June Data Review:
The New Normal
With the COVID-19 outbreak still in full force, hospitals are assimilating to a new normal. Curbside care is still very much a part of the veterinary life landscape, but despite this hurdle, the industry is finding itself in positive territory: June saw some of the best growth since the start of the pandemic. All major KPIs (Revenue, Transactions, ATC, and New Clients) experienced growth for the month. Obviously, the takeaway is that caring for pets must continue.
Revenue is the product of Transactions and Average Transaction Charge (ATC).
Overall, June revenue was up an emphatic 17%–by far the strongest revenue growth seen since the start of the downturn in March. Last month also saw a turn from the negative transaction growth we saw in March, April, and May, to positive growth. With Transactions seeing growth and continued ATC growth, this fueled the strong positive revenue we saw in June.
Below is a breakdown of revenue category performance for June 2020 compared to June 2019. All major revenue categories experienced growth in June, aside from Dietary Product Sales and Boarding.
Transactions can be thought of as volume of visits into the hospital, and that’s obviously where we’ve seen some major negative impacts.
Volume has been the hardest hit KPI through the pandemic, but June took a turn to positive. Overall Transactional Growth for June was 2.8%, the first time we have seen this KPI in the black since the start of COVID-19.
Average Transaction Charge is the average amount spent during a visit.
Since the start of the pandemic, ATC has shown consistent growth over prior periods and is up 13.8%. Curbside care is beginning to feel like standard operating procedure in veterinary practices, which could be what is contributing to continued ATC growth. It’s possible that clinics are finding efficiencies in curbside care, something we commented on in May.
New Client Growth also saw positive 15.1% growth over June of last year. Only four days last month did not experience new client growth. This likely can be attributed to increased pet ownership during the crisis.
Be sure to keep up with our daily stats on iVET360’s dedicated COVID-19 site to see how you are faring against the rest of the industry. We also invite you to take advantage of three complimentary months of our Pulse reporting platform so you can more easily and accurately monitor your business and navigate this “new normal”.