Biotricity (NASDAQ:BTCY) Founder and CEO Waqaas Al-Siddiq said the company has reached profitability and is looking to expand its cardiac monitoring platform beyond diagnostics into disease management and implantable device monitoring.
Speaking at a company presentation, Al-Siddiq described Biotricity as a “smart cardiac monitoring company” focused on electrical issues of the heart. He said the company’s core product is a cellular-enabled cardiac monitoring device that continuously collects and analyzes patient data, transmitting information in real time when it detects an anomaly.
CEO Says Company Has Reached Profitability
Al-Siddiq said Biotricity’s trailing 12-month revenue is about $16 million and its forward-looking revenue is $18 million. He said the company is profitable as of March, with gross margins around 82% to 83%, and expects margins to remain stable.
He also said Biotricity has a retention rate of about 92%, which he characterized as an indicator of recurring revenue durability. According to Al-Siddiq, the company has achieved economies of scale while maintaining its R&D, commercial team and product pipeline.
In response to an audience question about break-even timing, Al-Siddiq said, “We are profitable. We’re break even, cash flow positive, EBITDA positive.” He added that days sales outstanding were 22 days.
When asked about historical operating losses and cash burn, Al-Siddiq said those figures were backward-looking. “We’re profitable as of March. Forward-looking, we’re profitable,” he said, adding that the next quarter should either be operationally positive or “right on the edge.”
Subscription Model Drives Revenue
Al-Siddiq said Biotricity’s business model is built around providing cardiology practices with a device and reporting package that allows physicians to bill insurance directly. He said physicians pay Biotricity a flat monthly subscription fee of about $250 per device, while average reimbursement per monitored patient is about $500.
He contrasted Biotricity’s model with outsourced cardiac monitoring services, where he said physicians may receive about $25 for reading a report while waiting two to three weeks for data to be returned.
“We provide the device and the reporting in one package,” Al-Siddiq said. He said a device can be used on about two patients a month and lasts for two years, creating what he described as an annuity-like revenue stream for the company.
Al-Siddiq said most of Biotricity’s revenue is becoming subscription-based software-as-a-service revenue, while hardware sales are becoming a smaller percentage of the mix. He said the company expects margins to reach a steady state around 84% to 85% as subscription revenue grows.
Expansion Into Disease Management
Biotricity is currently focused on the ambulatory cardiac monitoring market, which Al-Siddiq said is about $5.5 billion. He said the company plans to expand into disease management and implantable device management over the next two to three years, using its existing cardiology customer base.
Al-Siddiq said Biotricity has about 2,500 physicians using its product across 35 states. He said the company plans to upsell disease management and implantable monitoring tools to those customers rather than shift away from ambulatory cardiac monitoring.
He said disease management revenue has already begun appearing in the company’s platform, with about $500,000 last year. Biotricity expects about $1 million from disease management this year and roughly $100,000 from the implantable side, according to Al-Siddiq.
Longer term, Al-Siddiq said the company expects disease management and implantable monitoring to each grow to the same size as its ambulatory cardiac monitoring business, though he noted that will take time.
Patient Engagement and Data Use
Al-Siddiq said Biotricity introduced a companion app to test whether patients would engage with digital disease management tools, even though the monitoring device itself does not require the app because it has built-in cellular connectivity. He said about 70,000 people have downloaded the app over the last three years.
He said patient engagement with the app helped support the company’s decision to invest in its disease management program. “What that tells us [is] that disease management is gonna work,” Al-Siddiq said.
Al-Siddiq also said Biotricity has recorded more than 2 trillion heartbeats and has monitored about 400,000 patients since launching its product. He said the company expects to monitor about 200,000 patients this year.
In response to a question about whether the company is using existing digitized data or discovering new data, Al-Siddiq said Biotricity has discovered new data due to the scale and sampling rate of its platform. He said the device samples at 1,000 times per second, compared with 200 times per second in a hospital setting. He also said the company is conducting clinical studies with ResMed to evaluate whether cardiac and sleep study data can be collected simultaneously.
Competition and Sales Expansion
Al-Siddiq described Biotricity’s competitive positioning as a simplification of cardiac monitoring workflows for cardiology practices. He said traditional Holter monitors, extended patch monitors and patch monitors with connected phones often involve different processes, reimbursements and reporting timelines.
He said Biotricity’s product can replace multiple technologies with one device and allow physicians to bill across different monitoring modalities. “Our competitive advantage is simplification of workflow,” Al-Siddiq said, adding that the company’s device is a three-channel device that he said provides better clinical data.
Al-Siddiq said growth will depend in part on expanding Biotricity’s commercial team. He said the company is in 35 states that account for roughly 90% of the ambulatory cardiac monitoring market, but has only eight sales representatives.
He also said Biotricity is partnered with major group purchasing organizations, including HealthTrust, Vizient and Premier, which he said cover 90% of the U.S. hospital market. Those relationships make Biotricity a qualified vendor, he said, but the company still must sell directly into hospitals and practices.
“Now it’s really about investing in the commercial team,” Al-Siddiq said.
About Biotricity (NASDAQ:BTCY)
Biotricity, Inc (NASDAQ:BTCY) is a digital health company specializing in remote patient monitoring solutions across cardiovascular and chronic disease management. The firm develops and commercializes a patented wearable biosensor platform designed to capture continuous physiological data, including electrocardiogram (ECG) readings and heart rate variability. This integrated system combines lightweight, adhesive biosensors with cloud-based analytics and clinician-facing software to support early detection of cardiac arrhythmias and facilitate telehealth care delivery.
The company’s flagship offering, the Bioflux™ platform, comprises a small, single-use wearable device that transmits real-time data to a secure portal, where advanced algorithms analyze cardiac patterns and generate clinician alerts.
