EMERYVILLE, Calif. - NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) has announced a 20% discount on its Avenova-branded eyecare products during this year's Amazon (NASDAQ:AMZN) Prime Day, set for July 16-17. The promotion aligns with National Dry Eye Awareness Month and aims to support the 25 million Americans affected by the condition.
Justin Hall, CEO of NovaBay, highlighted the success of previous Prime Day events and the company's intention to attract both existing and new customers with discounts. NovaBay reported a significant 123% increase in the number of Avenova Subscribe & Save customers on Amazon since early 2022, reinforcing the importance of the e-commerce platform for the company's sales strategy.
The Avenova product line, designed for various steps of at-home dry eye treatment, includes solutions for lid and lash care, lubricating eye drops, warm eye compresses, and devices for monitoring eyelid health. NovaBay's portfolio is scientifically developed and caters to individualized consumer needs.
Avenova Antimicrobial Lid & Lash Solution, NovaBay's flagship product, is manufactured in the U.S. and is often prescribed by eyecare professionals for conditions such as blepharitis and dry eye disease. It has been proven in vitro to effectively kill a broad spectrum of bacteria without irritating, making it safe for regular use.
Alongside the over-the-counter Avenova line, NovaBay also markets Avenova Allograft, a prescription-only amniotic tissue product available through eyecare professionals nationwide.
This news article is based on a press release statement from NovaBay Pharmaceuticals, Inc.
In other recent news, NovaBay Pharmaceuticals, Inc. reported a 9% increase in its eyecare segment's net revenue for the second quarter and the first half of 2024, 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, with expectations for the full year's revenue to reach approximately $10 million. Despite a net loss of $3.6 million for the quarter, the company maintained a steady gross margin of 68% and reduced its sales and marketing expenses by half.
NovaBay also reported record sales for its Avenova line of products, noting a significant increase of over 20% compared to the previous year. The company's first-quarter sales rose by 13%, primarily driven by online channels, thanks to the expanded Avenova product range.
In addition, NovaBay has entered a co-marketing agreement with Eyenovia (NASDAQ:EYEN) and is focusing on converting physician-dispensed channel customers to over-the-counter sales, especially through Amazon.
These developments come as NovaBay aims to capitalize on the anticipated growth of the US dry eye market, projected to reach $4.7 billion by 2030. The company's strategic partnerships and record sales indicate a focus on growth, with an update on its progress expected in the next quarterly call.
InvestingPro Insights
As NovaBay Pharmaceuticals, Inc. (NYSE American: NBY) gears up for its promotional event during Amazon Prime Day, investors may be weighing the potential impact on the company's financials. According to recent data from InvestingPro, the company's revenue has been growing, with an 11.49% increase in the last twelve months as of Q1 2024, and a quarterly revenue growth of 12.48% in Q1 2024. This suggests that NovaBay's sales initiatives, such as the upcoming Prime Day discount, could continue to drive revenue growth.
However, NovaBay's financial health is not without its concerns. The company's operating income shows an adjusted loss of -5.23M USD, and its operating income margin stands at -34.82% for the same period. These figures indicate that despite increasing revenues, profitability remains a challenge for the company. Additionally, the gross profit margin is relatively strong at 53.86%, which could imply that while NovaBay is effective at managing the cost of goods sold, other expenses are impacting the bottom line.
Investors should note that NovaBay's stock price has experienced significant volatility. Over the last year, the price total return has plunged by -91.8%, reflecting investor sentiment and market conditions that have affected the stock's performance.
For those considering investing in NovaBay, it's important to review the full spectrum of financial data and market performance. NovaBay operates with a moderate level of debt, and analysts do not anticipate the company will be profitable this year. Furthermore, the valuation implies a poor free cash flow yield, which could affect long-term investment returns.
For additional insights and to keep abreast of the latest financial metrics and analyst projections for NovaBay, investors can access more InvestingPro Tips at https://www.investing.com/pro/NBY. There are currently six additional tips available that could further inform investment decisions. For those interested in leveraging the full suite of InvestingPro features, 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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