Sanara MedTech Inc. (NASDAQ:SMTI) Q3 2024 Earnings Conference Call November 13, 2024 9:00 AM ET

Company Participants

Ronald Nixon - Executive Chairman and CEO
Seth Yon - President of Commercial
Michael McNeil - Chief Financial Officer
Sam Muppalla - Tissue Health Plus

Conference Call Participants

Ross Osborn - Cantor Fitzgerald
Ian Cassel - MicroCapClub
Chris Plahm - Tall Pines Capital
John Siedhoff - Twin Oaks Equity

Operator

Good morning, and welcome to the Sanara MedTech Third Quarter 2024 Earnings Conference Call. The company issued its earnings release yesterday and will post today's supplemental deck on the Investor Relations page on the company's website.

With us today are Ron Nixon, Executive Chairman and CEO; Mike McNeil, Chief Financial Officer; Seth Yon, President, Commercial; and Sam Muppalla, who leads Tissue Health Plus.

Please note that 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 differ 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 the company's most recent quarterly report on Form 10-Q.

Also, this conference call, the earnings release and supplemental deck reference certain non-GAAP measures. In that regard, please refer to the reconciliation of these measures in the earnings materials that are available on our website.

Now I'd like to turn the call over to Ron Nixon.

Ronald Nixon

Thank you, operator, and good morning, everyone.

During the third quarter of 2024, the company generated $21.7 million in net revenue. This was an increase of 35% year-over-year and represented our 12th consecutive record revenue quarter. The strong sales performance in Q3 is a testament to the hard work and dedication of our entire organization in executing our strategy. We remain focused on continuing our growth and delivering exceptional value to both our customers and shareholders.

Third quarter also achieved improved adjusted EBITDA results. Sanara generated adjusted EBITDA of $800,000 during the third quarter of 2024 compared to adjusted EBITDA of $300,000 for the same period in 2023.

In Q2, we began reporting additional financial performance metrics of our Surgical division and Tissue Health Plus as a separate business segments. This transition to segment reporting better aligns with how our leadership team views the business. Our Surgical segment generated a $200,000 net loss in the third quarter and a net loss of $2.9 million year-to-date through September 30, 2024.