Venus Concept (VERO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $15.8 million, down 13% year-over-year, primarily due to a strategic shift from subscription to cash system sales and macroeconomic headwinds; FY24 revenue was $64.8 million, down 15% year-over-year, with over 60% of the decline attributed to the shift away from subscription sales.

• U.S. cash system sales grew 27% year-over-year and represented 87% of total U.S. system sales in Q4, reflecting successful execution of the new strategy.

• International business is transitioning from direct markets to distributor partnerships, with distributor sales more than doubling year-over-year in Q4 and network expansion in Taiwan, Colombia, and India.

• Leadership changes and a new management structure were implemented to support growth and profitability.

• Operating loss improved to $6.7 million in Q4 2024 from $7.6 million in Q4 2023; FY24 operating loss was $27.2 million, slightly better than $28.3 million in FY23.

Financial highlights

• Q4 2024 total revenue was $15.8 million, down $2.4 million or 13% year-over-year; FY24 revenue was $64.8 million, down 15% year-over-year.

• Lease revenue declined 58% year-over-year in Q4, offset by a 10% increase in cash systems revenue and sales of products and services; product systems revenue rose 15% in Q4 but fell 9% for FY24.

• Gross profit for Q4 2024 was $10.9 million, down 10% year-over-year; gross margin improved to 69.1% from 66.5% in Q4 2023.

• Operating expenses in Q4 2024 declined 11% year-over-year, driven by reductions in G&A, selling/marketing, and R&D.

• Net loss attributable to stockholders for Q4 2024 was $8 million ($11.23/share), improved from $11.1 million ($20.14/share) in Q4 2023; FY24 net loss was $47 million ($71.17/share), compared to $37.1 million ($68.11/share) in FY23.

Outlook and guidance

• No full-year 2025 financial guidance provided due to ongoing strategic review and lender discussions.

• Q1 2025 revenue expected to be at least $14 million.

• Management expects business performance to improve versus prior year, with structural changes largely complete.

• New body system launch anticipated in early second half of 2025, expected to drive growth.