Sanara Medtech, Inc. (NASDAQ:SMTI) Q2 2023 Earnings Conference Call August 15, 2023 9:00 AM ET

Company Participants

Callon Nichols - VP, Corporate Operations

Ron Nixon - Executive Chairman

Zach Fleming - CEO

Mike McNeil - CFO

Conference Call Participants

Ross Osborn - Cantor Fitzgerald

Ian Cassel - MicroCap Club

Operator

Greetings. Welcome to the Sanara MedTech Inc. Second Quarter 2023 Results and Business Update Conference Call. [Operator Instructions]. Please note that this conference is being recorded. I will now turn the conference over to your host, Callon Nichols, Director of Investor Relations. You may begin.

Callon Nichols

Thank you, and good morning, everyone. I'd like to welcome you to Sanara MedTech's earnings conference call for the quarter ended June 30, 2023. We issued our earnings release yesterday afternoon, and I would like to highlight that we've posted today's deck on the Investor Relations page of our website.

This supplemental deck as well as a copy of the earnings release and Form 10-Q for the quarter ended June 30, 2023, are available on this page. We will reference this information in our remarks today. We expect today's prepared comments from Ron Nixon, Executive Chairman; Zach Fleming, Chief Executive Officer; and Mike McNeil, Chief Financial Officer to last approximately 15 minutes to allow time for Q&A.

Certain statements in this conference call and our press release and in our supplemental deck include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

For more information about the risks and uncertainties involving forward-looking statements and factors that could cause actual results to vary materially from those projected or implied by forward-looking statements, please see the risk factors set forth in our most recent annual report on Form 10-K as supplemented by the risk factors in our most recent quarterly report on Form 10-Q.

Now I would like to turn the call over to Ron Nixon.

Ron Nixon

Thank you, Callon, and good morning, everyone. In Q2 2023, Sanara generated $15.8 million in net revenue, representing a 63% increase from the prior-year period. Second quarter of 2023 was another record quarter -- revenue record quarter for Sanara, but the company did have a slower growth rate, which Zach will discuss and outline the plan we are implementing to continue our increased year-over-year growth strategy.

Our loss before income taxes narrowed from $3.4 million to $1.9 million year over year in Q2. We had a net loss of $1.9 million compared to net income of $800,000 for the for the prior-year period. A higher net income in 2022 was primarily due to a one-time non-cash income tax benefit realized in Q2 of 2022.