Vivos Therapeutics (VVOS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 17% year-over-year to $3.9 million, driven by higher product sales and increased service revenue, with reduced discounts and lower myofunctional therapy revenues.

• Gross profit increased 34% to $2.3 million, with gross margin improving to 60% from 53% in Q3 2023.

• Operating loss for Q3 2024 decreased 27% year-over-year to $2.6 million, reflecting ongoing cost-cutting initiatives.

• Net loss for Q3 2024 was $2.6 million, up from $2.1 million in Q3 2023, but nine-month net loss improved to $8.3 million from $9.3 million.

• Cash and cash equivalents reached $6.3 million at quarter-end, up from $1.6 million at year-end 2023.

Financial highlights

• Product revenue for Q3 2024 grew 34% year-over-year to $2.0 million, with 1,954 oral appliance arches sold and lower discounts.

• Nine-month total revenue was $11.3 million, up 7% year-over-year; product revenue up 17%.

• Gross profit for Q3 2024 was $2.3 million (up from $1.7 million in Q3 2023); nine-month gross profit: $6.9 million (up from $6.2 million in 2023).

• Sales and marketing expenses fell 46% in Q3 and 29% for the nine months, reflecting lower commissions and digital marketing spend.

• Operating loss for Q3 2024 was $2.6 million, an improvement from $3.6 million in Q3 2023; nine-month operating loss down 36%.

Outlook and guidance

• Q4 2024 is a transition quarter as the company shifts to a new alliance-based sales and distribution model, with significant growth anticipated in 2025.

• Management expects flat or slightly higher revenue in Q4, with a path to positive cash flow from operations by mid-2025, driven by the new model.

• Additional financing will be required to fund operations over the next twelve months; management is exploring further equity raises.