324% Sequential Revenue Growth in Q1 2023 Compared to Q4 2022 for its Digital Medicine Services.
● | Total Q1 2023 revenue of | |
● | Expanded gross margin in Q1 2023 to 53% resulting in a 300-basis point increase in gross profit compared to the Q4 2022 | |
● | Digital Medicine Subscription and Services Recurring Revenue combined grew by 168% in Q1 2023 compared to Q4 2022 | |
● | Shareholders are invited to an upcoming webinar to hear from current physician customers that are actively engaged and utilizing the QHSLab Digital Medicine Platform in their practices. | |
First Quarter 2023 Financial Results
*
- Revenues for the three months ended
March 31, 2023 , were$352,799 , an increase of$85,082 over revenues of$267,717 reported in the fourth quarter of 2022 due to growth in both Digital Medicine Subscriptions and Digital Medicine ISP sales, which the Company initiated in the third quarter of 2022. - First-quarter 2023 sales of Digital Medicine Subscriptions were
$20,461 compared to fourth-quarter 2022 sales of$12,350 ; first-quarter 2023 sales of Digital Medicine ISP Services were$34,467 compared to sales of$8,137 in the prior quarter. Digital Medicine ISP Service sales grew by 324% sequentially in Q1 2023 compared to Q4 2022. - The Company generated a gross profit of
$187,342 , or a gross margin of approximately 53.1%, in the first quarter of 2023 compared to a gross profit of$135,015 , or a gross margin of 50.4% in the fourth quarter of 2022. The increase was primarily attributable to the larger base of sales as well as the transition to higher margin software as a service (SaaS) income. - Net operating loss (NOL) of
$120,758 in Q1 2023 decreased by 17.1% compared to$145,701 in Q4 2022 due to higher gross profit margin and top-line revenue.
Operational Highlights
We are currently generating digital medicine subscription recurring revenues from a small customer base of 11 practices and digital medicine service revenues are being generated from 14 medical practices. Together with these physician customers we have proven the business model, customer reimbursement profile and patient satisfaction achieved by our QHSLab Digital Assessment Tools, providing a strong platform to expand our digital medicine offerings to a larger base of primary care providers. We commenced more aggressive customer sales and marketing efforts this past quarter targeted at the key primary physician market.
We expect Digital Medicine ISP service revenue to grow by approximately 100% in Q2 2023 with the addition of new physician customers currently in our pipeline.
Revenues from our allergy diagnostic and allergen immunotherapy business segment increased by
We experienced a 300-basis point improvement in our gross profit margin in Q1 2023 compared to Q4 2022 and believe that gross profit margins will continue to expand by approximately a further 500 basis points during fiscal 2023 due to growth in higher gross profit margin Digital Medicine SaaS income.
QHSLab’s Scientific and Advisory Team received acceptance from the
Meet Our Physician Clients
We invite our shareholders to register for a live webinar on
REGISTER FOR THE WEBINAR HERE https://www.qhslab.com/physician-webinar-may-24/
About
Forward-Looking Statements
Certain matters discussed in this press release are ‘forward-looking statements’ intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding trends in the marketplace, future revenues, future products, and potential future results and acquisitions are examples of such forward-looking statements. Forward-looking statements are generally identified by words such as ‘may,’ ‘could,’ ‘believes,’ ‘estimates,’ ‘targets,’ ‘expects,’ or ‘intends,’ and other similar words that express risks and uncertainties. These statements are subject to numerous risks and uncertainties, including, but not limited to, the timing of the introduction of new products, the inherent discrepancy in actual results from estimates, projections, and forecasts made by management, regulatory delays, changes in government funding and budgets, and other factors, including general economic conditions, not within the Company’s control. The factors discussed herein and expressed from time to time in the Company’s filings with the
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