Why did TXMD's Q3 2023 earnings fall short of forecasts?

TherapeuticsMD Inc.'s (TXMD) Q3 2023 earnings fell short of forecasts due to several key factors: 1. **Transition to Pharmaceutical Royalties**: The company's significant shift from a women's healthcare company to a pharmaceutical royalty company had a substantial impact on its financial performance. This transition involved ceasing research and development and commercial operations, focusing solely on royalty collection. 2. **Decrease in Operating Expenses**: While the transition to a royalty-based business model reduced operational risks, it also meant a decrease in revenue from license agreements, which was negative $0.1 million in Q3 2023 compared to revenue related to sales to another licensee of $0.4 million in Q3 2022. This decrease contributed to the shortfall in earnings. 3. **Strategic Alternatives Exploration**: The company has been exploring strategic alternatives, including acquisitions, mergers, or other business combinations, which could indicate underlying issues with the core business that need to be addressed. In summary, TXMD's Q3 2023 earnings fell short of forecasts due to the transition to a new business model, decrease in operating expenses, and exploration of strategic alternatives.