Good afternoon. My name is Elif McDonald, and on behalf of the entire Zomedica team, it is my pleasure to extend a warm welcome to everyone joining Zomedica's 2024 Virtual Investor Day. This is a very exciting time for Zomedica, and we hope you will come away from today's event with a better understanding of what we do and how it, it impacts you, our investors. Before we begin, we would like to remind everyone on this call that we will be making various remarks about future expectations, plans, and prospects that constitute forward-looking statements. These forward-looking statements are based on assumptions, and there are risks that results may differ materially from those statements. As such, Zomedica cannot guarantee that any forward-looking statements will materialize, and you are cautioned not to place undue reliance on them.
We defer current and potential investors to the forward-looking information and risk factors sections of our public filings, available on SEDAR+ at www.sedarplus.ca and on EDGAR at sec.gov. Forward-looking statements made on this conference call represent Zomedica's expectations as of today, February thirteenth, twenty twenty-four. We have a lot in store for you over the next hour, and I'd love to first provide a quick overview of the event. You'll hear from several senior leaders, starting with our Chief Executive Officer, Larry Heaton. Then you'll hear from Kevin Klass, our head of sales, Nicole Westfall, our head of marketing, followed by Ashley Wood, our head of R&D, and Evan St. Peter, head of our information technology team. They will be followed by Tony Blair, our Chief Operating Officer, and Greg Blair, head of business development and strategic planning. Finally, you will hear from our fi...
Chief Financial Officer, Peter Donato, who will provide a financial update. At the end of the presentation, we will be taking questions from the online portal. Please submit your questions, and we will get through as many of them as we can. With that, it is my pleasure to pass the mic to Larry. Larry, thank you.
Thank you, Elif. At Zomedica, our mission is to bring innovative diagnostic and therapeutic technologies to veterinarians to help them do the things they really love to do, improve the quality of care for the pet and the satisfaction of the pet parent, but also importantly, to help them do the things they really need to do, which is to improve the workflow, the cash flow, and the profitability of their practice. As we've pursued this mission, we've built our total addressable market for annual recurring revenue in the United States to $2.5 billion by focusing on two of the fastest-growing segments in animal health, therapeutic devices and diagnostics, and deploying five product platforms into this market. Along the way, we've built a pretty good track record of performance. In 2023, our therapeutic systems revenue was up 29%.
Our diagnostics revenue was up about 250%, all while maintaining gross margins in the neighborhood of 69%. Now, as we steer our course for the future, we're assisted in this by employing several veterinarians at Zomedica. The most senior of these actually serves on our board of directors. Let's take a few minutes to hear from Zomedica director, Dr. Pam Nichols.
I chose to join the board at Zomedica because, first of all, it's got a ton of products that I believe in wholeheartedly. I've been in this a long time, and I feel like they have the most amazing products that serve veterinarians and take care of our patients in a way that other companies don't. My goal in joining Zomedica's board was to keep involved with a company that's going to drive innovative products, that's going to continue to improve pet care and continue to improve veterinary medicine and make my job easier. Oh, my gosh, the challenges that veterinarians face every day are enormous. We have staffing shortages. We don't have enough time. We have pressures from outside industries marketing directly to our clients.
We have people trying to do their own vet care, people trying to take things into their own hands, not under a veterinarian's supervision. Zomedica addresses all of those with every single product line. Zomedica's product lines address staff shortages because we have things like TRUVIEW, the microscope with AI that will help get us a diagnosis quicker with less staff time. We don't have to prepare the microscope slide. It just does it for us. VETGuardian does remote monitoring, so we can look at our phone and know that this patient's vitals are still happy, healthy, and stable without having to send a technician in to open the cage, disturb the patient, and take the vitals. Stall-side ACTH, immediate results for finding out endocrine diseases in horses, which are super, super common.
Same thing with immediate results of diagnostic testing for pets in the hospital. So the economics of running a veterinary practice are hard. Our profitability is pretty low. Like, I think the average vet hospital in the country is less than 20%, probably less than 10%. So having products that are affordable for us, that we can actually charge for and make good margins, is amazing. PulseVet is probably the most profitable instrument that I have in the hospital. In fact, I'll take away probably. It is the most profitable tool that I use. But all of the products are positioned that way, to be able to provide daily profit improvement. PulseVet in equine is magic. I mean, it's so well utilized in the equine industry.
It's almost rare for an equine veterinarian to not know about it or be able to recommend it if they need to recommend it. But it's used for so many things. In my hands, I use it on my patients all the time. So I use it in a horse that's limping on a hind end. Horses are great compensators, and so if they have a hind limb lameness, they're gonna have a shoulder lameness, and you won't even know it. And so I do way more total body shockwave than anyone else, and I start at the back of their head and go all the way down their nuchal ligament, all the way down through their gaskin, down their butt, I mean, everywhere. I love shockwave, so I even use it as a secret weapon for competitions.
Zomedica's the company that's thinking of the future, that's got innovative products that no one else has, that drive profitability for veterinarians and save us time. Like, that's universally needed, all three of those things. My opinion is that veterinarians want to see products that can be done rapidly, that we can make a profit on, a decent profit, not anything crazy, but at least make money on, not waste a lot of staff time on, and depend on the results, so we know they're accurate. And also having things that really are available specifically from your veterinarian on your veterinarian's recommendation. So a PulseVet followed by a recommendation for an Assisi Loop at home is kind of a perfect dovetail for me. But being able to do...
And I, I really feel like the future of Zomedica is gonna be in adding more diagnostic tests to our repertoire, so that we can stay on the cutting edge and stay ahead of the game, looking for pieces that fill the needs we've got. I think I want people to know that Zomedica is looking at all angles, not just profitability for the veterinarian, but they're looking for products that actually affect pets' lives in a positive way. And, and certainly profitability for the veterinarian is a piece of that, but they're also looking at how to make vets' lives better. So how to save time, how to save on staff stress, how to save on doctor stress. And the marketing that you're doing, they're marketing around Assisi , like driving people to their veterinarians.
The marketing around PulseVet is now driving people to ask their veterinarian for PulseVet, which I think is probably really, really critical because veterinarians don't have time to market. They don't have time to investigate. They don't have time to be looking for new products. So when a client comes to them and says, "Hey, what about this PulseVet thing? Will it save my dog's limping?" Yeah, it will fix your dog's hip dysplasia. But it really helps to have Zomedica's marketing being driven towards clients asking veterinarians.
Dr. Nichols pointed out many of the things that make Zomedica what it is. Now I'll overview some of the business attributes which you may find of interest. At Zomedica, we have targeted a significant market by addressing critical animal needs with a portfolio of highly differentiated, proprietary, truly innovative technology platforms. We've built a global channel to be able to expand adoption in the United States and abroad, and we have additional opportunities through our R&D and acquisition capabilities to continue to expand our portfolio. Our operational team is doing a terrific job of execution and doing it efficiently to support our path to profitability. With $100 million in liquidity, we have no need to raise additional cash to be able to realize our objectives. The veterinary services market is huge: $62 billion in the United States in 2023.
It was large before, and then during the pandemic, 23 million new puppies and kittens were brought into US households, and it was the youngest among us who adopted at the highest rate, which assures a new generation of pet parents for the future. And I am saying pet parents as opposed to owners, because it is truly the case that people today view their pets as part of the family. And as it turns out, there are a lot of things they would give up before they would not take their sick or injured pet to the vet, meaning that this is a large market that's growing, and it's resistant to an economic downturn. Our portfolio of products is very well positioned to meet the challenges of the new market by addressing critical needs for animals, but also critical needs for veterinarians.
Our five pillars: improving the quality of care of the pet, the satisfaction of the pet parent, and the workflow, cash flow, and profitability, are all well served by each of the products in our portfolio between the therapeutic devices and our Zomedica diagnostic products. Each of these products has substantial recurring revenue opportunities for Zomedica. In fact, today, over 70% of our revenue comes from the consumables associated with our products, totaling $2.5 billion in annual market opportunity in the United States. And along the way, there's another $1.5 billion opportunity for those products that we sell the capital for. Each of these products is well-suited to serve some of the 30,000 small animal practices or 4,450 equine and/or mixed practices.
With a total addressable market on an annual basis of $2.5 billion and just over $25 million in sales in 2023, you can see that we've just barely scratched the surface of the market opportunity. But we've been scratching at an increasing rate over the last several years, with year-over-year growth in 2023 of just over 32%. We did $7 million a bit more in the fourth quarter of last year, which was a new record revenue for the fourth quarter and a new record revenue for the company. In fact, each quarter, as you look back, has set a new record for that particular quarter, just reflecting the fact that we're growing nicely.
While we're growing, we're also maintaining really good margins at around 69%, while burning consecutively less cash on a quarterly basis, with just under $3 million burned in the fourth quarter of last year. With $100 million in liquidity as of the end of the year, after paying for several acquisitions in the fourth quarter, you can see that we have plenty of capital to be able to continue to pursue growth on both the organic and acquisition level. Let's take a look at some of Zomedica's products that are impacting pets' lives and veterinary practices.
PulseVet is the undisputed leader in veterinary shockwave technology. PulseVet Shockwave has been proven to treat a variety of soft tissue and musculoskeletal conditions. The results are backed by science and decades of clinical research. That's why more veterinary hospitals and universities around the world trust PulseVet's focused electrohydraulic shockwave system. You'll find more than 1,500 of PulseVet's electrohydraulic units worldwide. Let's talk about the PulseVet advantage. Designed specifically for veterinary use, the 10-by-12-inch device weighs just 36 pounds, making it the smallest, most portable device available. Our patented Trode technology enables you to customize treatments ranging from wounds to deep tissue back pain. Our electrohydraulic shockwave generates a high-energy sound wave and has the largest focal area of any device, making it ideal for treating orthopedic conditions. And it works! PulseVet technology is effective in treating a variety of indications, including... Just how effective?
We've seen 80% success in reducing hock OA pain, 90% success in treating sore backs, 81% success in improving navicular pain. But don't just take our word for it. Proven, trusted, effective.
Now, let's take a look at some of the details with respect to our product platforms, beginning with the first therapeutic device, the PulseVet system. The PulseVet system is the global leader in shockwave technology. It grew to prominence in equine sports and rehab medicine over the last decade or so, and then just a couple of years ago, a new accessory device was developed that enabled it to be used in small animals without the need for sedation. It was at that point that Zomedica acquired Pulse Veterinary Technologies. We were, of course, impressed with the fact that the therapy is highly effective. Takes less than five minutes. Only need a couple of treatments for each animal.
But as importantly, we see an opportunity because while it has a very high penetration in the equine veterinarian world of around 5,000, between mixed and equine-only practices, it had yet to be introduced into the small animal market, where there are 30,000 practices. And that's what we've been about the business of doing for the last couple of years. As we present it to small animal veterinarians, the economics are we sell them the device for $30,000, and then we sell them each handpiece for just over $2,000. That handpiece will deliver 50-60 treatments, depending upon the exact specifics of each treatment. But when those are done, then they need to return that handpiece. We refurbish it and sell them a new one for another $2,100.
In fact, today, 60% of our revenue of PulseVet overall comes from Trode reorders. For the vet, it's compelling. First, because it's highly effective, the pet parents are delighted. It only takes 1-3 treatments, but also financially. They can acquire the system for $30,000. We have a third party that we work with for financing. They're only out $600 in the first year. And by doing only five patients a month, for an average two treatments each, they can generate substantial revenue, in fact, enough to pay back for the machine in one year. We're very pleased with PulseVet, mostly because it improves the quality of care for pets and the satisfaction of pet parents.
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Next up in therapeutic devices is our Assisi Loop family of products, which deliver targeted pulsed electromagnetic field therapy in a variety of formats: larger loops and smaller loops, and DentaLoops , and loops built into lounges for pets to lay on. What they all have in common is they're delivering electromagnetic field therapy, which increases endothelial nitric oxide, which in turn reduces inflammation and pain. These are devices that are intended to be sold to the pet parent themselves to bring the healing home. It's a way for the pet parent to become involved in the continuum of care for their own pets. We sell a device to the veterinarian for around $200. They, in turn, turn around and sell it to the pet parent for $300.
It's what we call a resposable, meaning it's going to last at least 150 treatments, after which time the pet parent will need to purchase another one. This product is sold to vets. We also, when we acquired Assisi Animal Health, we also gained their channels to market. So we built on our infrastructure, e-commerce capability ourselves, plus channels through Chewy and Amazon and Walmart, plus channels through US animal health distributors and some international distributors as well. This device, the classic Assisi Loop, treats inflammation and pain. A related product, our Calmer Canine system, is for separation anxiety. It's for those pet parents who maybe adopted a pet during the pandemic and really have never been apart from them, and yet now they have to go back to work, to the office.
When they come home, they find that the couch is chewed up and the neighbor's complaining that the dog's been barking all day. This uses a slightly different wavelength, targeting the amygdala of the brain to increase dopamine and reduce anxiety to treat that separation anxiety. These products combine for a conservative total of available annual market of around $290 million.
The TRUVIEW Microscope represents the latest innovative technology launched by Zomedica. By combining advanced optics with automated slide preparation, we are providing veterinary professionals with a powerful tool that enhances their diagnostic capabilities and streamlines their workflow.
We make sure that once you put the slide in the scope, everything is automated, so it doesn't get busy doing something else. It only has one job in the world, and that's to make a slide, and it does that better than any human can ever do it, time after time after time.
The veterinarian can be anywhere in the clinic, or even at home, and log on to a browser, view the case that has been done in the clinic, and then request for pathology from pretty much any Windows-based computer.
The innovation of the automated slide prep feature has been a desperate need in the industry for years. Visit our website or call us today to experience the power of TRUVIEW. Unleash the full potential of your practice.
Our most recent product launch was of the TRUVIEW Digital Cytology Platform and related pathology interpretation services. The TRUVIEW microscope is unique in the world. Of course, it does what all digital cytology platforms need to do, which is to provide an excellent image. In fact, we believe that our TRUVIEW image is among the best in the industry because it utilizes a liquid view, liquid lens. But in addition, it alone in the world prepares the slide for the technician, which cuts 5-10 minutes in prep time, every slide that they have to prepare. Because remember, when they're preparing those slides, many of those steps are dipping it into stain, and then they have to let it dry in between.
By automating the slide prep, not only do they get a perfect slide every time, but they also are able to reduce their hands-on time with this microscope to about a minute per slide. At the end, the veterinarian gets a quality image, best in class, for them to interpret themselves or with the push of a button, to request a pathologist interpretation from one of Zomedica's board-certified pathologists, which they'll receive in about two hours. We make it easy for the practice to acquire and use this technology. We charge $495 as a subscription to bring the device into the clinic, and that includes their first 100 slides, a small fee per slide over 100 slides, and then a $75 fee each time they request a pathologist report.
And while that monthly revenue will vary depending upon how many of those reports they request, our estimates are that we'll generate about $1,000 per month from each microscope that's installed, providing overall about a $500 million annual addressable market.
Zomedica has partnered with Qorvo Biotechnologies to develop TRUFORMA, a breakthrough testing platform that aims to dramatically improve how we identify and manage disorders in dogs and cats. Based on high-performance bulk acoustic wave detection, TRUFORMA provides accurate reference lab grade results in approximately 18 minutes on average. Currently, many in-clinic platforms lack the sensitivity and speed needed for rapid diagnosis. As a result, many tests are still sent to a reference lab. The advanced biosensor platform, TRUFORMA, will shift this paradigm, offering fully realized reference lab performance at the point of care. Using industry standard microfluidic and electronic design, both the instrument and the disposable cartridges are easy to use. The cartridges provide incredible flexibility, performance control, and a broad menu of complex testing possibilities.
The sample passes through the cartridge via a series of microfluidic channels and ultimately over the sensor, where the platform's incredible acoustic-based technology takes over. TRUFORMA uses a completely different, new, and extremely sensitive method of detection based on Bulk Acoustic Wave, or BAW sensor technology. The BAW sensor can detect... When an analyte of interest passes through the fluidic channel, it binds to the target molecule, forming a slightly heavier particle that resonates at a different frequency. This change can then be converted to a known concentration. Because BAW operates at high frequencies, it has a very low limit of detection, allowing these changes to be measured down to a level of 10 picograms per milliliter. The platform tests use a test reference analysis, eliminating background effects such as temperature, viscosity, and nonspecific binding. The mass-based detection is isolated to the surface, leading to breakthrough variance control.
Average of 18 minutes through a tabletop instrument, finally enabling clinicians to access the data they need in a timeframe that enhances clinic efficiency. Zomedica's new BAW biosensor detection platform addresses the gaps that have previously prevented highly accurate in-clinic testing, providing reference lab quality performance at the point of care. For more information, please visit zomedica.com.
The TRUFORMA product platform is where it all began for Zomedica. It consists of a highly sophisticated analyzer, the instrument itself, and used in conjunction with cartridges that are disposable and are loaded with the reagents needed to do a single test or a single combination of tests. It utilizes highly proprietary bulk acoustic wave technology, which allows for an extreme dynamic range that is unmatched by any other point-of-care technology in the market, which allows Zomedica to provide tests, assays, to be used in the clinic that otherwise would have to be sent out to a reference lab. Certainly, there are other analyzers in the clinic that are large competitors, but none of them are able to do most of the assays that the TRUFORMA platform can perform.
These systems we place into the clinic at no charge, as is the industry standard, and then we sell the cartridges anywhere from $27-$82, depending upon the particular assay. The path to expansion of our revenue with this platform is, first, expand the installed base, and we're doing that on a quarterly basis, and then also to increase the number of assays that we have available. We began in 2021 with three assays, which were delivered to us by our development partner. Last year, we acquired, in the fourth quarter, we acquired that development partner, and so now the pace of assays being developed and launched will be a function of our investment in the technology and in the research and development process.
We're very pleased with this platform in that it delivers reference lab accuracy at the point of care, and bringing diagnostics into the point of care is a major effort by veterinarians as they seek to continually improve their business processes. With this, we expect today about an annual addressable market of about $1.5 billion. Of course, that increases each time we introduce a new assay. ... Rounding out our diagnostic segment is our VETGuardian product platform. The VETGuardian system is a wireless remote monitoring system in which nothing is touching the patient, and yet the pet's vital signs are being captured remotely. Respiration, temperature, and heart rate are measured and are displayed on a screen that is pulling that data down from the cloud into their my Zomedica portal.
What this allows them to do is to have peace of mind, knowing that while that pet is at its most vulnerable, in post-op surgery, in the ICU, or alone in the clinic overnight, when everyone else has gone home, it gives them the peace of mind knowing that that pet is being constantly, continuously monitored, and that if any of those metrics exceed or fall below a safe range, that alarms are going to sound. The device itself will sound an audible alarm. The screens that are bringing the data down from the cloud, from the in the my Zomedica portal, are going to flash, and maybe that's a big flat screen TV in the tech area in the practice. They're going to see that flashing.
Or maybe they're looking on their iPhone or an iPad or a laptop because they're home or they're away from the practice, so that they know they need to get to that pet and address whatever is amiss. The genesis for this product was the fact that 70% or so of animals that die in the clinic, not associated with euthanasia, die in post-op recovery. And it's not because vets don't care to watch, it's just they don't have the staff to be able to one-on-one monitor that pet. And even if they did, they don't have X-ray vision. Now, VETGuardian doesn't have X-ray vision either, but it does have Doppler radar. It has thermal imaging camera, a regular video camera, night vision capability, and LiDAR sensors.
It's able to capture this very important data and display it on a screen so that they can not only watch it, but they can be alerted by it. If they don't happen to be watching it, they're going to get an email or a text that says, "Hey, something is up. Need to check out the pet." The economics are pretty straightforward. We sell the device for $4,500. Beginning in year two, we charge a $240 annual cloud service fee, and then we offer an optional extended warranty on an annual basis of $355 beginning in year two. The real opportunity here in terms of recurring revenue for us is that they buy a second unit or a third or an eighth.
The my Zomedica interface that they're watching on that big screen in the tech room can display up to eight sessions on a single screen. And so we think conservatively, the annual recurring revenue opportunity is around $40 million and a capital revenue opportunity as we move forward, around $465 million. It's convenient, it's easy to use, and it's being, it's being adopted at an accelerating pace by veterinarians in the United States, and we have plans to launch it internationally later this year.
My name is Kevin Klass. I'm the Senior Vice President of Sales for Zomedica. I have over 30 years of experience in veterinary and human medical sales. More than half of that experience has been in the veterinary market, holding positions in sales leadership, marketing, and international sales. I have extensive experience reorganizing and motivating the sales force while driving increased performance. My 17+ combined years at IDEXX and Heska have given me many transferable skills and relationships to fuel success in my position. I'm so confident in our potential that in addition to the stock options I received when joining, I purchased more than 1 million shares personally. We have a maturing US sales force driving direct sales of our core products. The current team is four regions, comprised of 29 territories.
We are moving to a larger 35 territory sales organization to improve our reach and coverage. We are also working on incremental improvements by optimizing alignment between our inside and outside sales organizations, making improvements to our hiring profile and process while revamping our sales tools and training. We leverage distributors for our more transactional capital products in the US, Europe, Australia, and the Middle East. We have a wholly owned subsidiary in Japan, and we are evaluating expansion of product offerings in existing international markets, as well as new distribution opportunities in other geographies. For our US veterinary sales channel, we're driving incremental gains in several ways. We're targeting veterinary clinics based on segment to provide a more compelling, tailored message. We're leveraging distributor relationships to gain access into new clinics and expand our reach.
We've started a new reference selling program designed to increase our close rate and shorten our sales cycle. For PulseVet, we are using the exceptional acceptance in the equine market to drive adoption in the small animal market. TRUFORMA is an outstanding platform with a unique assay menu. We're showing customers how this platform can complement their existing in-house analyzers by addressing unmet needs. VETGuardian and TRUVIEW are truly unique systems which address pervasive labor shortages and workflow issues, which most clinics have. And finally, Assisi is a great way to send healing home with clients and expand the market outside of the veterinary clinics.
Hello there. I'm Nicole Westfall, Senior VP of Marketing. My extensive marketing background, mixed with years of animal health experience, helps me to lead an amazing team to reach the highest and best results for Zomedica. Throughout my career, I have been on the media side, behind the scenes, as well as been a leader in all facets of the marketing realm, and have honed my skill to spot a company with great potential. That's why I joined the team here at Zomedica. Being customer-facing on a daily basis, I wish everyone could experience the excitement and the enthusiasm for our products in the veterinary industry. With our strong multi-channel sales focus, we're able to reach each of the customers in the veterinary industry and the pet parent markets for our product lines with ease.
Couple that with the marketing strategy we're implementing, which leverages education, omni-channel segmentation, and a robust trade show and conference schedule. We are poised not only to continue our rapid growth, but make Zomedica a compelling investment. It's one of the best no-brainers in the business to support helping us grow and become profitable.
Hi, my name is Ashley Wood, and I am the Vice President of R&D at Zomedica. I received my Bachelor of Science from Duke University in Chemistry, with a concentration in Biochemistry and a minor in Biology. I also have a PhD in Molecular Biology and Genetics from Johns Hopkins University, and I did additional training in cell biology as a postdoctoral fellow at Northwestern University. I have been doing product development outside of academia for over seven years, and at Zomedica, I am responsible for leading product development activities for all five of our product lines. Today, Evan St. Peter, who will introduce himself in just a few minutes, and I are going to give you an overview of some of the exciting R&D activities at Zomedica.
Before we dive in, we would like to share a quick video highlighting some of our internal R&D capabilities here at Zomedica.
In Q4 2023, Zomedica acquired Qorvo Biotechnologies and assumed control of its Plymouth, Minnesota facility, home of our TRUFORMA point-of-care diagnostics platform manufacturing operation. TRUFORMA stands at the forefront of veterinary diagnostics, offering accurate, rapid, and reliable results for complex thyroid and adrenal conditions. With exclusive assays, including the first-ever feline-optimized TSH and Free T4, as well as canine and equine endogenous ACTH, TRUFORMA delivers reference lab quality right at the point of care. The acquisition of this facility not only signifies Zomedica's commitment to innovation, but also strategically positions us for significant margin improvements and accelerated assay development. This strategic acquisition is a testament to our foresight and commitment to delivering unparalleled value to our investors and revolutionary care to pets around the globe. Zomedica's Plymouth facility is not just a center of excellence, it's a beacon of growth and innovation in veterinary diagnostics.
Together, we are paving the way for a future where every diagnosis is quick, every treatment is precise, and every pet enjoys a healthier life.
Zomedica has shown a history of bringing innovative technologies to market over the past few years. We launched our first product, TRUFORMA, in March 2021. This is an automated immunoassay device that uses bulk acoustic wave technology to allow veterinarians to perform diagnostic assays at the point-of-care. At the initial launch of TRUFORMA, we also launched the canine and feline Total T4 assays, the canine and feline TSH assays, and the canine cortisol assay. Since that time, we have continued to add additional assays to the TRUFORMA product line, including canine endogenous ACTH and canine Free T4, both in 2022, and equine ACTH, canine pancreatic lipase, and our first multiplexed assay that simultaneously measures two different molecules, cobalamin and folate, on the same disposable cartridge in 2023.
Development of these last assays, canine pancreatic lipase and cobalamin and folate, was completed with our internal R&D team after the acquisition of Qorvo Biotechnologies. In addition to TRUFORMA, Zomedica has acquired four other product lines over the past three years. PulseVet, which provides electrohydraulic shockwave therapy to reduce inflammation and swelling and promote healing, was acquired and launched by Zomedica in October of 2021. Assisi, which provides targeted pulsed electromagnetic field therapy, was acquired and launched by Zomedica in July of 2022. VETGuardian, which provides temperature, pulse, respiration, and video through contactless monitoring, was launched in January of 2023.
Finally, the TRUVIEW technology that provides automated slide preparation and digital cytology at the point of care was acquired in July 2022, and after internally completing product development at Zomedica, we brought this product to market for the first time in June 2023. Zomedica has grown its R&D expertise and capabilities through acquisition, and we are now fully equipped to continue product development internally with our current team of scientists and engineers. As we look into the future, Zomedica plans to continue its focus on product development to increase utilization of the five existing product lines. For our therapeutic devices, we are supporting clinical studies to examine the efficacy of these technologies for new indications. For example, we supported a study performed by Dr. Beau Whitaker at Brazos Valley Animal Hospital that showed a positive response for horses with exercise-induced pulmonary hemorrhage.
This work led to a follow-up study that is ongoing to look at the efficacy of shockwave therapy by the PulseVet device to treat horses with mild and moderate asthma. We have another study ongoing at Colorado State University looking at the effectiveness of PulseVet therapy for slowing the progression of canine osteoarthritis. These kinds of studies have the potential to provide new applications for our therapeutic devices and therefore increase utilization. Additionally, for our therapeutic devices, we are exploring improvements and product line extensions that would improve the user experience. For our diagnostic devices, R&D is also focused on increasing utilization. For TRUFORMA, the main focus is to continue to add new assays that can be run on the device. With the acquisition of Qorvo Biotechnologies, we now have internal R&D capabilities for TRUFORMA, which allow us to control the timing of assay development for the first time.
We currently have multiple assays under development, including those that target reproductive, cardiac, and endocrine health for dogs, cats, and/or horses. Finally, our R&D team is leveraging artificial intelligence across both the VETGuardian and the TRUVIEW product lines to improve current functionality and add new capabilities. This is actually a good opportunity for me to hand things over to Evan St. Peter, who heads up our digital product development team. He will provide more details on some of the exciting capabilities being developed in digital technology at Zomedica.
As Ashley mentioned, I'm Evan St. Peter, Vice President of Technology Innovation. By education, my background is in life sciences and business. I have a bachelor's degree in biology from Northern Michigan University and a master's in business administration from Western Michigan University. But for the last 15+ years, I've been working with technology to solve business problems and improve business outcomes. Today, I want to take a second to talk about our digital products. Behind and integrating all of our products sits our customer experience and data insights cloud platform called my Zomedica. Early in Zomedica's journey, leaders of the company identified value in receiving data from its diagnostic devices. In addition to the data value, we quickly identified digital technology as a medium to build complementary and necessary clinical experiences to support veterinary teams and team members.
The quantitative test result numbers supplied by our diagnostic devices represents only a sliver of the clinical process. To ensure we offered a complete solution, we pivoted from just receiving test results to creating a clinical experience platform to support the clinical decision-making process. As we looked at the landscape of digital technologies within the veterinary health market, it became apparent that we needed to make it simple for our veterinary partners to interact with us. We identified the need to have one online hub for our customers. The name my Zomedica stemmed from this idea, as we wanted our partners to easily remember where to go to engage with our products and us. Today, my Zomedica's one hub strategy has expanded. It is a clinical decision support hub, an e-commerce platform for reordering our products, a product and clinical education platform, and more.
Now let's talk about what is next for my Zomedica and Zomedica's technology offerings. We want to continue to leverage Internet of Things technology to expand our device-to-cloud and cloud-to-device message capabilities. With data being the necessary input for leveraging artificial intelligence technology, we continue to see a significant benefit from our IoT device data streams. We are also pleased to be releasing over-the-air software update capabilities for our TRUFORMA device early this year. Our TRUVIEW product was launched with over-the-air software update technology, and we're excited about the positive impact this capability will have on our TRUFORMA product line, specifically improving capabilities for releasing new assays. Another aspect of our R&D roadmap is further refining our device and cloud-side image acquisition and image processing capabilities. Similar to what I previously mentioned, data, including image data, will be the currency of the future for driving innovation through artificial intelligence technologies.
We are working to ensure that Zomedica is well-positioned to capitalize on AI technology. On the therapeutics front, we're continually looking at technologies for delivering relevant content to our partners. We recently launched a digital marketing experience to remove barriers and assist veterinary practices in promoting shockwave therapy to their pet parents with pets in need. We are also trialing the use of mobile applications for delivering on-demand therapeutic device treatment content to increase awareness of treatment options and act as a treatment resource for veterinary team members. Now, I'd like to pass things off to our Chief Operating Officer, Tony Blair, to talk about Zomedica's growing and expanding manufacturing capabilities.
These last two years have been exciting, and I'm proud to report that we've been able to create a manufacturing operations organization capable of manufacturing, assembling, testing, and distributing all of our product lines. This could not have happened without a dedicated, talented, and hardworking group that I'm privileged to work with every day. We established the Zomedica Global Manufacturing and Distribution Center in August 2022. This facility is 18,000 sq ft, and we manufacture our PulseVet product line, our Assisi product line, our TRUVIEW product line, our VETGuardian product line, and our TRUFORMA instrument at this facility. We also distribute all of these products out of Georgia. It's my great pleasure to announce that we've recently, in October 2023, acquired Qorvo Biotechnologies. We've integrated that into our organization, and this facility is located in Plymouth, Minnesota.
The facility is 30,000 sq ft, and we manufacture and assemble, and distribute our TRUFORMA consumables and assays from this facility, along with all the R&D that's required for our consumable product line. It's important to understand our manufacturing operations is positioned for future growth and what that means. We have developed and implemented our manufacturing operations plan on three critical must-have elements: being best in class, designing scalability, and implementing infrastructure. Examples of these elements. Being best in class is the selection and design of facilities, manufacturing processes, and equipment using the latest technology. Scalability is predicting future growth and designing for that future growth. An example is Roswell's layout was designed for 5x the 2023 production scale. In Plymouth, we have automated a cartridge manufacturing line that is able to handle 2028 sales volumes.
Infrastructure, that is planning for capital and facilities that are required, the human infrastructure that's required, along with systems such as enterprise software, quality software, and product life management software for the future. The good news is, as this growth comes, we're ready without investment. These three important elements allow us to grow by increased efficiencies, which will improve future margins. Our facilities, people, and processes in Roswell, Georgia, and Plymouth, Minnesota, are positioned to take advantage of the future sales growth of our products. I look forward to our future, and thank you for your time and continued support.
Hello, my name is Greg Blair, and I'm Senior Vice President of Business Development and Strategic Planning for Zomedica. I'm a career life sciences executive with a combination of pharmaceutical, med device, and animal health experiences. I've gained cross-functional leadership experiences in finance, marketing, and business development with industry leaders such as Eli Lilly and Company, Johnson & Johnson, and Intuitive Surgical. My intro to the animal health industry was when I rejoined Lilly in business development in 2015. I was asked to support the Elanco division at the time and fell in love with the animal health industry. We have all of the same scientific drive towards improving quality of care as human medicine, with the added benefit of helping animals, which help us to live such fulfilling lives.
While I was at Elanco, I completed over 35 deals, ranging from licenses to acquisitions, divestitures, and a strategic alliance with a joint venture in China. In 2021, I was recruited to Zomedica, where I was given the challenge to help build a world-class animal health company by identifying and acquiring a portfolio of the most differentiated, impactful, and high potential products possible. Hello, my name is Greg Blair, and I'm Senior Vice President of Business Development and Strategic Planning for Zomedica. I'm a career life sciences executive with a combination of pharmaceutical, med device, and animal health experiences. I've gained cross-functional leadership experiences in finance, marketing, and business development with industry leaders such as Eli Lilly and Company, Johnson & Johnson, and Intuitive Surgical. My intro to the animal health industry was when I rejoined Lilly in business development in 2015.
I was asked to support the Elanco division at the time and fell in love with the animal health industry. We have all of the same scientific drive towards improving quality of care as human medicine, with the added benefit of helping animals, which help us to live such fulfilling lives. While I was at Elanco, I completed over 35 deals, ranging from licenses to acquisitions, divestitures, and a strategic alliance with a joint venture in China. In 2021, I was recruited to Zomedica, where I was given the challenge to help build a world-class animal health company by identifying and acquiring a portfolio of the most differentiated, impactful, and high-potential products possible. In my three years with Zomedica, we have done just that, driving a three-part growth strategy, seeking to acquire high-potential, high-growth businesses that benefit the patient while improving the veterinarian's practice.
We focused on integrating these businesses efficiently to leverage the best-in-class capabilities acquired and leveraged our commercial engine to accelerate the growth of the acquired businesses. We do this by leveraging extensive networks in the animal health industry from across our team to identify game-changing new technologies before they become well-known and elevate the quality of care while seeking technologies with limited competition. Our focus is in diagnostics, monitoring, and therapeutic medical devices, which are the fastest-growing segments of animal health. Five acquisitions in, Zomedica has an exciting portfolio of differentiated products, and we're now driving some of the highest growth rates in the industry. This is why Zomedica is a compelling investment for anybody interested in investing in animal health. The first acquisition that we completed in October of 2021 was out of Pulse Veterinary Technologies, makers of the PulseVet electrohydraulic shockwave therapy platform.
It was already standard of care in equine therapy, but what really impressed us about this company was the wide array of clinical data that they had been able to produce on small budgets through the passion of their key opinion leaders. They demonstrated superior results in wound healing, osteoarthritis, and tendon and ligament injuries, all of which are really difficult conditions to heal from. We were super excited to drive this technology to help dogs and cats experience the same benefits without drug therapy. Since the acquisition, we quadrupled PulseVet's growth rate in the first 12 months following the acquisition, and we have continued to invest in clinical studies to drive new indications in both dogs and horses. The second acquisition that we completed was of a small Atlanta-based company called Revo Squared. We acquired all the assets of this business in June of 2022.
What made Revo stand out was the digital microscopy platform that they had developed with a revolutionary automated slide prep system. This is critical to the quality of diagnosis because the most common reason a pathologist rejects a slide and can't give a diagnosis is poor slide prep. It was stained wrong, it was dried wrong, it was smeared wrong. The Revo Squared system, rebranded TRUVIEW, corrects all of these issues. Every practice needs reliable microscopic imaging, and TRUVIEW enables more consistent slide prep with a convenient option for automated pathology consultation and a flexible business model to help the practice. Since we completed the acquisition, we've finished development of the system and launched it as the TRUVIEW Digital Microscopy Platform in mid-2023. It expands our diagnostic offering to broaden our partnership with practices.
Since we launched it, we're experiencing very, very strong demand from customers, especially larger practices with three or more veterinarians. Revenue is expected to ramp this year, increasing the contribution of the diagnostic portfolio to Zomedica's investment thesis. We retain the human rights to this technology also and could license this breakthrough technology for human use, further improving the investment profile for Zomedica. Next, in July 2022, we completed the acquisition of the assets of Assisi Animal Health, market leaders for targeted pulse electromagnetic field therapy with four distinct product lines: the Loop and the Loop Lounge for pain and inflammation, the Calmer Canine product line for separation anxiety, and the Denta Loop for dental pain and gum disease. Assisi allows pet parents to bring the healing home with these four exciting product offerings.
They provide an established, well-recognized brand backed by scientific publications, sold both to vets and direct to consumers, and importantly, very strong cash flow for Zomedica. Since the acquisition was completed, we've expanded our marketing capabilities as a company to include direct-to-consumer channels. We've established Zomedica as a significant player with online retailers, and we've expanded our distribution footprint globally, increasing our international business, which is important both for the Assisi product line and for products yet to come. The next acquisition that we completed was of Structured Monitoring Products in September 2023. SMP developed the VETGuardian wireless monitoring system that monitors temperature, pulse, and respiration without any leads or wires touching the patient.
This is important in animal health because, unlike in human care, you can't trust a dog or cat not to chew the leads off and ingest them, which causes even more problems for a pet already experiencing hospitalization or illness. VETGuardian improves the quality of care in surgical and overnight settings and really for any hospitalized patient. We believe that this represents an every clinic, every vet opportunity, and we see the potential for widespread adoption of this as we roll it out. Since the acquisition, we've had very strong clinical interest, which drove accelerating sales to the end of 2023, which is continuing in 2024. All of our major distribution partners are helping to drive those sales, and we've had some high-profile accounts that we think will really help reference sell this product to customers.
International interest also remains strong, and that will be unlocked pending completion of international approval later this year. Finally, the acquisition of Qorvo Biotechnologies in October 2023 allowed us to come full circle. Qorvo has been our longtime development partner on TRUFORMA, a platform that we launched in March 2021. It delivers unparalleled accuracy to customers at the point of care. And by acquiring this division of Qorvo, QBT, we now own the manufacturing and R&D capabilities that invented this technology. This enables us to improve the cost of goods sold and accelerate development of exciting new assays. This allows us to really drive our destiny. Now, since the acquisition, we've already had a number of successes. We launched the first-ever equine assay for equine Cushing's disease or PPID, eACTH.
This is a first time at point-of-care diagnostic tool that allows veterinarians to screen for this very severe condition in horses at the point of care, without having to send a sample into a lab and wait several days for an answer. This gives the veterinarian more flexibility in how to screen horses for this disease and treat them in follow-up. Second, we launched new assays to diagnose the causes of vomiting and diarrhea in dogs, a top 3 reason for vet visits. We expect to see rapid increases in small animal adoption with these high-volume assays. Over the past three years, we've screened hundreds of opportunities in order to land on these five exciting platforms that now belong to and are part of Zomedica.
Each of them helps to elevate the quality of care of the pet, the satisfaction of the pet parent, as well as the veterinarian's cash flow, workflow, and profitability. Today, Zomedica represents more than a portfolio of innovation worthy of investment. We've demonstrated our track record in identifying new, highly differentiated, high potential products, acquiring and integrating them into the company, and accelerating their growth rate. We continue to seek new differentiated products and technologies that share these attributes. We're looking for things that are highly differentiated clinically, elevating the standard of care. We want to see large addressable markets and current revenue with high growth potential. We also want to maintain our industry-leading margins. Zomedica's continued investment in external innovation will accelerate our growth and our path to profitability, making us an attractive investment within the animal health sector.
Good afternoon. I'm Peter Donato. Many of you already know me. I'm the Executive Vice President of Administration and Chief Financial Officer at Zomedica. My slides will be short today. This isn't intended to be a long financial presentation, but merely to highlight where the company has been from a revenue perspective and a financial highlights perspective, and also take a peek forward, as we've already talked a little bit about 2024, but give you a flavor of how I'm thinking about 2024. So first, where have we been? And up in the left corner, you can see that the company, when many of you invested in it, had no revenue. In fact, no revenue at all. That was 2020.
Enter Larry and some of the senior leadership that already presented today, and the company closed out its first revenue in 2021 of in dollars. Then that number grew really nicely in 2022, topping out at just under $19 million. Then we pre-released revenue, keeping in mind these numbers are not audited yet, but we said that we expect the number to be over $25 million for 2023. That's an increase of 32%. So pretty exciting times, and we'll talk about where we're going here in a moment. All of that while we maintained nearly 70% margins most of the year. Now, I've guided very publicly to 65%-70%, and what I've also said that it starts with a seven, probably as you look out into the out years.
But it's fair to say we're right around 70% margins, business, all while growing that top line north of 30%. And many of you already know this as well. The balance sheet is really strong. We have $100 million of liquidity. That's defined as cash, cash equivalents, and available for sale securities. So $100+ million . Again, we'll report the final number next month once we get through our audit, but we expect it to be over $100 million. And all of this, while the adjusted cash burn from operations just keeps coming down. It'll probably be just under $12 million, about $11 million or $12 million for the full year.
So when you take that number and compare it to the $100 million, you can see that we have a lot of dry powder to do the things that we talked about during this investor day today. And finally, my last slide, and this is more forward-looking, trying to think about where we were, and I just talked about that, and where we're going. Pretty exciting times. About a month ago, on January seventeenth, Larry and I gave the company's first-ever formal revenue guidance, and that was $31 million-$35 million . That's approaching 40% on the top end of the range. Just some color commentary on it. So if we end the year at around $25 million, which is what I said, and we add $6 million, right? Easy math to get to the $31 million.
How do we get there? The therapeutics group, which consists of PulseVet and ACC, are really predictable, metrics, et cetera. So I think that most of the $6 million will come strictly from therapeutics. So we're at or pretty close to the bottom end of the range before we even add in diagnostics, which checked in at about $1 million or so for 2023.
So as you think about the sensitivity, nothing is easy in running a business, but we feel pretty good about the low end of the range, with the lion's share coming from therapeutics and the upside or the wild card, if you will, the additional $4 million potentially coming from additional therapeutics performance, but probably from the diagnostics, with those products that have been with us now, it'll cross the year barrier for most of them next year. What gives me more confidence? We have a big sales force, right? We have 30+ territories. That number probably grows closer to 40 over the coming quarters, but more importantly, it becomes mature.
What that means is our sales folks generally become more productive at three months, six months, and certainly at a year. So if you think about how we form the territories over the last couple of years, this sales force is really starting to be mature, and with that, some more predictable productivity. We're doing that, and we've been very public in saying that we're further penetrating the non-equestrian, particularly with PulseVet. So this big, more mature sales force is going after a lot of vets that do not have PulseVets in the equestrian, non-equestrian side of the business. The equestrian side is solid, with over 1,200 vets or so, and that'll continue to grow, but we do have a lot of upside, a lot of upside in the non-equestrian veterinarians. And lastly, we've been very public.
International expansion, distribution expansion, those are things that we expect to help us achieve that $6 million-$10 million growth to get us into that revenue range. The therapeutic devices, as we said, PulseVet, we have a big install base. We expect to grow, but 60% of that revenue or more comes from the consumable product, and we're seeing some very positive utilization trends there. And Assisi was never gonna be the ringleader in the therapeutics devices, but it is growing nicely, and we're benefiting. And I've been very public in talking about distribution channels such as Amazon and Chewy, and Chewy, and we're seeing nice growth there. So feel really good about where we're at with therapeutics and then the diagnostics group.
I just talked about how these products should cross the one-year barrier, but we announced a lot of exciting stuff with TRUFORMA, with some new assays, and those have been well received, and we continue to expect greater penetration on TRUFORMA. TRUVIEW was just launched late last year. Exciting revenue model with this service-based model. There are some more to come on TRUVIEW, and VETGuardian, we were selling early last year, but really didn't fully integrate it till late in the year when we completed the acquisition of SMP. But we're seeing the maturation of those accounts, and we're also seeing many of the accounts that bought one or two VETGuardians asking for more.
So more to come in diagnostics, but the general takeaway here is we feel pretty good that the low end of that range is pretty predictable, with a lot of upside, as we just talked about, particularly with the diagnostics.
Hello again, and thank you for listening to our exciting Investor Day presentation. We hope that you now have a sense of the excitement we feel every day at Zomedica, and more importantly, got a chance to hear from our world-class leadership team about the work they do as we move forward with our mission to improve the quality of care for the pets, the satisfaction of the pet parents, and support the workflow, cash flow, and profitability of veterinarians. Over the past few weeks, we have received many questions from investors via emails, phone calls, and through our shareholder platforms. We have read through them and pulled out the most common themes, and we will go over them with you now. If you feel you have questions that we did not answer today, please feel free to reach out to us at investors@zomedica.com. With that, let's begin the Q&A.
Peter, the top question from investors is around the topic of a buyback. Why are we not buying back shares on the open market and instead doing a reverse split?
Yeah. Thanks, Elif. This is Peter. Obviously, the most asked about topic, requested topic, most commented topic. Let's start with the basics, the stuff the company has stated, you know, several times in the past. First and foremost, we are listening. We hear the shareholders out there, and we are always considering all options, including a buyback, to boost share price and regain compliance. That said, and I've said this over and over, we are data-driven, and the data around buybacks is very clear. The share price appreciation that you gain is almost always short term, and it's almost always unsustainable, while the cash you use to buy back the shares is permanent. We encourage everybody to go out and take a look at the data, and I think you'll find and reach the same conclusion.
We've also been very clear that preserving our cash to cover our burn and reduce losses through interest income are very important to us, as is investing in commercial expansion, the R&D and new products which were highlighted today, and being ready to acquire new companies and technologies without debt. These are. They far outweigh any short-term gains or share price appreciation that you would get from a share repurchase program, and that, in most cases, would be unsatisfying to the most of the folks out there. And we don't believe that we would be able to do a buyback large enough to have a meaningful impact on the stock price that would retain compliance over the long haul, nor would it attract the larger, long-oriented investors that we've been talking about.
So long answer, but the answer is no, there's no buyback plan.
Peter, the next question is around our compliance and ability to stay listed on the NYSE American. Can you please give us some feedback on this question?
Yeah, sure, Elif. Once again, I encourage everybody out there to review the many public comments we've made on this topic. We started back in September when the delisting notice was received. Larry and I spent a fair amount of time on the Q3 earnings call, which was held November 13th, 2023. We had a special call again on the 17th, and then Larry followed up, which, which I thought, a well-written CEO letter to the shareholders, that addressed it. But again, some of the highlights, first, debunking some misinformation out there. It is not true that we were 1-2 days from regaining compliance organically.
Larry explained this back in January that regaining compliance is at the discretion of the New York Stock Exchange, and it's usually after the stock closes for 30 trading days with an average at or above $0.20. There's no 8-day rule or 10-day rule or anything like that. The second area that we received a lot of questions, and certainly a lot of commentary, is why management isn't just simply requesting an extension. Again, we encourage you to review all the things we've talked about, and we've stated time and time again, we're working very closely with the New York Stock Exchange to avoid a delisting. Keeping in mind that we did file a plan with the exchange back in the fall, and that one of the primary drivers is to request a reverse split from you, the shareholders.
Why? Because that's the most direct way to regain, but more importantly, maintain compliance. That said, to answer the question directly, we, we will revisit the need for an extension request, but we first have to learn the results of the 80-to-1 split. There are no guarantees that we remain listed after March twelfth or an extension given, should our recommended proposal for the reverse split fail. So the conclusion, the most direct way for us to get to and maintain compliance, is an approval of the next topic, which I think you're going to ask me about, is a reverse split. Larry, anything to add?
I think you summed that up well, Peter.
Thank you.
Peter, I know you and Larry have spoken to this many times before, but can you please talk about the reverse split ratio and the thought process behind the calculation?
Yeah, sure, Elif, and we have. We've talked about it a lot. We've spent a lot of time analyzing the data. You know, we've been pretty clear, you know, 80%-85% of companies out there after they go down in value. It's everybody who's listed that as a comment, they're correct. After requesting or executing a reverse split, most companies do not fare well. Our management team, though, has been very transparent, that we feel our situation is different, and we've looked at companies. And it is true that 15% or 20% of the companies actually have done quite well after a reverse split. That's not a majority, but there are companies that do succeed, and they look more like what Zomedica looks like. What does that mean? That means they're commercial stage. They have revenue.
They have cash in the bank. Many of them had $75 million or $100 million, much like we have. So I encourage folks, nothing's guaranteed, right? But go look. Look at the data, and I think that you'll find our data is very accurate. Secondly, what do we know right now? We know in their current position, we're struggling to gain traction, expanding our investor base. That includes the long retail base, many of you. In fact, most of our cap table looks like that, and we thank you for your patience. But we are also looking to further institutionalize the stock. That comes in a lot of different flavors: pension funds, mutual funds, index funds, large family offices. And many of them, many have told us that the stock cannot be a penny stock.
It has to be $1, $3, or even $5. So then the comments come in, right? The comments come in and say, "That can't be true, Peter. There can't be that many that have told you that." And I don't know the exact number, but, but it's certainly a, a fair amount that have told us they cannot invest in Zomedica because they have minimum share price rules. So it's true that some don't have those rules, but others do not have that rule, but they also have a rule where they actually have to divest in companies like Zomedica when they trade over... When they're delisted and trade over the counter. So that dovetails into the next set of questions, right?
It's, "Why doesn't the company share the names of all these funds, Peter, that have these rules and, and want to write a check and invest in Zomedica? Share the name of the fund or the manager." Simply put, we're not gonna do that. We're not gonna share the names. In some cases, we're under a strict informal NDA, and others it's informal confidentiality. But we've been very truthful that there are... I don't know the exact number, but there are a fair amount, large and small funds, large retail investors, family offices, and even research analysts that have told us very explicitly they would consider an investment once a reverse split is approved. Now, the last part of the question, or maybe it was the first part of the question: "Why 80-to-1?
Why not a smaller amount?" And I think I've covered this extensively on the January call and many times before. We've looked at the data time and time again. We want to have a large enough float, whether it's 10 million, 12 million, 14 million shares post-split. The goal is to achieve a $20 price, or at the very least, be at or above $10. So that's the metrics we use. There are a number of different outcomes when we analyze the data. Some were even higher than 80-to-1, believe it or not, we settled on 80-to-1. Lastly, and I cannot state this point enough, over and over, that a reverse split in and of itself does not cause dilution. It does not, in and of itself, destroy the retail shareholder base.
It simply doesn't do that. And Larry and I have been very clear that if the reverse split is approved, we're not planning to go out and raise additional capital, if it's approved. The last point, and again, we've talked very extensively for a vote on a reverse split. I encourage you guys to take a look at the Glass Lewis reports, the ISS reports. The institutional folks generally follow these recommendations. These are not recommendations that we're involved in or we pay for. I know that's hard for some of, judging by the comments, for some of you to believe. But these are independent folks that have said that you should vote for a reverse split.
Yeah, Peter, I think you nailed it. I think the only thing I would remind people of is that the reverse split, it doesn't change the percentage ownership of a company that's owned by any shareholder, whether they're a retail shareholder or an institution. It means it also doesn't change the percentage owned by a group of investors, say, retail investors. They will own the same percentage in the aggregate the day after the reverse split, as they did the day before the reverse split. The only way that retail's percentage ownership of Zomedica goes down is if institutional investors step up and begin to buy shares in Zomedica from retail investors who choose to sell, likely because they like the price. And why would institutional investors or any new investors, for that matter, want to buy Zomedica shares post-split? Well, first, because they can.
They would no longer be inhibited due to the per-share thresholds that you just mentioned, whether they're individuals who won't buy penny stocks or any of the funds that you mentioned. And second, it's because shares in a company listed on a major exchange that has rapidly growing revenue, strong margins, and $100 million on the balance sheet with no debt, trading below book and close to cash, are typically viewed as an attractive entry point at which to buy shares.
Peter, we've received a number of questions about what we are planning to do to raise investor confidence. What is our plan forward to move the stock price up? And what is our strategy, valuations, and thoughts on being bought out?
Yeah, there's a lot to unpack there, Elif. And when we went through the questions, you and I, there was probably 50 or more that all kind of fell into the general category. So I figured we'd just start with the basics. You know, first off, and many of you know this, we have nearly a billion shares outstanding. Meaning that when someone says, "Hey, just take the stock to a dollar per share or even higher, say three dollars per share.
... You just simply multiply that and that creates a valuation of $1 billion or even $3 billion, right? And while that's a lofty goal, Larry and I would certainly like to be valued at that. Keep in mind that would imply multiples of 30 or more on next year's revenue guidance, and that's unrealistic in the short term. It's not realistic in the intermediate or longer term, for sure. But I just wanted to draw folks in that when these questions, they all fall back into a basic question of valuation. Next, we've been pretty satisfied with where we've taken the business. The revenue was nothing back when Larry started. I closed out 2021, in the short time he was here, at $4 million. He grew it to $19 million with the team.
We reported, or we expect to report out over $25 million for the year just ended, 2023. We've guided to $31 million-$35 million next year. Those are industry-leading growth rates, and you can extrapolate those out into the out years. If you do the math on the high end of the range, that's like a 40% growth rate. So we feel pretty comfortable that that's a nice growth rate to guide to. We've also guided the margins. We believe that, you know, that the margins will be 70% or higher over time. OpEx is flattening out. We're starting to see leverage, and I'll give more guidance if we have an earnings call next month on profitability and OpEx.
But it's fair to say we're approaching profitability are in our expenses. We haven't talked a lot about this. Mirrors a lot of other animal health companies when they were at this stage of their maturity or life. Also worth noting, this company gets a lot of comments on wasting, and I put that in air quotes, "shareholder money." On the contrary, you know, we have been pretty clear. We've reported that we've spent just over $100 million on five acquisitions. Those acquisitions, almost all of them, are nearly integrated. PulseVet and CC have been with us over a year, and they're performing at or above our expectations. I won't recap, but Greg Blair did a great job earlier today in the presentation, as did Ashley Wood and Evan St. Peter.
They highlighted all the exciting future products in the AI and new assays for TRUFORMA, right? So there's a lot of good stuff going on there. The sales piece with Kevin and Nicole went pretty, pretty well. They talked about having the sales team at or about full strength. Many of you complain that our commercial team is too big, while others have complained it's too small. So I don't know if it's right size, but we do know that we feel that we have the right boots on the ground right now to hit the guided numbers and grow the sales where we want them to in the future. And also on the marketing spend, we feel really good. Our marketing events are more than just marketing events.
Yeah, when this company started, it was virtually unknown. Now, albeit as a small force, but everyone recognizes the Zomedica name, and that's attributable to the marketing events that we do. Also, which was news to me when I joined the company, that in the booth, actual sales occur. These are working meetings. And instead of, you know, commenting on them, you know, Larry and I suggest come out, take a walk around the booth, talk to the folks. You'll see that we're competing really hard and in many cases, getting sales right at the booth. Lots of comments on, "Peter, why don't you just take the company private? Why don't you just sell it? When are you gonna be bought?" Right?
These are, these are all things to think about, and we do think about them. But the, the reality is, we're running this business to get to $100 million in revenue and beyond. We're working really hard to get profitable as quickly as feasible. And I have heard Larry say this. I've said it publicly. We're not running this business to be sold or look for a quick exit, a quick liquidity event. We are striving to take the business to a $500 million valuation, $1 billion and beyond. That's what we want. That's what you want. All of that said, the company is not for sale, but we are fiduciaries.
And if any offers come in for all or part of the business, we'll consider them, but there are no offers or any plans right now to sell the company.
There's a lot there, Peter. The only thing I would touch on would be the marketing spend. I think you highlighted that well. But also point out that our products, whether it's the TRUVIEW microscope, the only automatic slide prep or a brand-new product in a brand-new category, touchless monitoring, or the TRUFORMA assays that can't be done by other point-of-care instrumentation or the completely alone PulseVet system. All of these are really in their infancy, right? These are new products, and so we've got to not only get visibility of Zomedica out there, but we also have to convey the messaging to the potential users from their peers and colleagues.
So when we go to these conventions, these major trade shows, we're putting key opinion leaders on the podium, and they're talking about the benefits to the veterinarians that they've seen and enjoyed, and they're telling that story to their peers. That's why it's important that we spend the money on market development.
Yeah, good point, Larry. Thank you.
All right, so now we've got a question about management salaries. Peter, Larry, can you please speak to the salaries management is making, and why is compensation so high?
Yeah. Thanks, Elise. So, you know, I think everybody's entitled to their own opinion, whether it's high or low. So we'll just kinda stick to the facts here. You know, we are publicly traded, and our named executive compensation is documented in our annual filings. We also have an annual meeting, and that includes what's called say on pay. That is a non-binding resolution, but I will point to last year's number, where nearly 80% of the shareholders voted in favor of the executive pay structure that was outlined. But we always try to improve our disclosures. We're gonna benchmark, and we'll be doing additional benchmarking on our executive compensation and probably our directors. That's done independently every year.
But, lastly, I'd like to kinda talk about we just talked extensively about a reverse split. In no way in this compensation will a reverse split, if approved, benefit the management team, right? It will reduce the number of the options that I have, that Larry has, that in fact, every employee has by 80, and the strike price will be adjusted by 80x , just like the regular shareholder. So, in no way will management be enriching themselves by or benefiting from a reverse split that we're recommending. So, you know, we feel pretty confidently that our executive comp packages are in line with comparable companies, but I'll let Larry weigh in as well.
Well, Peter, I do take issue with one thing you said regarding us not benefiting from a reverse stock split. I think we, as well as every shareholder, benefits from a reverse split for all the reasons that we've discussed. Now, we do not, as you pointed out, benefit inordinately. Our option strike price has increased 80x . The number of options is reduced 80x , but we all benefit from attracting new buyers to potentially accumulate shares in Zomedica. You know, and with respect to the salaries, I think you summed it up well, but you know, I recruited the management team over the past 2 and almost a half years as we grew from fewer than 30 employees to today, around 150.
As senior management joined what was essentially a startup company, I didn't offer them top-dollar salaries, most being paid in the lower end of comparable public companies, even though the people themselves are experienced world-class leaders. Instead, they were issued stock options that they could help grow in value by growing the value of the company. We issue stock options to all Zomedica employees so that the interests of all employees are perfectly aligned with our shareholders. All benefit from share price appreciation. Now, a downside of this is that under SEC rules, when we issue options, a potential future value is determined by a Black-Scholes calculation, and the company records that as an expense, which makes up non-cash stock compensation. Of course, this isn't actually paid to the employee, and it can be significant. In my case, it's nearly two-thirds of total reported compensation.
Of course, all shareholders believe that their stock will grow in value in the future, as do I. But it's not cash today, it can't be spent, and it only happens with strong share price growth. Same thing with options.
All right, onto the next question. Peter, we're getting a lot of questions and comments about Zomedica not sharing enough information and not issuing enough press releases or positive news on the company. Can you please comment on this?
Yeah, sure, Elif. You know, again, keep in mind, we are publicly traded. We have Canadian and U.S. requirements, SEC requirements, very comprehensive list. It's, it includes a 10-K, which is our annual filing, our 10-Qs done quarterly, a proxy. We have to file 8-Ks and other forms as required. In addition, though, to all the required filings, which we're not required to do, the company hosts, like we're doing today, events to try to give a... put out as much information as possible. We host calls upon the filing of the documents I just named. We attend dozens of investor conferences, both virtually and in person. In fact, Larry and I, I think, attended a dozen or more. Over the past year, we've met with hundreds of investors and stakeholders.
We've also issued dozens of press releases during the time. So some may feel it's not enough, some may feel it's too much. I think philosophically, and I will let Larry weigh in, you know, the management team here feels on reporting stuff that matters. Meaningful news versus just purely PR, and I'll let Larry weigh in, but from where I sit, Elif, you know, I think we have quite, quite a bit of a public-facing presence. Larry?
No, you're right, Pete, and it's certainly not difficult to gain access to information about Zomedica, right? We issue press releases, as you mentioned, and then we post them all on our website. In addition, those various presentations that we make to investor groups, those are also all posted on the website. You go to zomedica.com, you go to the investor section, you look at events and presentations, and you'll see all the presentations. You can download them, you can review them. In fact, today's session will all be posted on the website as well. But it's also important to note that we're not looking to hype the stock. You know, we report news that matters.
Of course, there are some things that we're required to report, and we do all of that required reporting, and where we have some significant news, we'll put that out there, but we're not looking to pump the stock. I've actually seen a comment from a shareholder who apparently bought in over $2 and was asking us to please just pump the stock so that it could rise again to that level. They could then sell, and then we could go back to just reporting the facts. You know, that sounds humorous a bit, but it may be the perception of some folks as to what we should do. We don't share that view.
If you look back to the press releases that we've issued from the time I got here, every time we announced that we were going to launch a product in a given quarter, we've subsequently launched that product in that quarter. We're gonna continue to maintain that track record as we go forward to the future, being as transparent as we possibly can as we move forward.
... All right, now on to a question about our business opportunity. Larry, what is our total addressable market and market penetration, and how do you feel about our future capacity and ability to penetrate the market?
So I, I would suggest, first of all, I'd encourage people to take a look at the slides and the presentation that preceded this Q&A session, because we outlined not only our total addressable market for the company, but also on an individual product basis. But having said that, the market that we compete in is large, $62 billion in vet services in the United States alone, in 2023. And that doesn't count the rest of the world market, which is, you know, potentially as large as the US market. When we think about the addressable market, what we-- the way we calculate it is we look at all of the practices in the country, and there are 30,000 small animal practices and about 5,000 either equine only or mixed practices.
We ask, "What if all of these practices had a VETGuardian? What if they all had a TRUVIEW? What if they all had a TRUFORMA and used all of our cartridges? What if they all used a PulseVet on average, you know, 3x a week, as equine veterinarians do, and so on?" We calculate that times the price of our product, and that gives us the total addressable market. Well, we calculate that the annual recurring revenue, annual market in the U.S. alone is $2.5 billion, using those, that kind of calculation. $2.5 billion, we did sales of $25 million, just a little bit over, but $25 million in 2023. That's barely scratching the surface of the total addressable market, just in the U.S. alone.
And remember, we're planning on launching, while 15%-20% of our revenue currently comes outside the U.S. from PulseVet and Assisi sales, we're planning on not only expanding distribution of those products, but launching our remaining products in the international markets this year. So when you think about it, we've barely scratched the surface. There's huge market potential. What's required to get after it? Market development, getting our name out there, deploying the sales force, and frankly, just hard work, blocking and tackling over the quarters and months to come.
All right. Peter, finally, would you like to touch on some other items investors have brought to your attention that may not have been covered in specific categories?
Yeah. Thanks, Elif, and you're exactly right. You know, we tried to do our best job. I think we took hundreds of questions and comments and kind of mapped them into six or seven broad topics that we just talked about here. But a few stragglers. First was, does management follow the stock closely, and can you comment about stock manipulation, right? So we do follow the stock closely. We have a business to run, but we're not in a vacuum. We're keeping an eye on that stock price every day. That said, we don't think about manipulation at all. Short trading, day trading, other trading tactics, that's not what we're about here. We have no knowledge of any of those practices, nor do we spend a lot of time thinking about them.
Any comments that Larry or I make in these areas would be speculative and, quite frankly, inappropriate. I don't know, Larry, if you have anything to add there?
No, I agree with you completely.
Great. The next one is, you know, how did people get on the board? You know, how... Where do these directors come from? And candidly, I was a little surprised. We got that question more than once, right? You know, we're publicly traded. The shareholders get to vote for those directors. That occurs annually. We just did it last year. Our directors were duly elected. Many received over 90%, some even higher than that, right? And I think the lowest one, Elif, was right around 86%, and that was only on one occasion. So, the votes were in for our directors. That said, the board is elected, but the CEO isn't. Neither is the CFO. So the board is tasked with putting a management team, a CEO in place.
We don't vote on those, but there were a few questions around that. And last one, I was also kind of surprised about questions around the stability of our supply chain and specifically shortage of BAW sensors. And again, I got to be honest, I was a little surprised by those. Those BAW sensors are used in our TRUFORMA product line. You know, I'll just come right out there. We have no known supply chain issues. I did reach out to Tony Blair, who presented earlier today, and we confirmed that we have an ample inventory of everything, really, especially the BAW sensors. We expect to meet demand on all the products that we outlined today.
The BAW sensor supply chain should only get stronger as we acquired QBT late last year. So those were a few straggling questions that didn't bundle nicely in any of the other broader topics that we covered earlier.
Thank you.
I think there's one more, Peter, that I think people are wondering about and have asked, and that is: What happens if it's a no on the 28th? I'll go ahead and answer and then ask you to weigh in as well. My answer is that it will largely be up to the NYSE American response to a request for an extension that we would, of course, make. It would be up to them. As when they originally notified us of a potential delisting, they would more than likely want to know what our plan is to regain compliance. Since, as you covered earlier, even with $100 million in liquidity, we couldn't buy enough shares to significantly reduce the float to permanently address the stock price issue, and a reverse split would have just been defeated.
It would come down to expectations of the share price rising organically to average above $0.20 over a 30-day period. We would have some confidence in that because we continue to increase revenues, we have strong margins.... We have plenty of liquidity. We think that we are a very good investment for people, and we would, you know, have expectations that as we continue to increase the value of the company, that the perception of value of the company and would be reflected in the share price. Having said that, it would be up to the NYSE American, and if they said no to an extension, then we would be delisted, and we would go over the counter. If they said yes, we would have through the extension period for our current pool of potential investors to push that price above $0.20.
No, I think that's exactly right, Larry. You know, and they've told us as much. They do believe in our execution story, right? And candidly, everything we told them back in September, I just updated them a week or so ago, and we did an amazing job of delivering at or above what we told them we were gonna do. But it will be up to them, and you know, there's a variety of other options that we'll need to consider, but nothing is guaranteed after March 12th, in the event that it would fail.
Thank you.
In closing, let me thank you for your participation today. The fact that you took time out of your busy schedules to come in to this webinar and to listen to the presentations shows that you care about your company and about the clients that we serve. Hopefully, you saw from the various presentations that were made, that we're on the right track. We have great products that have a meaningful impact on our customers and on the pets that they take care of. I'd like to assure you as well that we care. We care about building a profitable company and seeing the shares in that company reflect the growth. We should all agree that what we're doing is important in the lives of veterinarians and most importantly, in your pets and ours.
We may disagree on the reverse split, but we sincerely believe that our current proposed split is the best way to see Zomedica shares realize the potential that you all saw when you first became investors. Thank you.
I'm not.
Thank you, Larry, Peter. This now concludes our Investor Day presentation. Thank you very much for joining us. The webcast will be available for replay on our website at zomedica.com under Events and Presentations. If you have questions that we have not been able to address, please submit them to us at investors@zomedica.com. Thank you again.