Shares of Zomedica (ZOM 2.06%) were up by 10% Monday morning after being up as much as 21.1% right after the opening bell. The company's move up was more of a reactionary one, as the stock hit its lowest point since Jan. 5 on Friday, falling to $0.19 a share. The stock has a 52-week low of $0.15 and a 52-week high of $0.41 and is up more than 23% so far this year.
Zomedica, a veterinary health company that sells products for horses, dogs, and cats to clinical veterinarians, has been frustrating growth investors for a while, but some may have overreacted to the bad news in its fourth-quarter and full-year earnings report, which it released March 15.
The good news in the report is the company is boosting revenue at an impressive rate, rising 51% year over year, to $6.2 million in the quarter and by 361% to $18.9 million for the year.
The bad news is that Zomedica hasn't been and still isn't profitable. However, its $17 million loss for the year represented an 8% improvement, and its loss of $1.97 million loss for the fourth quarter was an improvement of 40.4% over the same period last year.
The reason for the surge in revenue was attributed to a full year of PulseVet sales (the company was acquired in 2021 for $70.9 million) and the addition of the recently acquired Assisi products.
The company also appointed a new CFO on Friday, Peter L. Donato, who is replacing the retiring Ann Marie Cotter. The key for Zomedica will be whether it will be able to curtail administrative costs enough to continue to move closer to making a profit. At its current price, investors may feel that the company's obvious risks may be worth it because of its impressive growth.