Overview

• US fertility clinic operator's Q1 revenue rose 23% yr/yr, driven by organic clinic growth and acquisition

• Net loss from continuing operations widened to $5.5 mln, impacted by non-cash warrant reclassification

• Company eliminated all Series C-2 Preferred Stock and warrant liabilities

Outlook

• INVO Fertility says it will focus on organic growth and disciplined fertility clinic acquisitions

• Company expects favorable long-term demand trends in fertility care to support growth

• Company aims to integrate and grow its current clinic base while expanding its geographic footprint

Result Drivers

• ORGANIC CLINIC GROWTH - Co said revenue growth was driven by initiatives at existing clinics, particularly in Georgia

• ACQUISITION CONTRIBUTION - Partial-quarter revenue contribution came from the acquisition of Family Beginnings, expanding the clinic network

• OPERATIONAL INVESTMENTS - Higher personnel and administrative costs from investments to support expansion weighed on adjusted EBITDA

Company press release: ID:nGNX1NDvJz

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$5.50 mln
Q1 Adjusted EBITDA		-$1.26 mln

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for INVO Fertility Inc is $20.00, about 1,233.3% above its June 18 closing price of $1.50

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