EMERYVILLE, Calif. – NovaBay Pharmaceuticals, Inc. (NYSE American: NBY), a company specializing in eyecare products, has reported a 9% increase in net revenue for its eyecare segment in the second quarter and the first half of 2024, compared to the same periods in 2023. The preliminary net revenue for the second quarter was announced at $2.4 million, and $5.0 million for the half-year, with expectations for the full year’s revenue to reach approximately $10 million.
The growth is attributed primarily to heightened sales of Avenova-branded products through online channels, including Amazon (NASDAQ:) and Avenova.com.
According to Justin Hall, CEO of NovaBay, the company’s digital marketing strategies have been effective, with a significant increase in the number of Avenova subscribers on Amazon. This increase is quantified at 16% during the first half of 2024, and a notable 123% since the beginning of 2022.
Hall emphasized the importance of the subscriber base, which comprises about 23% of all online Avenova revenue for the first half of the year, in driving consistent sales and contributing to the company’s success. NovaBay’s focus on the U.S. dry eye market is supported by the positive reception of Avenova products, which is reflected in the 4.5-star average rating from over 14,000 customer reviews across online platforms.
NovaBay’s product lineup caters to various aspects of dry eye treatment, including the Avenova Lid & Lash Solution, an antioxidant-rich oral supplement, lubricating eye drops, a warm eye compress, and the i-Chek for eyelid health monitoring. NovaBay also offers the Avenova Allograft, an amniotic tissue product available through eye care professionals.
The company has also filed a registration statement with the U.S. Securities and Exchange Commission for a proposed offering of securities, which is yet to become effective.
This report is based on a press release statement by NovaBay Pharmaceuticals, Inc.
In other recent news, NovaBay Pharmaceuticals, Inc. has reported record sales for its Avenova line of products, noting a significant increase of over 20% compared to the previous year. The company’s first-quarter sales rose by 13%, primarily driven by online channels, thanks to the expanded Avenova product range. The company also plans to capitalize on the anticipated growth of the US dry eye market, projected to reach $4.7 billion by 2030.
Despite the positive revenue growth, NovaBay’s financials revealed a net loss of $3.6 million for the quarter. However, the company managed to maintain a steady gross margin of 68% and reduced its sales and marketing expenses by half. NovaBay’s recent developments also include a co-marketing agreement with Eyenovia (NASDAQ:) and a strategy to convert physician-dispensed channel customers to over-the-counter sales, particularly through Amazon.
Despite the net loss, the company’s record sales and strategic partnerships indicate a focus on growth. NovaBay is expected to update on its progress in the next quarterly call scheduled for August.
InvestingPro Insights
As NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) continues to navigate the eyecare market with its Avenova-branded products, the company’s financial metrics provide a broader context for its performance. According to InvestingPro data, the company’s revenue for the last twelve months as of Q1 2024 stood at $15.02 million, demonstrating a solid year-over-year growth of 11.49%. This uptick is slightly above the 9% revenue growth reported for its eyecare segment in the same quarter, indicating a positive trajectory across the company’s operations.
However, despite these gains, NovaBay’s gross profit margin remained robust at 53.86%, underscoring the company’s ability to maintain profitability in its core operations. On the flip side, the company has faced challenges as indicated by an operating income margin of -34.82%, reflecting ongoing expenses that outpace gross profits.
Investors should note the company’s stock performance as well. InvestingPro Tips suggest caution as the stock has experienced a significant decline over the last six months, with a 63.35% drop in its six-month price total return. Moreover, analysts do not anticipate NovaBay to be profitable this year, which could be a contributing factor to the stock’s poor performance over the last month, with a price total return of -22.91%.
For those considering an investment in NovaBay Pharmaceuticals, InvestingPro offers additional insights, including a total of 10 InvestingPro Tips that could help in making a more informed decision. To delve deeper into these tips and gain a comprehensive understanding of NovaBay’s financial and market position, subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
With the next earnings date scheduled for August 9, 2024, stakeholders and potential investors will be watching closely to see if the company’s strategies will lead to improved profitability and a reversal of the recent downward trend in its stock price.
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