On November 14, 2024, Vivos Therapeutics Inc (VVOS, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. Vivos Therapeutics Inc, a medical technology company, focuses on developing non-surgical, non-invasive, and cost-effective solutions for sleep-disordered breathing, including obstructive sleep apnea (OSA). The company reported a 17% increase in quarterly revenue, reaching $3.9 million, although it fell short of the analyst estimate of $4.06 million. The company's earnings per share (EPS) was -$0.40, which was better than the estimated -$0.79.
Performance and Challenges
Vivos Therapeutics Inc's performance in the third quarter of 2024 highlights both achievements and challenges. The company reported a significant 17% increase in revenue compared to the same period last year, driven by higher product sales and reduced discounts on Vivos appliances. However, the company continues to face challenges with a net loss of $2.6 million, although this represents an improvement from the $3.6 million loss in the third quarter of 2023. The reduction in operating loss by 27% year-over-year underscores the company's ongoing cost-cutting initiatives.
Financial Achievements and Industry Impact
Vivos Therapeutics Inc's financial achievements are noteworthy within the Medical Devices & Instruments industry. The company's gross profit rose to $2.3 million, with a gross margin increase to 60% from 53% in the previous year. This improvement is crucial as it reflects the company's ability to enhance profitability despite ongoing challenges. The company's strategic initiatives, including a $4.3 million equity offering, have bolstered its cash position to $6.3 million, enhancing its financial stability and capacity for future growth.
Key Financial Metrics
Key financial metrics from Vivos Therapeutics Inc's earnings report provide insights into its financial health:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $3.9 million | $3.3 million |
| Gross Profit | $2.3 million | $1.7 million |
| Operating Loss | $(2.6) million | $(3.6) million |
| Net Loss | $(2.6) million | $(2.1) million |
| Cash and Cash Equivalents | $6.3 million | $1.6 million (Dec 2023) |
Analysis and Future Outlook
Vivos Therapeutics Inc's strategic focus on cost reduction and revenue growth is evident in its improved financial performance. The company's recent FDA clearance for treating moderate to severe OSA in children and new CPT medical codes from the American Medical Association are expected to drive future revenue growth. These developments, coupled with the company's new marketing and distribution model, position Vivos Therapeutics Inc for potential expansion and increased market penetration.
Kirk Huntsman, Vivos’ Chairman and CEO, stated, “Today, we reported a 17% increase in third-quarter topline revenue as we leverage our proprietary technology and treatment protocols, which offer highly effective treatment alternatives for OSA patients. Our third-quarter results mark the ninth consecutive quarter of year-over-year decreases in operating expenses as we continue to focus on costs as we seek to grow revenue.”
Overall, while Vivos Therapeutics Inc faces ongoing challenges, its strategic initiatives and financial improvements provide a foundation for potential growth in the competitive medical technology sector. Investors and stakeholders will be keenly watching the company's progress as it aims to achieve positive cash flow from operations by mid-2025.
Explore the complete 8-K earnings release (here) from Vivos Therapeutics Inc for further details.
