Shares of Zomedica (ZOM -0.24%) were soaring 14.7% higher as of 11:41 a.m. ET on Monday. The big jump came after the veterinary health company provided a sneak peek at its 2021 fourth-quarter and full-year revenue following the market close on Friday.
Zomedica reported total revenue in the fourth quarter and full-year 2021 of $4.1 million. The company stated that its gross margin was 73.9%. It ended 2021 with cash and cash equivalents totaling $195 million.
It often doesn't take much good news for penny stocks to move significantly higher. That appears to be the case with Zomedica. Investors are excited about Zomedica's sales primarily because of one reason: They're growing. In the prior-year period, the company didn't generate any revenue at all. Zomedica barely had any sales during the first three quarters of 2021.
The difference-maker was the company's acquisition of PulseVet last October. PulseVet, which markets electro-hydraulic shock wave technology used to treat several conditions in animals, contributed $4 million of Zomedica's Q4 revenue.
Zomedica's Truforma point-of-care diagnostics platform for veterinarians also picked up momentum in the fourth quarter. The company reported Truforma Q4 sales of $73,000, up from $22,500 in the third quarter.
Zomedica will issue its full fourth-quarter and full-year 2021 earnings release on March 1. But investors will probably be even more eager to hear from CEO Larry Heaton a week later. Heaton is scheduled to discuss the company's strategy for PulseVet and Truforma during the Q1 Virtual Investor Summit on March 8.