Eton Pharmaceuticals, Inc. (NASDAQ:ETON) Q3 2023 Earnings Conference Call November 9, 2023 4:30 PM ET

Company Participants

David Krempa - Chief Business Officer

Sean Brynjelsen - Chief Executive Officer

James Gruber - Chief Financial Officer

Conference Call Participants

Raghuram Selvaraju - H.C. Wainwright

Operator

Good afternoon, and welcome to the Eton Pharmaceuticals Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that this call is being recorded at the company's request.

At this time, I would like to turn it over to David Krempa, Chief Business Officer at Eton Pharmaceuticals. Please proceed.

David Krempa

Thank you, operator. Good afternoon, everyone, and welcome to Eaton's third quarter 2023 conference call. This afternoon, we issued a press release that outlines the topics we plan to discuss on today's call. The release is available on our website, etonpharma.com. Joining me on our call today, we have Sean Brynjelsen, our CEO; and James Gruber, our CFO. In addition to taking live questions on today's call, we will be answering questions that are e-mailed to us. Investors can send your questions to investorrelations@etonpharma.com.

Before we begin, I would like to remind everyone that remarks made during today's call may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those contained in these forward-looking statements. Please see the forward-looking statements disclaimer in our earnings release and the risk factors in the company's filings with the SEC.

Now I will turn the call over to our CEO, Sean Brynjelsen.

Sean Brynjelsen

Thank you, David. Thank you, everyone, for joining. And I'd like to first start off with a discussion of our third quarter. This was a very strong quarter for the company, and in fact, our 11th straight quarter of sequential product revenue growth.

More importantly, though, we achieved a critical milestone for the company by delivering positive cash flow from operations. This was posted this positive cash flow from operations is solely on product sales and royalty revenue. There were no one-time benefits from licensing revenue in the quarter. And as many of you know, we had previously communicated to investors that our goal was to reach cash flow breakeven by the end of this year. So I am pleased that our strong revenue growth and disciplined cost structure allowed us to reach this critical mark a whole quarter ahead of schedule.

We are growing rapidly and expect that to continue for the foreseeable future, but we are also committed to profitable growth. I think our recent results are proving that to investors, while our revenue this quarter increased an impressive 118% year-over-year, our selling, general and administrative expenses increased by only 4% year-over-year.