Harrow Inc (HROW)

Shares of Harrow Health (HROW) dropped by 36.01% from $12.83 to $8.21 in the trading on Tuesday, Novemeber 14, 2023. The reason why HROW is down today is due to weak Q3 results and lower revenue outlook.

• Q3 results: In Q3 2023, Harrow Health achieved record revenues of $34.3 million, a 50% increase compared to the prior-year quarter. However, the company also reported a GAAP net loss of $(4.4 million). Adjusted EBITDA showed strong growth, reaching $9.2 million, a significant 270% increase compared to the previous year's quarter. While the revenue increase was driven by branded pharmaceutical products (BPPS), some areas of the business, such as the "Fab Five" products and the compounding business, underperformed. The delay in implementing marketing and sales efforts for the "Fab Five" products resulted in a revenue shortfall of approximately three months compared to forecasts.
• Lower revenue guidance: Despite these challenges, Harrow Health remains optimistic about the future. The company has adjusted its 2023 financial guidance to revenues of $129 million to $136 million and Adjusted EBITDA of $36 million to $41 million. Looking ahead to 2024, Harrow Health anticipates revenues exceeding $180 million, excluding contributions from TRIESENCE, and is confident in its strategic actions to position itself for a successful year.