market under a dry opportunities pursue This on us major grow. diseases

billion and U.S. driving In to in fact, Among grow and eye this eye to the market $X awareness growth from this is $X.X are factors diseases ocular a the XXXX. the billion time of increased smartphone XXXX projected computer treatment for other the by diagnostic due condition heightened and surface the population aging usage, screen of prevalence escalating of capabilities. dry and to improved dry

e-mails In effects sight did we've aimed channel directly the OTC our our in at enhance Throughout better digital physician of this discussed transitioning build We're products. the marketing online Avenova with past, OTC loyalty this in enhance These has incredible new to dispense marketing cost our the patients and brand, Avenova noting to social measures marketing meet into customers. their text messages to our success engage media specialists expanding on period, not sales of we our programs lose efficiently marketing engage eyecare our customers. our customers. programs to customer programs channel, the include halo management customers drive reach prospective and targeted further digital to and

with programs immediate text exclusive news other customers engage to and and the producing point and messaging results. audience as value-added use share text initial to and an such our content interact for tips with strong plan tips additional health and to eye We provide brand. touch encourage Our encouraging discounts, our to messaging are enhancing

automation. expanding campaign retention our to e-mail base customer while new We target and include reach to recently loyal programs audiences. new creative existing added also Both refreshed highly enhance to our and

everybody in our update announced co-marketing to March. now agreement with Eyenovia Turning we on that

in and the for steroid Clobetasol solution pain. inflammation clobetasol, surgeons. unique market U.S. postoperative may first the that's recall convenient received and ocular ophthalmic by prescribed years. prescription-only of for to Eyenovia and enter more sustained the is more FDA surgery cataract This patients new compelling, XX a a treatment with steroid ophthalmologists approval and and differentiated provides You that than rapid

program market alongside NovaBay the it products. earlier completed our our expecting Eyenovia it reps, through also will third sales market are Eyenovia I'm this training We dispense this the pleased the that of in their team to Under report launch Eyenovia sales agreement, sales Avenova we quarter. reps while channel. month. will will Avenova market physician in to

So the to results. Tommy to Tommy? call turn I'd now over review like financial to our

Tommy Law

and afternoon, and I'll review cash everybody. good Justin, Thank then position. QX results you, our

start, Before to results I that DERMAdoctor. not that first like Operations. Divestiture be from results filed heading XXXX for be of found we today the include financial will and results can XXXX I'd the today XX-Q These do mention the discussing that and Discontinued the we under Form in quarters

of online sales $X.X channels. were increased higher to up the for sales year, Sales from prior to over the the increase year $X.X business Total due prior quarter $X.X net with XXXX in our million. from eyecare the million first XX% through Avenova branded million,

contribution from higher X wound a care benefited from quarter. branded modestly the Phase sales product also during We

Gross marketing for period. million costs quarters expertise, expenses was XX% year from with prior were XXXX strategic to margin related and decreased lower quarter for initiatives. XXXX Sales consulting digital year R&D on due expenses services. were nonrecurring leverage first the and for expenses G&A along to the the net prior the up our higher first for quarter, to the XX% XXXX. $XX,XXX legal versus $X.X million from for related to mainly million advertising $X.X by expenses both as $X.X continue product revenue we of $XX,XXX of

contract subsidiary of with Related which first divestiture, to the with business loss during quarters these logistical acquirer agreement includes in at from expenses. recorded a services. in This we the in our to transition. service warehousing the quarter entered Costs as a expiring customary the this with for for be is will connection DERMAdoctor divestiture, of provide operating $XXX,XXX, recorded noncash a of into the future loss year. and a In we included orderly service a incurred this end and operations services divestiture continuing

gains of warrant value XXXX, items notes of and during to on of other $XXX,XXX recorded primarily March warrant change of the $XXX,XXX in embedded derivative in no and the the with comparable and quarter convertible issuance XXXX. discount in unsecured we fair $XXX,XXX first the on notes during on change due expense issued Among XXXX fair XXXX. the noncash of net items, March value we accretion recorded of of the first quarter of $XX,XXX of quarter, Also liabilities in liability convertible

million attributable the Net loss for common equivalents quarter the call quarter for turn of first the was This the to $X.XX compares XXXX attributable loss stockholders per $X.X We or XXXX common cash cash Justin. of share. and I'll as share. reported with net to to stockholders first $X.XX million $X.X of now million of or of back $X.X And XXXX. XX, March per

Justin Hall

Thanks, Tommy.

target dry projected has large of U.S. eye expertise market, years. next in So Amazon.com. through over product growth in in ordered records build is and that nearly $X programs a success to X on summary, growing its all-time loyal and and well-established customers. billion marketing We're base brand our digital months past Avenova with recent We're success in proud digital customer our which in validates introducing the our is potential that sales potential that tremendous to X the reaching new attracting the new reach the the effectiveness

promoting effectively our managing we're our products cost expenses. while Importantly, efficiently

relationship on thousands our leverage agreement, to co-promote new We're also relationships specialists we market our products. of established growth clobetasol our to with Avenova, will eyecare co-promotion opportunities product. reps other's newly Eyenovia with sales with Under capitalizing each strategic Eyenovia market the approved while

this our is dispensed ready-made of products. accelerate Avenova channel to a which provides line physician commercialization, complementary to Our opportunity product's

supports channel, product our relationships Over our through prescription sales that the dispense a OTC It's strengthen instrumental past which our year, we've which also a in introduced in sales. creates for effect, partnership programs marketing with developing halo -- channel. physician

we're that of thank you Operator, attention. recent take overview now So for I performance, your ready to and with questions. financial our business

Operator

the first from your And line Instructions] with question [Operator of Cohen Thalman. comes Jeffrey Ladenburg

Jeffrey Cohen

few questions Avenova. from A

cetera, of or And And as talk for far do moment? demographics, type far as a as you about Amazon so data you receive can customers. et geographies what their as

Justin Hall

question. that's a good Jeff, Yes,

We actually just at looking week. this that are

in sort we weighted do Texas heavily not get and and we Eastern are So California, Seaboard. geographies of very surprisingly, the

does and of that So our good interaction that data focus knows I of some get with think do do around to customers. efforts. you're where know geography, with limit everybody we amount able those the lot said, that Amazon get But a to we

of is bit buy It's our customers sales we on push and But sales somewhat little limited data also the there. largest channel. that pull. efficient from a do So channel. It's most our it have

Jeffrey Cohen

are the available avenova.com might can are that wipes, that And ex looks got half SKUs of spray percent or eye on like you percent Amazon. sales of talk to than far on you've that them -- drops? the it check sales now, the as of and be Could attributable compresses appears the XX supplements, eye as about the more see I the

Justin Hall

Yes.

that So into gives business. our percentage insight really good

and also our That's recommend most. products. is that's one the the the hero our doctors spray. most lash And lid So SKU antimicrobial differentiated really that

of purity So spray. I the think and the that close there's market no the other to product on comes efficacy

does amount So revenue the of but also sort spray, the of other comes revenue line, it's a from the majority of heavily an our and increasing from come doubt, without weighted spray. but on product bundles the the

Jeffrey Cohen

it. on texting, like that's if Got then And that. any I your off. any pricing. if differentials potential order beyond on Avenova on you know looks Direct between pricing it's commentary sign or first or Avenova XX% up Direct But Amazon? don't for commentary differentials It and

Justin Hall

Yes.

Jeff, I aspect, face are one same vast face. majority vendors the that that Amazon is that the this opportunities same. also We of challenges we the the think on and So

Amazon to don't really much. I also with interact limiting. get for mentioned to though first us, We question, customers even is those very as So very very it's efficient your

the customers day. try is It's how easy of battle to very like direct it's it makes do -- and from lure you'll I easy and do, how we our Amazon receive Amazon. think many And own customer, away they're makes customers because website, as uphill an of what ours right? next for so now buy it So the

-- So easy it's and it our on options, bundles discounts majority and that unique Pay Amazon, own Amazon we mix trying with buy to with to try OTC website draw own one-click between to website. website customers the of are the our and Apple own and revenue. But is make unique really our but we

own we them make also data, very interact So more then and and able then -- we're Avenova with them that fans. really own we that loyal customer to

Jeffrey Cohen

it. Got

Okay. far and or And team have talk geographic Could one the the you they of more, W-Xs what's they their training some all may. as reference ]? And about size are if Eyenovia now? team what presence? domestically with as XXXXs Do [ I the

Justin Hall

Yes.

doctors representatives before sales had about Avenova the field field, X are metropolitan partnership feels it face-to-face we good products so in why and since about visiting why very representatives Eyenovia. have main So the field of one the it reasons and this talking with excited is the why currently actually our is areas. major in has -- optimistic pandemic. They so out not about And we're

we'll practiced is past really call So don't know, a that just And a model -- return I business over think really we nothing this the face-to-face years. contact. it I haven't replaces that to X

a even that while expensive, of sales there's cost calls to with can't be meeting. certain the replaced building So Zoom magic is very that field relationship phone reps or

we're on board. So to them excited have

agreement with will sell force. clobetasol co-promotion that through inside our our And we them is sales

out So both we'll sales reps. the in their out have And products physical in they will be be their our field calling where have they sales don't wherever areas they field rep. products selling a and then

call next having they're believe on Tuesday. earnings I So their week. it's

training it excited into we listen and Avenova. the our it hear should from the was clobetasol and completed to both for about we we're Rowe's So details that end straight Michael but mouth, on all

we people on our product. people, they their So X X trained trained then their and

Operator

And Ascendiant Edward comes the question Woo next Capital. your of line from with

Edward Woo

on My able direct rest Congratulations reach you Amazon? are be more for them? channel to to reach spend them? your of on on to your is progress. How money marketing Or marketing is the strategy year, question Are overall going on consumers to strategy? your for the the what you going particularly the

Justin Hall

past talking especially we we great a again, because just think were in successful months. business. just the That's a we Ed, over the And between very and about growing becoming efficient, I fine XX -- being -- Yes. balance been efficient because question, have that recently there's we're

become have more we're efficient customers. to and in way the those reaching that more We out

said, that expensive. it's with acquisition hard new customer is and And

a going after funnel grow But customers, business. we're so the on top And spending acquisition. little of cautious pretty money customer on hard filling new new and without the it's the to

to the of conversion strategy for in that channel, be of of continue is the customers the really our sort from into grow online rest year doctor's channel going sales OTC try our and our we but efficiency and the from So to physician-dispensed the have the office channel.

growth there. lot of So a there's and I think opportunity

it's when So they product of doctor, about first from it, and educated people the it, Avenova because get a trust know and they a they're doctor about their bottle then learn recommendation.

buy that nobody across to online. it a But want to going doctor we go know all is consumable buy just town back to the product. They to

them and try just the happy then avenova.com, buy customer on on we're to So find Amazon that save we're product subscribe the either become to Amazon product and on going grab or and to have a customer.

is So last it our question. looks like that

their nice to our excited So and us in I a eyecare quarterly and in strategic on August. look and NovaBay. in our forward thank in another everybody large joining market dry eye again, providing We're our about have update business. today growing established for day. Thanks focus We call interest the

Operator

Ladies for today's and you concludes gentlemen, and we this call, thank your participation.

now may You disconnect.

NovaBay Pharmaceuticals (NBY) 9 May 242024 Q1 Earnings call transcript