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 gross margin improving to 60% from 53% in Q3 2023.

• Operating expenses declined for the ninth consecutive quarter, down 8% year-over-year in Q3 and 21% for the nine-month period.

• Operating loss decreased by 27% year-over-year to $2.6 million in Q3 2024; net loss for Q3 was $2.6 million, with a nine-month net loss of $8.3 million, improved from $9.3 million in the prior year.

• Strategic shift to an alliance-based sales and distribution model, including a partnership with Rebis Health Holdings, is underway to expand patient access.

• Recent FDA clearances for pediatric and severe OSA, plus new insurance CPT codes, are expected to drive future growth.

Financial highlights

• Q3 2024 revenue: $3.9M (up 17% YoY); nine-month revenue: $11.3M (up 7% YoY).

• Q3 gross profit: $2.3M (up from $1.7M YoY); gross margin: 60% (vs. 53% YoY); nine-month gross profit: $6.9M (up from $6.2M YoY).

• Q3 operating loss: $2.6M (down 27% YoY); nine-month operating loss: $8.4M (down 36% YoY).

• Q3 net loss: $2.6M (vs. $2.1M YoY); nine-month net loss: $8.3M (vs. $9.3M YoY).

• Cash and equivalents at September 30, 2024: $6.3M, up from $1.6M at year-end 2023.

Outlook and guidance

• Q4 2024 is a transition quarter as the new alliance model ramps up; revenue expected to be flat or slightly up sequentially.

• Significant revenue growth anticipated in 2025 as new sleep center locations come online and the alliance model scales.

• Path to cash flow positive by mid-2025 relies primarily on revenue growth from direct-to-patient sales, not further cost cuts.

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