TRxADE Health Q3 2022 Earnings Call Transcript
In an exclusive interview with AlphaStreet, Trxade’s chief executive officer Suren Ajjarapu spoke about the company’s third-quarter performance and provided updates on its operations and future plans.
Of late, the revenue share of Trxade Prime has been growing steadily. Do you see Prime outpacing the core Trxade segment in the near future?
Revenue generated by our TRxADE platform sales is steadily increasing and we expect that to continue. Revenue generated by TRxADE Prime decreased in the third quarter while we worked to implement software automation and restructure overhead costs to build a strong foundation for continued growth as we move forward. Yes, there is a possibility that Trxade Prime can outperform on revenues.
Do you expect recent improvements on the cost front to continue in future quarters; and what is your plan for reducing expenses without affecting business growth?
We continue to focus on expense reduction where it is appropriate. In the third quarter of 2022, we implemented additional software automation to reduce expenses without affecting future growth; we will continue to evaluate innovations as we move forward. Also, we mentioned two quarters in a row that we are looking for alternative ways and means to find partners for our B2C assets, which can further reduce expenses.
Can you talk a bit about Trxade’s strategy for effective pricing, in terms of growing margins without putting strain on customers?
We focus on developing strategic partnerships with vendors that share a similar mission and goal of providing value to our independent pharmacies with competitive pricing.
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How do you look at Trxade’s prospects in 2023, considering the lingering COVID uncertainties and unfavorable macro environment?
We still see some effects of COIVD; definitely, unfavorable macroeconomics play part in small businesses that are our true customers (independent pharmacies), it is Trxade goal to make them sustainable by using our Trxade marketplace and safeguard their diminishing margins, and also we continue to add new members and added new areas like clinics onto our marketplace, which actually improve our stability and growth prospects for 2023 and beyond.