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 shift away from VIP enrollments toward provider-based alliances and acquisitions.

• Operating expenses declined 21% to $20.2 million, resulting in a 35% decrease in operating loss to $11.2 million compared to 2023.

• The company pivoted to a new marketing and distribution model focused on alliances and acquisitions of sleep testing clinics, aiming for higher margins and broader patient access.

• Over 16,000 devices were placed in 2024, nearly double the prior year, with international expansion into the Middle East exceeding forecasts.

• Over 58,000 patients treated worldwide and more than 2,000 dentists trained in The Vivos Method as of year-end 2024.

Financial highlights

• Product revenue rose to $7.9 million from $6.3 million, with a 71% reduction in discounts offered.

• Gross margin remained steady at 60% for both 2024 and 2023.

• Sales and marketing expenses dropped to $1.7 million from $2.5 million, and G&A expenses fell by $4.6 million to $17.9 million.

• Operating loss improved to $11.2 million from $17.3 million year-over-year.

• Cash and equivalents at year-end were $6.3 million, up from $1.6 million, following $17.9 million in equity financing.

Outlook and guidance

• Revenue from new alliances, such as 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 more affiliations and acquisitions planned.

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

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

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