Vivos Therapeutics (VVOS) Q4 2024 earnings summary

Executive summary

• Revenue increased 9% year-over-year to $15 million, driven by a 26% rise in product revenue and a strategic pivot to provider-based alliances, including a key partnership with Rebis Health Holdings.

• Operating expenses declined 21% to $20.2 million, resulting in a 35% decrease in operating loss to $11.2 million.

• The company launched a new marketing and distribution model focused on alliances and acquisitions of sleep testing clinics, aiming to access more OSA patients and increase per-case profitability.

• FDA granted 510(k) clearance for the DNA appliance to treat moderate to severe OSA in children and adults, expanding the addressable market and clinical credibility.

• Raised $17.9 million in equity, including a $7.5 million investment from New Seneca Partners, strengthening liquidity and supporting the business model pivot.

Financial highlights

• Product revenue rose to $7.9 million from $6.3 million, with 16,182 oral appliance arches and guides sold, nearly double the prior year.

• Gross margin remained steady at 60% for both 2024 and 2023, with gross profit rising to $9.0 million from $8.3 million.

• Sales and marketing expenses dropped to $1.7 million from $2.5 million, and general and administrative expenses fell by $4.6 million to $17.9 million.

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

• Net loss for 2024 was $11.1 million, improved from $13.6 million in 2023.

Outlook and guidance

• Revenue from new alliances, particularly with Rebis, will begin contributing in 2025, with acceleration expected in Q2 and Q3.

• 2025 is projected to be materially better in both top-line revenue and net profits, with additional affiliations and acquisitions expected to further boost results.

• New marketing and distribution model anticipated to increase patient access, case closures, and revenue per case.

• Each 1,000 newly diagnosed OSA patients exposed to the new model could generate $38 million in annual revenue at 50% contribution margins.

• Management expects continued improvements in results for 2025, aiming for increased revenues and cash flow positive operations.