MedAvail Holdings, Inc (MDVL) Misses Q2 EPS by 2c

MedAvail Holdings, Inc (NASDAQ: MDVL) reported Q2 EPS of ($0.32), $0.02 worse than the analyst estimate of ($0.30). Revenue for the quarter came in at $5 million versus the consensus estimate of $4.8 million.

“We are pleased with our second quarter results which reflect continued momentum, as our sales grew 118% on a sequential basis,” said Ed Kilroy, Chief Executive Officer of MedAvail. “We are looking forward to bringing our Retail Pharmacy Services to the Florida region in the second half of 2021, and we remain excited about the opportunity to continue adding value to our current partners, as evidenced by our recent expansions in several key accounts. We are also pleased to announce two significant strategic endeavors: a new Retail Pharmacy Services partnership with Zipdrug, a subsidiary of Anthem, and a new Pharmacy Technology integration with Epic’s pharmacy system software.”

Mr. Kilroy continued, “Excluding the one-time revenue recognition adjustment associated with a large customer agreement in 2020, we expect to deliver revenue growth in excess of 100% in 2021 and to maintain this topline growth rate in 2022, assuming the world returns to its pre-Covid levels in due course. This growth is reinforced by demand we see for our offerings, ongoing expansions into new geographies, and our new strategic partnership opportunities.”

GUIDANCE:

With the healthcare industry gradually returning to a more normal environment, MedAvail saw Retail Pharmacy Services net revenue growth of 7% in July compared to June. However, primarily due to lingering COVID-19 uncertainties, we have encountered unanticipated headwinds with the timing of Boards of Pharmacy regulatory approvals and we are cautious that clinics will return to pre-Covid volume levels in the second half of 2021. Additionally, as we have enhanced our target clinic analytical capabilities, we have identified 10 clinics that do not meet our expectations going forward as they have begun to transition from the height of the COVID-19 period. We have decided to exit these sites prior to 2021 year-end and redeploy our valuable resources into clinics that more closely fit our target model. As a result, MedAvail has revised its 2021 net revenue guidance expectation from the prior range of between $27 to $31 million to at least $21 million.

The minimum number of new clinics MedAvail expects to deploy in 2021 remains unchanged at 45. We feel that all of the clinics in our current pipeline are aligned with our key criteria. Demand for our solution remains strong in the states where we currently are operating including Arizona, California, Michigan, and Florida.

For earnings history and earnings-related data on MedAvail Holdings, Inc (MDVL) click here.

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