Overview

• Healthcare product maker's Q4 revenue grew 48% yr/yr, driven by increased U.S. sales

• Company's Q4 net loss improved 25% yr/yr, reflecting better financial performance

• Q4 EBITDA loss narrowed 66% yr/yr, aided by cost management and operational discipline

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• U.S. SALES GROWTH - Q4 revenue increase was primarily driven by higher U.S. sales, attributed to new distributors selling company products

• INTERNATIONAL GAINS - Revenue also rose in Europe and Rest of World, partially offset by declines in Asia and Latin America due to timing of customer orders

• COST PRESSURES - Operating expenses increased, mainly due to inflation and salary-related increases in Mexico

Company press release: ID:nACS1G5h7a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue		$5.60 mln
Q4 Net Income		-$581,000
Q4 EBITDA		-$183,000
Q4 Gross Profit		$2.20 mln
Q4 Operating Expenses		$2.50 mln

Analyst Coverage

• Wall Street's median 12-month price target for Sonoma Pharmaceuticals Inc is $14.80, about 1,233.3% above its June 15 closing price of $1.11

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