EMERYVILLE, Calif. - NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) announced a significant increase in sales for its Avenova® eye care products during the recent Amazon Prime Day event. The company reported that sales rose 17% compared to the same event in 2023 and showed a 40% increase from the 2022 event.
The two-day sale, which took place on July 16-17, 2024, marks a new sales milestone for NovaBay's Avenova products. CEO Justin Hall attributed the record sales to attractive discounts offered to both new and repeat customers. Hall emphasized the company's commitment to providing a comprehensive solution for the estimated 25 million Americans affected by dry eye disease.
Avenova, NovaBay’s flagship product, is a part of a full portfolio designed to address various aspects of dry eye treatment. The product range includes the Avenova Lid & Lash Solution, which is used to remove debris and microorganisms from around the eye, Avenova Lubricating Eye Drops for instant relief, a Warm Eye Compress, and the i-Chek by Avenova for monitoring eyelid health. The company also offers product bundles tailored to meet individual needs.
NovaBay's Avenova Lid & Lash Solution is manufactured in the U.S. and is recommended by eyecare professionals for conditions like blepharitis and dry eye disease. The solution is based on NovaBay's patented, stable, and pure form of hypochlorous acid.
The reported sales figures are based on a press release statement from NovaBay Pharmaceuticals, Inc. The company's products are available directly to consumers through online platforms, including Amazon.com (NASDAQ:AMZN) and Avenova.com.
NovaBay cautions that the press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.
In other recent news, NovaBay Pharmaceuticals has made significant strides in its recent developments. The company reported a 9% increase in its eyecare segment's net revenue for the second quarter and the first half, primarily driven by heightened sales of Avenova-branded products through online channels. The preliminary net revenue for the second quarter was announced at $2.4 million, and $5.0 million for the half-year.
In addition, NovaBay has priced its public offering of common stock and warrants, expected to generate gross proceeds of approximately $3.5 million. The underwriter, Ladenburg Thalmann & Co. Inc., has been granted a 45-day option to purchase additional shares and warrants to cover over-allotments.
NovaBay also announced a 20% discount on its Avenova-branded eyecare products during this year's Amazon Prime Day. This aligns with the company's strategy of converting physician-dispensed channel customers to over-the-counter sales, particularly through Amazon.
Lastly, NovaBay reported record sales for its Avenova line of products, noting a significant increase of over 20% compared to the previous year. Despite a net loss of $3.6 million for the quarter, the company managed to maintain a steady gross margin of 68% and reduced its sales and marketing expenses by half.
InvestingPro Insights
NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) has recently celebrated a surge in sales for its Avenova eye care products, yet the company's financial health and market performance raise concerns. Investors should note that while the company's revenue has grown by 11.49% over the last twelve months as of Q1 2024, NovaBay has not achieved profitability during this period. The negative operating income margin of -34.82% indicates that expenses exceed revenues, which is reflected in the basic and diluted EPS (Continuing Operations) standing at a steep -66.72 USD.
Moreover, the stock's price has experienced a sharp decline, with a one-year total return of -97.43%, highlighting the significant risks associated with investing in the company. The high price volatility, as mentioned in one of the InvestingPro Tips, further underscores the need for cautious investment strategies when considering NovaBay's stock.
Investors eyeing NovaBay for potential opportunities should be aware of the company's moderate level of debt and the absence of dividend payouts, which can be crucial factors in investment decisions. For those seeking more in-depth analysis and additional InvestingPro Tips, which currently number 13 for NovaBay, visiting https://www.investing.com/pro/NBY can provide valuable insights. To access these tips and more, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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