Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF), a leading psychedelic-assisted therapy provider, has achieved an outstanding five-fold increase in revenue over the past year.
On Thursday, the psychedelic-assisted therapies company release its financial results for the second quarter ended Feb. 28 this year and saw an increase of year-over-year revenue of 581 per cent to $5.4 million. Quarterly revenue decreased by 5.5 per cent because of seasonal impacts such as fewer operating days as a result of the holidays and February being a short month.
The company also reported an increase in gross margin to 39.3 per cent from 29.1 per cent in the previous quarter which was because of the Novamind acquisition between periods and the offering of higher-margin services.
Sequentially, gross margin declined due to fewer revenue-producing days. Gross profit totalled $2.1 million in the second quarter which was an increase from $0.2 million last year. By the end of the second quarter, the company reported a cash balance of $19.7 million.
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Numinus Wellness Clinic Network generated $4.7 million in revenue during Q2 2023, showing a significant increase of 596.9 per cent from the same period last year. However, there was a 9.9 per cent decline in revenue from the previous quarter, largely due to a reduction in operating days.
During Q2 2023, Numinus completed over 19,350 client appointments, including group and one-on-one therapy sessions, neurology-related appointments, and TMS and Ketamine/Spravato medicine appointments. The average number of appointments per operating day increased by 4.4 per cent when adjusted for seasonal impact. Around 8.7 per cent of the appointments were made by new clients, while 16.0 per cent and 6.3 per cent of the appointments were related to KAT or Ketamine/Spravato medicine and TMS services, respectively.
Numinus aims to attract more full-time practitioners by transforming its practitioner model in Canada to drive greater engagement and clinic utilization rates, which may result in fewer practitioners accepting more client appointments. As of the end of Q2 2023, Numinus had 133 practitioners providing treatments through its wellness clinics and virtual services, a 3.6 per cent decrease from the previous quarter.
“We are excited about our recently announced training and licensing growth initiatives, which position Numinus as a clear leader in delivering and supporting psychedelic-assisted therapies, and contribute to much-needed clinical infrastructure for a sector that is on the verge of significant expansion,” said Payton Nyquvest, Founder and CEO.
“As we believe that access to these therapies is pending with regulatory reform, the development of clinical protocols, practitioner training, and insurance payor expertise is becoming increasingly important,” Nyquvest said.
“Given our expansive and growing capabilities, we are one of the best-positioned companies to lead the next stage of psychedelic-assisted therapies by providing the necessary infrastructure to deliver these innovative treatments.”
Nyquvest remarked on the dynamics of the industry and explained that Numinus’ cautious and low-cost strategy towards expansion, as well as its varied range of service offerings, are positioning the company as a leader within the evolving sector.
Numinus has multiple clinics that provide diverse mental health services, an expanding research business that is creating trustworthy associations with drug developers, and an extended training program that aids in the development of future practitioners. Consequently, Numinus is expected to gain an advantage from decreased competition.
Company stock dropped by 6.82 per cent on Thursday to $0.20 on the Toronto Stock Exchange.