Venus Concept (VERO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $16.6 million, down 17% year-over-year, mainly due to tighter credit markets, restructuring, and exit from unprofitable international markets, but in line with guidance.

• Net loss attributable to stockholders was $20 million ($3.05/share), compared to $7.4 million ($1.35/share) in Q2 2023, driven by a $10.9 million non-cash pre-tax loss on debt extinguishment.

• Adjusted EBITDA loss was $4.1 million, up 4% year-over-year; operating loss reduced by 3% to $5.6 million.

• Cash used in operations for Q2 was $1.3 million, a 37% year-over-year reduction; for H1 2024, cash used in operations was $4.2 million, a 47% reduction.

• Company continues to review strategic alternatives, including financings, mergers, or asset sales, to maximize shareholder value.

Financial highlights

• Q2 2024 revenue was $16.6 million, down from $20.1 million in Q2 2023; US revenue declined 5% to $9.3 million, international revenue declined 29% to $7.3 million.

• Gross margin improved to 71.5% from 70.8% in Q2 2023.

• Operating expenses fell 13% to $17.4 million; selling/marketing down 16%, G&A down 10%.

• Cash and equivalents were $5.7 million as of June 30, 2024; total debt was $46 million, down from $74.9 million at year-end 2023.

• Lease program revenues accounted for 34% of system revenues in Q2 2024, up from 26% a year ago.

Outlook and guidance

• No full-year 2024 financial guidance provided due to ongoing strategic review and lender discussions.

• Q3 2024 revenue expected to be at least $17 million, a 3% sequential increase.

• Targeting cash flow breakeven in the second half of 2025.

• Management expects continued macroeconomic headwinds, high interest rates, and inflation to impact demand and financing.

• Some supply chain challenges anticipated in H2 2024 due to geopolitical disruptions.