Biotricity, Inc. (NASDAQ:BTCY) Q1 2024 Earnings Call Transcript

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So distribution partners have people in, they essentially have 50 state coverage. But when you do a distribution partner of size, you have to work with different groups within that division and different reps. And for us, we focus on areas where we’re not covered. So I think what we will, what we can say, and how I can answer it is that, look for us over the next couple of quarters that as we work with some of the relationships that we’ve made, how going to expand that state coverage, and we will announce that and notify everybody. And our goal, of course, is to get to 50 states as quickly as possible and focusing our primary, like our direct sales efforts in the areas that we have the most opportunity.

Kevin Dede: Okay. Couple of financial questions, maybe John, will chime into. The gross margin, absolutely great sequential progress on that. I’m wondering how you think we should see it from a sustainable perspective. Is I know John mentioned approaching, I think, the – like the 70% margin, I think I understood that. I’m just wondering what sort of time frame we might expect that to happen.

Waqaas Al-Siddiq: So I think the piece that is happening is that before we weren’t even identifying this stuff. So as you see that we get a handle on these things, we’re going to provide more and more color. The thing is, as we’ve announced in the last few press release, our revenue mix of SaaS versus device sales – device sales have a different margin and SaaS has had consistent margin, right, of between 70-ish percent. So we will start announcing that and in terms of how long will it be, I would say that eventually, I think once you are 99% of your revenue being SaaS-related and 1% being device, essentially your margin steady state rate is going to be your SaaS rate. We still have about 9% or something around that revenue that we have to build up towards on the SaaS side to get to that steady state.

And can we predict and tell you when we expect to do that? I would say no, but I think that going from now forward, every quarter, we will announce that mix. And you will see that margin creep closer to that as a steady-state margin.

Kevin Dede: Okay. On the – just on the OpEx side, cost controls – and you eliminated almost $1 million of OpEx from the March quarter. I’m wondering if you think this reduced expense level is sustainable?

Waqaas Al-Siddiq: So what we’ve done, and I think that this is a fantastic quarter, and I think it’s going to be indicative of what we are doing going forward. so cost-cutting, I wouldn’t call it about cost-cutting, what we have done is we have optimized our operations to focus on a commercial team, which is focusing purely on sales. And a corporate team, which is focusing on account management and operations and delivering services at a certain efficiency level. We grew to a size and everybody, there’s these always milestones for companies, and they are I think, milestones for reasons. And we achieved a milestone, which we were at a $10 million revenue run rate and it allowed us to basically look at the organization and apply more processes and procedures.

So moving forward, the ratios that we are seeing that are in this past quarter, we expect to be able to continue those. But if we’re growing, our costs and our expenses are going to grow, but the ratios we expect to be maintained. Thank you.

Operator: Thank you. There are no further questions at this time. Gentlemen, we’ll turn the conference back over to you for any additional or closing remarks.

Waqaas Al-Siddiq: Thank you, everybody, for joining our conference call. If there are any other questions that pop up or if you guys have any other information that you are looking for, please feel free to reach out to us, we are always available. You can reach us via our website or through e-mail or through LinkedIn or any of our social channels. Thank you again, and we’re very excited about the rest of the year.

John Ayanoglou: Thank you so much.

Operator: Thank you. That does conclude today’s conference. We thank you for your participation. You may now disconnect.

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