Biotricity Inc

Good afternoon and welcome to Biotricity's Fiscal 2023 First Quarter and Full Year Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Deborah Chen, Investor Relations. Please go ahead, ma'am.

Good afternoon, everyone, and welcome to Biotricity's Fiscal 2023 Fourth Quarter and Full Year Earnings Conference Call. As a reminder, Biotricity's 2023 fiscal year ended March 31, 2023, so all figures presented for this period will reflect that end date. Earlier today, Biotricity issued its fiscal 2023 fourth quarter and full-year press release, which highlighted financial and operational results. A copy of a press release is available on the Investor Relations section of Biotricity's website. And full financials have been filed with the SEC on Form 10-K and posted on Egger at www.sec.gov. Before beginning the company's formal remarks, I'd like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risk and uncertainties that can cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake to update any forward-looking statements except as required. At this point, I'm pleased to turn the call over to Biotricity's founder and CEO, Dr. Waqas Al-Siddiq. Please go ahead.

Thank you, Deborah, and thank you, everybody, for joining us today for our 2023 Fiscal Year Conference Call. I'll cover our fiscal year financial and operational highlights and then turn the call over to John for discussion of our fourth quarter financials. I will then discuss our sales strategy and outlook and open the call for your questions. We finished the fiscal year on a strong note, driving revenue 26% higher year over year to $9.63 million, while our gross profit rose 19% to $5.4 million. While these solidly rising numbers show strong progress, I'm equally as pleased to report our decreasing numbers. We produced 26% robust revenue growth while reducing, yes, actually reducing our SG&A by 5% to $17.6 million. And that disciplined cost structure management, along with the strong growth across the board, enable us to lower our net loss by over a third, or 35.4%, down by $10.7 million to $19.5 million. We managed to accomplish all that while sustaining a healthy gross margin of 57%. which declined just 3% from a year ago, but for important strategic reasons that I will unpack in just a minute. As you can see, we are relentlessly in pursuit of positive cash flow, and our numbers demonstrate that we are making excellent progress towards that goal. It should be readily apparent that we are scaling our business as well. Now for our revenue and margins. Our revenue source is going to three buckets. First and foremost, we have technology fees. This is the recurring subscription service fees generated by our diagnostics and biosphere services. For fiscal year 23, 91% of our total revenue was comprised of technology fees, which rose a hefty 49% year over year at a 70% gross margin, which has been consistent at this level year over year for the past two years. In part, its strong growth reflects our extraordinary customer retention rate of 98%, which in one simple single number speaks volumes about our excellent customer and cardiology-friendly solutions, superior device hardware and tech services, ease of use, and superior diagnostics. We are continuing to strengthen this retention rate through continuous improvement and expansion of our usage and implementation of AI to strengthen automation and enhance our cardiac disease solutions. As a side note, I recently read that the more times the CEO says AI on an earnings call, the better the share price performs. I'm not so sure about that, but for our newer shareholders, I will point out that we've been actively discussing how Biotricity is deploying AI across our company from customer service to diagnostics for well over a year, and we have been actively developing AI for several years now. The most recent occasion was during our third quarter 2023 call, which was before Wall Street blew AI up to become the next big thing. Back to revenue margins. After technology fees, Our second revenue bucket is device sales. As it sounds, that is sales of our proprietary hardware, which, like our software, is all designed in-house. In fiscal 2023, device sales comprise 9% of our total revenue. We also have a third bucket called service-related and other revenue, which is entirely opportunistic. We do not book any revenue in this category in 2023 versus $750,000 a year ago, which demonstrates even further just how strong our fiscal 2023 revenue really was. As our technology fees have been so strong and our customer retention so high, we decided to lower the pricing on our devices to near and at times less than our cost. We did this opportunistically and to gain market share, lower the customer's net cost of entry into our biosphere, and to incrementally increase our recurring technology fees with its 70% gross margins. Like the old razor, razor blade sales strategy, it seems some principles in business are timeless. Our pricing strategy, along with solid recurring revenue gross margins and high customer retention, is continuing to produce the growth we planned. From a 70% gross margin on technology fees, our pricing strategy diluted our blended gross margin down to 57%. However, our device sales are earned and recognized up front. Further, we anticipate the technology fee component of gross margins to continue to grow, outpacing device sales and pulling the blended gross margin higher, all while our growth continues to scale and we capture increasing market share. With that, I will turn the call over to our CFO, John Iannoglou.