MedAvail Holdings, Inc.

For Q1 2023, MedAvail reported total revenue of approximately $620,000, up 134% versus $265,000 in the comparable 2022 period and up 143% versus $255,000 in Q4 2022 pharmacy technology revenue. Gross profit margin was 41.5%, compared with full-year 2022 gross margin of 47%. Total pharmacy technology operating expenses were $5.3 million, down from $5.5 million a year ago, and adjusted EBITDA loss was $3.7 million versus a $4.4 million loss in Q1 2022. Cash and cash equivalents were $19.5 million at quarter-end, including $676,000 of restricted cash. Guidance was unchanged: 25 net new dispensing MedCenters in 2023, 57 cumulative MedCenters by year-end, approximately $3 million in full-year revenue, and full-year gross margin in excess of 60%.

Mark Doerr said the company is now focused solely on the pharmacy technology business after selling SpotRx to CVS, and he framed the strategy around solving pharmacy labor shortages and medication-access problems through point-of-care dispensing. He emphasized early traction in the pipeline, the importance of the Epic Willow integration, and regulatory progress such as Colorado's new law supporting remote dispensing. His tone was constructive and confident, repeatedly saying the company is on track and that the current year should lay a foundation for future growth and profitability.

Ramona Seabaugh said Q1 revenue was $620,000 and that gross margin of 41.5% was in line with expectations, while the company still expects full-year gross margin above 60% versus 47% in 2022. She noted pharmacy technology operating expenses of $5.3 million and adjusted EBITDA loss of $3.7 million, both improving versus the prior year period. On cash, she said MedAvail ended Q1 with $19.5 million and used $2.8 million in cash for operations excluding discontinued operations, with full-year cash usage from the SpotRx wind-down expected to be about $6.5 million. She also said current cash should fund operations at least into 2025, when the company believes it can reach profitability.

Analysts asked about the 25-unit deployment target, and management said the pipeline is roughly two-thirds new customers and one-third existing customers, with urgent care slightly ahead of primary care in traction. They also asked about geography and management said it is focused mainly on Texas, Florida, and Louisiana, while still pursuing partners in other states that allow remote dispensing. On integrations, management said Epic and McKesson are key today, expects one or two more full integrations by the back half of 2023, and said Encora should help accelerate that work. On Oak Street, management would not comment on active talks but said there could be an opportunity to re-engage given the prior relationship and the way those clinics were designed.