Psychemedics Corporation Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Psychemedics (NASDAQ: PMD), the leading provider of hair testing for drugs of abuse, has reported its Q2 2024 financial results. The company experienced a 15% decrease in revenue, from $5.5 million in Q2 2023 to $4.7 million in Q2 2024. The net loss increased to $0.8 million ($0.14 per share) compared to $0.7 million ($0.13 per share) in the same period last year.

For the first half of 2024, revenue declined by 12% to $10.1 million, with a net loss of $1.5 million ($0.26 per share), up from $1.1 million ($0.19 per share) in H1 2023. CEO Brian Hullinger attributed the revenue decline to lower hiring rates among clients but emphasized ongoing efforts to adjust operating costs and explore new markets and applications.

Positive

• Company maintains its position as the world's leading provider of hair testing for drugs of abuse
• Management is actively pursuing new markets and applications to offset revenue decline
• Operating costs are being adjusted without adversely impacting client services

Negative

• Q2 2024 revenue decreased by 15% year-over-year to $4.7 million
• Net loss for Q2 2024 increased to $0.8 million ($0.14 per share)
• H1 2024 revenue declined by 12% year-over-year to $10.1 million
• H1 2024 net loss widened to $1.5 million ($0.26 per share)
• Continued lower hiring rates by clients negatively impacting revenue

DALLAS, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Psychemedics Corporation (NASDAQ: PMD), the world’s leading provider of hair testing for drugs of abuse, today announced financial results for the second quarter ending June 30, 2024.

The Company’s revenue for three months ended June 30, 2024, was $4.7 million versus $5.5 million for three months ended June 30, 2023, a decrease of 15%. Net loss was $0.8 million, or $0.14 per share, compared to a net loss of $0.7 million, or $0.13 per share, for the three months ended June 2024 and 2023, respectively.

The Company’s revenue for six months ended June 30, 2024, was $10.1 million versus $11.4 million for six months ended June 30, 2023, a decrease of 12%. Net loss was $1.5 million, or $0.26 per share, compared to a net loss of $1.1 million, or $0.19 per share, for the six months ended June 2024 and 2023, respectively.

Brian Hullinger, President, and Chief Executive Officer, stated:

“Despite the decline in revenue due to continued lower hiring by our clients, we continue to adjust operating costs with no adverse client impact while actively pursuing new markets and applications.”

About Psychemedics Corporation

Psychemedics Corporation is the world’s leading provider of hair testing for the detection of drugs of abuse. The Company’s patented process is used by thousands of U.S. and international clients, including Fortune 500 companies, for pre-employment and random drug testing. Major police departments, Federal Reserve banks, schools, and other public entities also rely on our unique patented drug testing process. We strongly believe our drug testing method to be superior to any other product currently in use, including traditional urine testing and other hair testing methods. To learn more, visit www.psychemedics.com.

Use of Forward-Looking Statements

Cautionary Statement for purposes of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995: From time to time, information provided by Psychemedics may contain forward-looking information that involves risks and uncertainties. In particular, statements contained in this release that are not historical facts (including but not limited to statements concerning future business potential, including revenue stabilization, growth, new markets and applications for our hair testing solutions, and statements about operating costs may be “forward looking” statements. Actual results may differ from those stated in any forward-looking statements. Factors that may cause such differences include but are not limited to risks associated with the changes in U.S. and foreign government regulations, including but not limited to FDA regulations, R&D spending, competition (including, without limitation, competition from other companies pursuing the same growth opportunities), the Company’s ability to maintain its reputation and brand image, the ability of the Company to achieve its business plans, cost controls, leveraging of its operating platform, risks of information technology system failures and data security breaches, the uncertain global economy, the Company’s ability to attract, develop and retain executives and other qualified employees and independent contractors, including distributors, the Company’s ability to obtain and protect intellectual property rights, litigation risks, general economic conditions and other factors disclosed in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions, or circumstances on which any such statement is based.

Psychemedics Investor Contact:

Daniella Mehalik
VP of Finance
(800) 628-8073
DaniellaM@psychemedics.co

FAQ

What was Psychemedics 's (PMD) revenue for Q2 2024?

Psychemedics (PMD) reported revenue of $4.7 million for Q2 2024, a 15% decrease from $5.5 million in Q2 2023.

How did Psychemedics' (PMD) net loss change in Q2 2024 compared to Q2 2023?

Psychemedics' (PMD) net loss increased to $0.8 million ($0.14 per share) in Q2 2024, compared to a net loss of $0.7 million ($0.13 per share) in Q2 2023.

What factors contributed to Psychemedics' (PMD) revenue decline in Q2 2024?

Psychemedics' (PMD) revenue decline in Q2 2024 was primarily attributed to continued lower hiring rates by their clients.

How is Psychemedics (PMD) addressing the revenue challenges faced in Q2 2024?

Psychemedics (PMD) is addressing revenue challenges by adjusting operating costs without impacting client services and actively pursuing new markets and applications.