Zomedica Corp. (ZOMDF) Earnings Call Transcript & Summary

Welcome to Zomedica's Fourth Friday at Four investor webinar on sales strategy and execution. Today, we're taking a focused look at how Zomedica's commercial engine works from the framework that guides every sales conversation to the team structure and tactics that turn the right product in the right clinic into a lasting customer relationship. Before we begin, I want to remind current and potential investors that we will be making various remarks about future expectations, plans and prospects that are considered forward-looking statements. There are risks that actual results may differ from these statements. We refer you to the safe harbor statement on screen or to the Risk Factors sections of our public filings which can be found on our website under Investor filings, EDGAR and SEDAR+. The statements are made as of today, July 24, 2026 and reflect our expectations as of today. Thank you for joining us for Zomedica's investor webinar series. We're excited to have you with us as we take a closer look at our company, our innovative product platforms and the passionate people driving our success. This series is designed to give you a deeper understanding of how we're delivering value to veterinarians and to our shareholders. At Zomedica, our mission is to deliver innovative diagnostic and therapeutic technologies that empower veterinarians to focus on what they love most, enhancing pet care and improving pet parent satisfaction. Equally important, we help vets with what they need most, streamlining workflow, increasing cash flow and boosting practice profitability. At Zomedica, our mission is guided by what we call our 5 pillars. These are core objectives that shape every decision we make about products and innovation. First and foremost, we aim to improve the quality of care for the pets. Equally important is enhancing the satisfaction of the pet parent, ensuring they feel confident and comfortable with the care provided. Our solutions also focused heavily on improving the veterinarians daily workflow, helping veterinary practices operate smoothly and efficiently. Additionally, we are committed to positively impacting veterinarian cash flow making sure our offerings are financially accessible and beneficial. Finally, our ultimate goal is to increase veterinarian profitability, providing products and solutions that help veterinary clinics grow and thrive financially. Now let's hear from Larry Heaton, Zomedica's Chief Executive Officer.

Good afternoon, everyone, and welcome. I'm Larry Heaton, Chief Executive Officer of Zomedica. Thank you for joining us for today's Fourth Friday at Four webinar. We appreciate you being here, and we appreciate your continued interest in and support of Zomedica. Today's session focuses on one of the most important dimensions of building a durable growth company, how we sell, not just what we sell, but how we build a commercial engine designed to match the right product to the right clinic and then turn that first engagement into a lasting Zomedica customer. In veterinary medicine, the sales process is different from many industries. Every practice has its own clinical profile, its own patient mix, its own workflow constraints and its own financial priorities. A one-size-fits-all approach simply doesn't work. What does work is a disciplined framework that helps our teams identify where we can deliver the most value and then execute with precision. That framework is built on the 5 pillars, which we showcased in last month's webinar, quality of care of the pet, satisfaction of the pet parent, veterinarian workflow improvement, veterinary cash flow improvement and improvement in veterinarian profitability. These 5 pillars guide the sales conversation, discovery questions and product recommendations that our teams make in the field. We've invested significantly in building a commercial organization that can execute against this framework at scale. Today, we have a multichannel direct sales force, field sales, inside sales, capital equipment specialists, professional services veterinarians, a dedicated equine team and a growing international presence, all coordinated under 1 commercial engine. Today, you'll see how that framework translates into a structured operation from our sales mission and strategy to the tactics and team design that drive execution to the performance results that demonstrate it's working. You'll also see how our sales organization has evolved alongside our product portfolio, growing from a single product start-up to a 5 platform commercial company. With that, I'll turn it over to Kevin Klass, our Senior Vice President of Sales to get us started. And at the end, we'll again engage in question and answers with those of you who are in attendance. So take it away, Kevin.

All right. My name is Kevin Klass. I'm the Senior VP of Sales here at Zomedica coming up on my 3-year anniversary. I've got 35 years of sales and marketing experience. About 15 of those years have been in diagnostic sales with end marketing with companies like Siemens, Johnson & Johnson and Abbott. And I've got over 20 years experience in the veterinary industry. Five of those years was with IDEXX. I opened Canada for them and then joined worldwide marketing. And I have over 12 years of experience with Heska, where I was the VP of Sales and help drive significant growth up until the time that they were purchased by Amtech. So I'm glad to be here, and 1 of the reasons I joined Zomedica really is I loved my time at both IDEXX and Heska. And it was an early stage in a company that was growing. And I saw the same opportunity to join a publicly traded company here with great products and a group of people that were really dedicated to success. And it's really no secret that I made a personal -- significant personal investment really in the stock because I believe in the success that we can have. I did something similar at Heska, and I'm looking forward to that turning out just as well for me here at Zomedica. So now you're going to find out a little bit more about our approach to the market and our sales strategy.

We've organized today's session around 5 areas that together form 1 commercial engine. First, the sales mission, delivering the 5 pillars in every clinic. Second, sales strategy, how we establish a foothold and expand within the account. Third, sales tactics, leading a direct sales force. Fourth, the sales organization and its evolution over time. And fifth, sales performance over time. Let's begin with the mission. Our mission is to show every clinic how our products deliver on the 5 pillars that matter most to their practice. No 2 clinics are alike. Practice type, location, size, staffing and current capabilities, all vary. So we ask a simple question against each pillar to find where we deliver the most value, win the clinic with the best fit product, delight that customer, then expand our footprint with more of the portfolio. Quality of care of the pet? How can we help you improve your practice? Satisfaction of the pet parent? How can we keep your clients happy, veterinarian workflow. -- what slows the team down, veterinarian cash flow? Where can we help improve your revenue and veterinarian profitability? How can we help you improve your margins? That's how we sell. Every conversation starts with these questions. [indiscernible] anywhere, or else. Faster time to diagnosis. -- fewer repeat visits, running them in-house captures pharmaceutical revenue at diagnosis, driving profitability and happier clients. The TRUVIEW AI-enabled digital microscope and telepathology [indiscernible] freeze technician time on every case, easing staffing pressure. Optional pathologist reads come back in about 2 hours for faster, more confident answers. The Vet Guardian Plus system is the only touchless patient monitor available. It opens a new service line revenue stream while freeing staff time, less patient stress, safer recovery and reassurance for the pet parent. The Pulse vet Shockwave system is the most proven shockwave therapy on the market, driving rehabilitation outcomes and high client satisfaction without the pitfalls of long-term drug therapy and Vetagel is a fast-acting hemostatic gel that stops surgical bleeding in seconds, saving time and improving outcomes across dental, [indiscernible] and more complex surgical procedures. Our sales strategy follows a clear 3-phase model. Phase 1 is landing a foothold, closing a single high-fit platform with clear return on investment. For example, the Pulse Vet device in an equine practice or leading with VETIGEL, a low barrier consumable every clinic needs to open the door and build the relationship first. Phase 2 is expanding utilization, delighting the customer and driving usage through training, protocols and support, so the product proves its value. Phase 3 is cross-selling across the pillars. Once the clinic sees results from 1 product, the conversation naturally expands to the rest of the portfolio. equine proves it. We penetrated the equine market with the Pulse system and on major share and customer relationships which we leverage to produce rapid uptake of equine TRUFORMA devices. Now we're extending that foothold with new True forma assays and additional Equine products. Our portfolio was built by acquisition, PulseVet, Assi, TrueView, Vet Guardian Plus and the Qorvo biotech platform. The U.S. addressable market for recurring sales exceeds $2 billion, and management targets a business exceeding $100 million with expansion inside existing accounts as a primary lever. Not every product is the right first conversation for every clinic. We've mapped the portfolio to specific practice types. The PulseVet system is the best fit for sports, equine and orthopedic companion animal practices plus rehab clinics. The Truforma platform is ideal for internal medicine, endocrine and equine practices as well as general practitioners and fee line clinics looking to add new in-clinic tests. The TrueView scope fits clinics short on staff or running high volumes of cytology and hematology cases. The Vet Guardian Plus system is suitable for any practice and especially valuable for those handling high surgical volume, isolation cases, rural care or hospitals offering major surgery, ICU or overnight patient stays. The ACC loop is designed for chronic pain, inflammation and rehabilitation available through distributors and online for at home care and [indiscernible] is an easy consumable entry point for any click doing surgery or dental work. Our portfolio combines capital equipment with recurring revenue products. These sales campaigns require different expertise, which is why we have developed specialized roles while keeping the account relationship coordinated. Our direct sales force operates across 3 primary channels. Field sales includes account managers who find and grow accounts and capital equipment specialists, handling ROI, financing and closing led by industry veteran area sales directors and backed by a dedicated equine team deep clinical expertise and strong industry relationships. Inside sales provides coverage for open and unassigned territories, handling lead follow-up, consumable reorders, upgrades and new sales campaigns. Professional services veterinarians provide peer-to-peer education, case review and webinar support that builds credibility and utilization. They are also responsible for Zomedica's relationships with veterinary schools, and deploy in the field to work with account managers for additional training and meetings with local veterinarians. In terms of segmentation and targeting, we've designed low-risk entry points. The TRUFORMA device is placed with no upfront capital required. The clinic pays only for assays. The TrueView AI microscope is a simple annual contract and capital equipment like the Pulse vet system leads with in-house demos and financing when needed. We target companion animal hospitals with high hospitalization or surgical case loads for Vet Guardian plus monitoring, TrueView microscope cases and Shockwave Equine practices are targeted for the PulseVet system and the expanding library of Truforma Equine ACTH assays. -- all channels and roles work together to begin with the right product fit and deliver the most value to the customer. The commercial organization has evolved through 3 stages: Stage 1 2021, a small commercial team. the Pulse Vet acquisition established our foothold in Equine with the early TRUFORMA launch close behind. Stage 2, 2022 to 2023, the team built out. We added capital equipment specialists, a Vice President of Corporate Accounts and an inside sales group for the U.S. and Canada. Account managers began selling TRUFORMA assays into equine accounts, Stage 3, 2024 through 2027 planned optimized hiring with clear success criteria and fit specialized coverage and increasing productivity per territory in both capital and recurring revenue with roughly the same head count. In terms of footprint, we have direct sales across 4 U.S. regions, inside sales covering the U.S. and Canada plus a growing international distributor network. -- field and inside sales reached the U.S. and Canada with distributor coverage into Canada, Japan, the U.K., Europe, Latin America, and other developed markets. Our deep Equine presence built on our Pulse pet business is now expanding with TRUFORMA and new Equine assays in development. Revenue has grown from $4.1 million in 2021 to $32 million in 2025, a record year, representing 17.6% year-over-year growth. year-end 2025, liquidity stood at approximately $53 million. This growth tracks directly to product launches and channel expansion and improved sales force productivity. -- the Tru forma portfolio now includes 11 launched assays spanning 16 diagnostic tests. VetGuardianPus was added to the platform. The TrueView AI microscope was launched. PulseVet and ASIC are expanding internationally. Let's bring it all together. Mission, 1 framework that guides every product, every discovery question and every KPI strategy. win with a single platform solution that delivers a clear return on investment, then expand into a multi-platform account. Tactics. -- field sales, inside sales and PSVs consistently reinforced the 5 pillars in every customer interaction. Organization evolve from a single product startup into a 5 platform commercial company performance. Revenue grew from $4.1 million to $31.1 million between 2021 and 2025. We grew from a single platform to 5 integrated platforms giving us the breadth to fully deliver on our 5 pillars. Now let's hear from Kevin Klass who leads Zomedica's sales organization for a closer look at how the team executes.

Important to me in the sales organization, we've got our VP of Corporate Accounts. We've got the area sales directors. And on those 4 teams, we have capital -- a capital equipment specialists as well as account managers. We have a great professional service veterinarian team, and equine team to support our equine efforts an inside sales group as well as an international group. And you're going to hear more about the international team next month. But for now, why don't you hear from some of the folks within the organization.

Hi. I'm [indiscernible], I lead our corporate account team here at Zomedica. My focus is on our relationships with corporate multisite veterinary aggregators and group purchasing organizations across the country. So these are the large consolidated groups that own or manage dozens, sometimes hundreds of individual clinics. What that means day to day is I'm working on enterprise level agreements. A single agreement can open the door for an entire network of practices at once. That's really the core value of the role. It changes the scale of what is possible. But signing the agreement is really just the starting point. Once we're in, I work closely with their leadership to identify where Zomedica portfolio makes the most sense for the business and then I coordinate closely with our excellent area sales directors and talented area account managers on the ground to help adoption actually spread. For me, corporate accounts are really about scale. One agreement with the consolidator or GP opens the door across a dozen of clinics at once, and that is exactly when our 5 pillars start working in our favor. Why this matters so much? At this level, trust doesn't just help it compounds. When a corporate account group sees real measurable value from Zomedica products, that success becomes a restandpoint for every other conversation we have with them. Leadership isn't evaluating us 1 at a time. They're evaluating us as a strategic partner across their entire network of hospitals. So 1 stronger doesn't just open the door, it changes how the whole rest of the portfolio gets received. -- and that's the multiplier effect I'm chasing every day. It is to build enough credibility with the first win that the next conversation and the 1 after that gets easier and faster across every location under their umbrella. And that's what makes it such an exciting time. As our portfolio continues to grow with new products and enhancements coming down the pipeline, I'm looking forward to bringing even more value to these corporate partners and giving our teams even more reasons to company on attention and win mind share across every group we work with.

Hi. I'm Tammy Pierce. I'm the Area Sales Director for the Midwest region at Zomedica, which covers from Minnesota Sami. I've been in the industry for over 25 years. And prior to that, I was a license vet tech in practice. I lead a team of 7 account managers and on capital equipment specialist. I make sure our approach to every practice starts the same way. We need to go for the veterinary practices, immediate need with 1 of our products. And then from there, I can coach them to continue to introduce the rest of the Zomedica product line. What I love about the way we operate at Zomedica is we have a consistent approach. It's never 1 size fits all. we find the clinics goals, challenges and priorities, and we meet them where they're at. Often 1 of our products will get us in the door, but that product solves an immediate need. This gives us an opportunity to learn more about the practice and show them other ways that we can help. That's where the strength of the Zomedica ecosystem really comes in. As we continue to educate and build trust, we can introduce additional solutions that help improve patient care, increase efficiencies and support practice growth and ultimately drive profitability. The 5 pillars gives us a road map for these conversations. They help us expand the relationship beyond a single product and position Zomedica as a complete solution partner. The goal is for the clinic to see the value of the entire ecosystem, not just the product they originally purchased from us.

Hi. My name is Mark Murad, and I am a capital equipment specialist here at Zomedica, and I'm excited today to share with you what I do on a day-to-day basis that encompasses part of our 5-pillar strategy here at Zomedica. As a capital equipment specialist, my focus is to help veterinary practices, evaluate and implement larger capital equipment and technology investments can have a significant impact on both patient care and practice performance. My responsibility is to deliver deep expertise across our capital equipment portfolio and work closely with clients to build both clinical and financial justification for their investment. My role is not just to explain the technology, but to help practices understand how the equipment supports better outcomes, improved workflow and long-term business growth. The ongoing support offered by Zomedica once a purchase is made doesn't stop there. I partner closely with our account managers and professional services veterinarians to ensure the customer continues to realize value from their investment and to identify additional opportunities where Zomedica can support the practice. Capital equipment often serves as the entry point into the broader Zomedica. -- disease and investments require a high level of trust. They create a strong foundation for a long-term partnership. That's exactly how our 5-pillar strategy is designed to work. A practice may initially engage with us through a major equipment purchase -- but once they experience the value, service and support to Medica provides, they're often much more receptive to additional solutions across our portfolio. In many ways, capital equipment opens the door and the portfolio connection strengthens and expands relationship over time.

Good afternoon. My name is Brandon Reeder. I'm an account executive with Zomedica. I cover North Texas which is from the Hill Country, all the way to Louisiana border all the way out to the Big Bend area and up into the Panhandle. Our role is Zomedica is to take care of accounts, from small practices to larger practices to corporate groups, mixed animals, some equine. So there's a whole gamut of different clients that we have. And my job is to basically take them from the initial steps of maybe having 1 product that Zomedica can offer that will solve their needs and then in time, create the relationships to where there's an opportunity to sell more products to them. Case in point, the last -- the end of last quarter, I sold 2 Pulse events for total revenue close to $70,000, $80,000 to 2 clients that had purchased -- 1 had purchased a bet Guardian our TESLA EPR monitor. And then I was able to talk to him about having a pulse bid into their rehab into their musculoskeletal therapy siler practice. The other 1 was a true former client who got the device for free, they paid the cartridges, but I was able to talk her into buying [indiscernible]. She's mixed animal. She has a large equine background. -- but I also talk to an [indiscernible] you can very much fit into her small animal side and probably more volume there than even in our large animal side. So our job is to basically go and meet with the clinics. -- find out where they're at, meet them where they are and then also progress them further. So level we do here. With Zomedica, we have so many different options to be able to, well, I like to call it and sells get hooks into people -- the more hooks I can get into you, the harder it is for you to leave. We meet the practices where we are where they are. they're just wanting some point-of-care options with a true format that solves some needs for them. They don't want to have to wait. They want to be able to prescribe the day of doing testing and things like that, would they have true format. -- if there's people who have large rehabs and they're into -- they may have a laser or some other therapeutics. We have PulseVet for that. TrueView for folks who are sending a lot out with cytology and things of that nature, saving some money. So we meet our patients where we are. We coordinate with our corporate accounts. We coordinate with our capital equipment specialists. Like there's a huge team here. There's a lot of support that we have to be able to draw on the expertise of the people from multiple backgrounds across the network to be able to make the solutions fit for that clinic for their patients. It's wonderful having a group and having a backing and having the ability to have folks that you know you can count on them when there's questions or there may be an issue that may be a little bit nuanced we can find solutions to help them out again to meet our clients.

Capital equipment specialist here at Zomedica. I bring in deep product and commercial expertise for our capital equipment lines. I help practices evaluate a bigger technology investment, looking both at financial and clinical cases. I then get to partner with our account managers, so the relationship doesn't stop with 1 product. capital equipment is often the door of banner. It is a big decision. So once the practice trust us enough to make that investment, they're much more open to the rest of what the Medica offers. That is exactly how the 5 pillars are designed to work. One high-value product earns the trust and then the ecosystem takes over.

Hello. My name is Scott. I'm the capital equipment specialist in the Central region. I've been in the animal health industry for 20-plus years now, and I'm proud to be approaching my 4-year anniversary with Zomedica. My role is capital equipment specialist is to help practices evaluate larger investment by uncovering solutions we can provide clinically and financially. -- work in coordination with my area sales director, our account managers and our professional service veterinarians throughout the entire process to ensure the customer is supported and very successful with their purchase. Capital equipment is a big decision. Once customers trust us enough to make that investment and see the commitment we show in providing solutions clinically and financially, they are much more open to the rest of our portfolio, which is exactly how the 5 pillars are designed to work.

I'm Dr. Kim Ketan, 1 of the 4 professional services veterinarians atamedica. Prior to joining the organization, I spent 20 years in clinical practice in both the United States and the United Kingdom. As a member of the PSV team, I serve as a clinical and technical experts supporting veterinarians, veterinary practices and a commercial team in the use of Zomedica's diagnostic and therapeutic products. I also act as a liaison between customers, sales, marketing, research and development and key opinion leaders to advance product adoption and improve patient outcomes.

As a PSV, I provide technical and clinical guidance on product use, treatment protocols and case management to veterinarians, their staff and the Zomedica sales team. In order to reach veterinarians, I deliver veterinary education through presentations wet labs, webinars, CE programs and conferences. Supporting the sales team comes through addressing clinical question and demonstrating product value. The initial and continuing education of the internal sales and customer-facing teams on disease states and product applications is one of the most fulfilling parts of my position. Furthermore, I continually collaborate with marketing to develop scientifically accurate educational content and build relationships with key opinion leaders, specialists, teaching hospitals and industry partners. Representing Zomedica regional and national veterinary conferences, trade shows and industry events is an exciting way to share our tech forward products on a larger scale with personal interactions.

My name is Jessica Deere. I am the account manager for New York. I have Upstate New York, Western Massachusetts and all of Connecticut. I have been in the veterinary industry for about 20 years now. What do I do on a daily basis, I prospect I look for leads, cold call, I called e-mail. But most importantly, I look to solve problems for the veterinarians in the industry by using our products. So I do a lot of relationship building, kind of see what is the problem that we could solve at the veterinary hospital with 1 of our products and how we can help them health the veterinary technicians and most importantly, bring better care to the pets at an affordable price. So that's demonstrations, installs, lunches, education, anything we can do to help the veterinarians learn about our products and then ultimately, obviously, sell the products to them.