Revenue Performance - Total revenue for Q4 2024 decreased by $2.4 million, or 13%, to $15.8 million compared to Q4 2023[6] - Revenue from the United States in Q4 2024 was $10.3 million, down 13% year-over-year, while international revenue was $5.5 million, also down 13% year-over-year[4] - For FY 2024, total revenue decreased by $11.5 million, or 15%, to $64.8 million compared to FY 2023[13] - Revenue for the year ended December 31, 2024, was $64,833 million, down 15% from $76,354 million in 2023[24] - The company expects total revenue for Q1 2025 to be at least $14.0 million[15] Profit and Loss - The operating loss for Q4 2024 was $6.7 million, an improvement from the operating loss of $7.6 million in Q4 2023[9] - Net loss attributable to stockholders for Q4 2024 was $8.0 million, or $11.23 per share, compared to a net loss of $11.1 million, or $20.14 per share in Q4 2023[10] - Adjusted EBITDA loss for Q4 2024 was $6.1 million, compared to an adjusted EBITDA loss of $5.9 million in Q4 2023[10] - Net loss for the year ended December 31, 2024, was $46,971 million, compared to a net loss of $37,050 million in 2023, representing an increase in losses of approximately 27%[26] - The company reported a basic net loss per share of $71.21 for the year ended December 31, 2024, compared to $68.47 in 2023[24] - Net loss for Q4 2024 was $8,016,000 compared to a net loss of $11,150,000 in Q4 2023, representing a 28.5% improvement[29] - For the full year 2024, net loss was $46,971,000, compared to $37,050,000 in 2023, reflecting a 26.5% increase in losses[29] Expenses and Cost Management - Operating expenses for Q4 2024 decreased by $2.1 million, or 11%, to $17.6 million compared to Q4 2023[8] - Operating expenses for the year ended December 31, 2024, totaled $71,490 million, down from $80,476 million in 2023, a reduction of approximately 11%[26] - Finance expenses for Q4 2024 totaled $1,100,000, down from $2,227,000 in Q4 2023, marking a 50.7% reduction[29] - Stock-based compensation expense for the full year 2024 was $1,043,000, down from $1,569,000 in 2023, a decrease of 33.5%[29] - Other adjustments related to restructuring activities for the full year 2024 amounted to $1,020,000, compared to $2,362,000 in 2023, a reduction of 56.7%[31] - Depreciation and amortization for the full year 2024 was $3,889,000, down from $4,115,000 in 2023, reflecting a decrease of 5.5%[29] Debt and Financial Position - The company achieved a 47% reduction in outstanding debt in FY24, decreasing from $74.9 million to $39.7 million[5] - Long-term debt decreased significantly from $70,790 million in 2023 to $31,437 million in 2024, a reduction of approximately 56%[22] - Total current liabilities decreased slightly from $31,159 million in 2023 to $30,287 million in 2024, a decline of about 3%[22] - The company raised $10,064 million in net cash from financing activities in 2024, compared to $6,802 million in 2023, an increase of approximately 48%[26] Asset Management - Total assets decreased from $93,654 million in 2023 to $68,184 million in 2024, a decline of approximately 27%[22] - Cash and cash equivalents decreased from $5,396 million at the beginning of the year to $4,271 million at the end of the year, a decrease of about 21%[26] Other Financial Metrics - Adjusted EBITDA for Q4 2024 was $(6,098,000), slightly worse than $(5,926,000) in Q4 2023, indicating a decline of 2.9%[29] - Full year Adjusted EBITDA was $(21,232,000) in 2024, compared to $(20,263,000) in 2023, showing a 4.8% increase in losses[29] - Foreign exchange loss for Q4 2024 was $980,000, while in Q4 2023 it was a loss of $674,000, indicating a significant increase in foreign exchange impact[29] - Loss on debt extinguishment for the full year 2024 was $11,355,000, compared to $2,040,000 in 2023, indicating a significant increase in debt-related losses[29] Corporate Actions - The company announced a 1-for-11 reverse stock split effective March 3, 2025, and regained compliance with Nasdaq's minimum bid-price listing standard[5]

Core Viewpoint - Venus Concept Inc. reported financial results for Q4 and FY2024, highlighting ongoing industry challenges and a focus on cost management and strategic growth initiatives [3]. Financial Results Summary Fourth Quarter 2024 - Total revenue decreased by 13% year-over-year to $15.8 million, with U.S. revenue down 13% to $10.3 million and international revenue down 13% to $5.5 million [4][6]. - Revenue from Venus Prime/Subscription systems fell by 58.2%, while products-systems revenue increased by 15.4% [4][6]. - Gross profit decreased by 10% to $10.9 million, with a gross margin of 69.1% [7]. - Operating expenses declined by 11% to $17.6 million, driven by reductions in general and administrative, selling and marketing, and research and development expenses [8]. - The operating loss improved to $6.7 million from $7.6 million year-over-year [9]. - Net loss attributable to stockholders was $8.0 million, or $11.23 per share, compared to a net loss of $11.1 million, or $20.14 per share in the prior year [10]. Fiscal Year 2024 - Total revenue for FY2024 decreased by 15% to $64.8 million, with U.S. revenue down 12% to $38.2 million and international revenue down 19% to $26.7 million [12][14]. - The company achieved a significant reduction in outstanding debt from $74.9 million to $39.7 million, a 47% decrease year-over-year [5]. - Operating loss for FY2024 was $27.2 million, compared to $28.3 million in FY2023 [14]. - Net loss attributable to stockholders was $47.0 million, or $71.17 per share, compared to a net loss of $37.1 million, or $68.11 per share in the previous year [14]. Strategic Developments - The company is focused on reducing cash burn through disciplined cost management while making targeted investments for growth [3]. - Management structure changes were announced to enhance responsiveness and decisiveness in strategic planning [3]. - The company expanded its international distributor network, including partnerships in Taiwan, Colombia, and India [5]. Cash Flow and Financial Position - Cash used in operations in 2024 was $11.1 million, down 14% year-over-year [5]. - As of December 31, 2024, cash and cash equivalents were $4.3 million, down from $5.4 million a year earlier [11]. - The company amended its Bridge Loan Agreement with Madryn to create an additional $10.0 million financing capacity [5].

Financial Results Announcement - Venus Concept Inc. will release its fourth quarter and fiscal year 2024 financial results before the market opens on March 31, 2025 [1] - A conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the results, including a question and answer session [2] Participation Details - Participants can join the conference call by dialing 877-407-2991 (or 201-389-0925 for international callers) and using access code 13751985 [2] - A live webcast will be available on the investor relations section of the Company's website [2] Replay Information - A replay of the call will be accessible for two weeks at 877-660-6853 (or 201-612-7415 for international callers) with the same access code [3] - The webcast will also be archived on the Company's investor relations website [3] Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products [4] - The Company operates in over 60 countries and has 12 direct markets, with a diverse product portfolio including various aesthetic device platforms and hair restoration systems [4] - Key investors backing Venus Concept include EW Healthcare Partners, HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations [4]

Core Viewpoint - Venus Concept Inc. announced a 1-for-11 reverse stock split to increase the bid price of its common stock and regain compliance with Nasdaq Capital Market listing requirements [1][3]. Company Actions - The reverse stock split will be effective at 5:00 p.m. EST on March 3, 2025, with trading on a split-adjusted basis starting on March 4, 2025 [1]. - The stockholders approved the reverse stock split at a special meeting on February 14, 2025, with a ratio range from 1-for-5 to 1-for-16 [2]. Stock Adjustments - Every 11 shares of common stock will be reclassified into one new share, with adjustments made to the exercise price and number of shares for outstanding warrants and convertible securities [3]. - The reverse stock split will not affect the number of authorized shares or the par value of the common stock [4]. Fractional Shares - No fractional shares will be issued; stockholders entitled to fractional shares will receive an additional fraction to round up to the next whole share [5]. Exchange Agent - Computershare Inc. has been appointed as the exchange agent for the reverse stock split, and stockholders will not need to take further action for their positions to be adjusted [6]. Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a broad product portfolio in over 60 countries, including minimally invasive and non-invasive technologies [10].

Core Insights - Venus Concept Inc. announced significant changes to its senior leadership team as part of its ongoing transformation efforts aimed at establishing an optimal management structure for future growth and profitability [5][6]. Leadership Changes - Dr. Hemanth Varghese, President and COO, will leave the company effective March 28, 2025, to pursue other opportunities, while Bill McGrail, EVP of Technical Operations & Compliance, will retire effective February 28, 2025 [2]. - Kirk Gunhus has been appointed as Chief Revenue Officer, responsible for global sales efforts, including direct field force and distributor relationships [3]. - Ross Portaro has been appointed as EVP, Commercial Strategy and Head of Venus Hair, focusing on expanding the Venus Hair business [3]. - Melissa Kang returns as Chief Product Officer, tasked with guiding the company's product vision and innovation [4]. - Michael Mandarello will expand his role as Head of Strategy & Operations, overseeing corporate strategy and operational execution [4]. Strategic Goals - The new management structure aims to streamline decision-making processes and position the company for growth and profitability [6]. - The leadership changes reflect the company's commitment to building a capable team to support future product launches and overall business expansion [6]. Company Overview - Venus Concept is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products across over 60 countries [7]. - The product portfolio includes various aesthetic device platforms and hair restoration systems, supported by prominent healthcare industry investors [7].

Financial Data and Key Metrics - Q3 2024 total revenue was $15 million, down $2.6 million or 15% year-over-year, driven by a 23% decrease in US revenue and flat international revenue [28] - Gross profit decreased $2.3 million or 19% to $9.9 million, with gross margin at 66.1% compared to 69.2% in Q3 2023 [34][35] - Net loss attributable to stockholders was $9.3 million or $1.28 per share, compared to $9.1 million or $1.64 per share in Q3 2023 [39] - Cash used in operations decreased 25% year-over-year to $3.1 million, with a 40% reduction over the first nine months of 2024 [41] Business Line Performance - US system sales saw cash deals increase to 76% of total system sales in Q3, up from 69% last year and 67% in the first half of 2024 [12] - Lease revenue declined 23% year-over-year in the US and 39% overall, reflecting the strategic shift towards cash system sales [12] - International sales to distributors increased nearly 60% in Q3, driven by demand from new and existing partners in APAC and EMEA [9] Market Performance - US market faced macroeconomic headwinds, including customer financing pressures, high interest rates, and tighter credit markets [11] - International markets showed signs of recovery, with sales flat year-over-year and new product registrations in key markets like Australia and India [8][10] - Strength observed in Australia, Mexico, and Hong Kong, while Canada faced similar challenges to the US due to tight credit markets [48] Strategic Initiatives and Industry Competition - Company focused on enhancing cash flow profile, reducing cash used in operations by 25% year-over-year and 40% over the first nine months of 2024 [14][41] - Debt restructuring efforts reduced total debt obligations to $34.6 million, down 25% from June 2024 and 54% from December 2023 [15][40] - New body platform targeting Q1 2025 launch in the US, with regulatory submissions completed and additional features designed to enhance workflow [26] Management Commentary on Operating Environment and Future Outlook - Management acknowledged persistent macroeconomic headwinds affecting the aesthetic capital equipment market, particularly in the US [11][19] - Optimistic outlook for 2025, with expectations of continued demand from new distribution partners and upcoming product launches [10][22] - Company expects Q4 2024 revenue of at least $17 million and targets sustained cash flow breakeven by the back end of 2025 [42][57] Other Important Information - NASDAQ granted an additional 180-day extension until April 7, 2025, to regain compliance with the minimum bid price requirement [17] - New distribution partnerships in India, Taiwan, and Colombia expected to contribute to growth, with potential for increased orders in Q4 2024 [49][53] Q&A Session Summary Question: Prime Program Revenue Mix - Company expects cash system sales to remain in the 70% to 75% range, with in-house financing accounting for 25% to 30% of total system sales [45][46] Question: New Body Platform Details - New body platform is a next-generation energy-based system, not related to the delayed AI.ME program, with a targeted US launch in Q1 2025 [47] Question: International Market Strength - Key markets showing strength include Australia, Mexico, and Hong Kong, with new distribution partnerships in India expected to drive growth [48][49] Question: Revenue Contribution from New Markets - New distributors in markets like India may take a quarter or more to start regular ordering, with potential for increased contributions in Q4 2024 and 2025 [51][53] Question: Demand Environment by Product Category - Higher-priced products, such as the Robot in the hair business, face longer selling cycles due to tight credit markets [55][56] Question: Cash Flow Outlook - Company targets sustained cash flow breakeven by the back end of 2025, with Q4 2024 expected to be a strong quarter for cash flow [57] Question: Debt Reduction Plans - Company continues to work with lender Madryn to reduce debt, with no specific target yet but a focus on maintaining a manageable debt level [59][61]

Financial Performance - As of September 30, 2024, the company reported an accumulated deficit of $300.9 million, up from $261.9 million as of December 31, 2023[185]. - Revenues for the three months ended September 30, 2024, were $15.0 million, a decrease of 14.8% compared to $17.6 million for the same period in 2023[214]. - Net loss attributable to the Company for the three months ended September 30, 2024, was $9.3 million, compared to a net loss of $9.1 million for the same period in 2023[214]. - Total revenue decreased by $2.6 million, or 14.8%, to $15.0 million for the three months ended September 30, 2024, compared to $17.6 million for the same period in 2023[257]. - Gross profit decreased by $2.3 million, or 18.6%, to $9.9 million for the three months ended September 30, 2024, compared to $12.2 million in the same period in 2023[261]. - The net loss for the nine months ended September 30, 2024, was $39.0 million, compared to a net loss of $25.9 million for the same period in 2023[312][313]. - Total revenue decreased by $9.2 million, or 15.7%, to $49.1 million for the nine months ended September 30, 2024, compared to $58.2 million for the same period in 2023[271]. Cash Flow and Liquidity - The company had cash and cash equivalents of $4.5 million as of September 30, 2024, compared to $5.4 million as of December 31, 2023[185]. - Cash used in operations for the third quarter of 2024 was $4.8 million lower, or 40%, than the same period in 2023[226]. - Cash used in operating activities during the nine months ended September 30, 2024 was $7.3 million, representing a 39.9% reduction compared to the same period in 2023[285]. - Cash provided by financing activities for the nine months ended September 30, 2024, was $6,395,000, an increase from $5,531,000 in the same period of 2023[311]. - The company anticipates that existing capital resources will support operations for at least the next 12 months, but there are no assurances regarding future capital raising[304]. Debt and Financing - The company entered into a Loan and Security Agreement on April 23, 2024, providing $2.2 million in bridge financing, with additional delayed draws of up to $3.0 million[201][202]. - Total debt obligations decreased to approximately $34.6 million as of September 30, 2024, down from approximately $74.9 million as of December 31, 2023[285]. - The company issued $26.7 million in Secured Subordinated Convertible Notes with an interest rate of 8.0% per annum, convertible at an initial price of $48.75 per share[287]. - The company executed a $50.0 million Main Street Priority Lending Program Term Loan, which was modified on October 4, 2023[289]. - The company is restricted by covenants in its loan agreements, which may limit its ability to incur additional debt[306]. Revenue Sources and Trends - Approximately 28% of the company's aesthetic system revenues were derived from internal lease programs in the nine months ended September 30, 2024[208]. - For the three and nine months ended September 30, 2024, approximately 23% and 28% of total system revenues were derived from internal financing programs, a decline from 31% and 30% in the same periods of 2023[234]. - Approximately 61% and 59% of total system revenues for the three and nine months ended September 30, 2024, were derived from traditional sales, consistent with the previous year[235]. - Distributor sales increased to approximately 16% and 13% of total system revenues for the three and nine months ended September 30, 2024, compared to 8% and 9% in 2023, reflecting a focus on international growth[239]. Operating Expenses - Adjusted EBITDA loss for the three months ended September 30, 2024, was $5.9 million, compared to a loss of $4.6 million for the same period in 2023[214]. - Selling and marketing expenses are expected to increase but at a rate slightly below revenue growth as the business environment improves[245]. - Selling and marketing expenses decreased by $2.2 million or 9.6% in the nine months ended September 30, 2024, with a percentage of total revenues increasing from 40.1% to 43.0%[276]. - General and administrative expenses decreased by $3.3 million or 10.6% in the nine months ended September 30, 2024, with a percentage of total revenues increasing from 53.1% to 56.3%[277]. - Research and development expenses decreased by $1.3 million or 20.1% in the nine months ended September 30, 2024, with a percentage of total revenues decreasing from 11.2% to 10.6%[281]. Market and Economic Conditions - The global economy has experienced extreme volatility, impacting consumer confidence and economic growth, which poses uncertainty for the company's business[186]. - The company is adapting to macroeconomic challenges, including inflation and rising interest rates, which have impacted customer financing capabilities[226]. Product Development and Strategy - The company launched the Venus Prime program in January 2024, replacing its legacy subscription program, offering competitive financing rates and technology upgrades[209]. - The company is focused on expanding its ARTAS hair restoration business and robotics offerings through the AI.ME™ platform[184]. - The company plans to introduce and commercialize new products, which may increase expenses related to sales, marketing, and research and development[308]. - The company has developed and received regulatory clearance for twelve novel aesthetic technology platforms, including ARTAS and NeoGraft systems[211]. Other Financial Metrics - The allowance for expected credit losses as of September 30, 2024, was $4.1 million, representing 16.4% of gross outstanding accounts receivable, down from 27.3% in the same period of 2023[224]. - The company recognized a $10.9 million non-cash loss due to the extinguishment of $52.1 million in principal under the MSLP Loan Agreement in May 2024[252]. - The company recorded a non-cash operating expense of $20.8 million for the nine months ended September 30, 2024[312]. - The company does not grant rights of return or early termination rights to customers under traditional sales or internal lease programs[238].

Revenue Performance - Total revenue for Q3 2024 was $15.0 million, a decrease of 15% year-over-year, and below the estimate of at least $17.0 million[2]. - Revenue from the United States decreased by 23% year-over-year, while international revenue remained relatively stable[5]. - Revenue for Q3 2024 was $15,007,000, down 14.8% from $17,616,000 in Q3 2023, while year-to-date revenue decreased from $58,222,000 in 2023 to $49,068,000 in 2024, a decline of 15.7%[17]. Profitability and Losses - Gross profit for Q3 2024 decreased by $2.3 million, or 19%, to $9.9 million, with a gross margin of 66.1% compared to 69.2% in Q3 2023[6]. - Adjusted EBITDA loss for Q3 2024 was $5.9 million, compared to an adjusted EBITDA loss of $4.6 million for Q3 2023[9]. - The net loss attributable to stockholders for Q3 2024 was $9.3 million, or $1.28 per share, compared to a net loss of $9.1 million, or $1.64 per share in Q3 2023[9]. - The net loss for Q3 2024 was $9,302,000, compared to a net loss of $8,956,000 in Q3 2023, indicating a 3.9% increase in losses year-over-year[17]. - Net loss for the nine months ended September 30, 2024, was $38,955,000, compared to a net loss of $25,900,000 for the same period in 2023, representing a 50.5% increase in losses[18]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(15,134,000), compared to $(14,337,000) for the same period in 2023, indicating a 5.6% increase in losses[21]. Operating Expenses - Operating expenses for Q3 2024 decreased by $1.9 million, or 10%, to $17.1 million, driven by reductions in general and administrative, selling and marketing, and research and development expenses[7]. - Operating expenses for Q3 2024 totaled $17,078,000, down from $18,947,000 in Q3 2023, reflecting a reduction of 9.9%[17]. Cash Flow and Liquidity - Cash used in operations for the first nine months of 2024 was $7.3 million, down 40% year-over-year[2]. - Cash and cash equivalents decreased from $5,396,000 as of December 31, 2023, to $4,489,000 as of September 30, 2024, a decline of 16.8%[16]. - Total cash and cash equivalents at the end of the period were $4,489,000, down from $4,926,000 at the end of September 30, 2023, showing a decrease of 8.9%[18]. - Cash used in operating activities for the nine months ended September 30, 2024, was $(7,259,000), an improvement from $(12,085,000) in the same period of 2023, reflecting a 40.5% reduction in cash outflow[18]. Debt and Financing - Total debt obligations decreased to approximately $34.6 million, down 25% from $46.0 million as of June 30, 2024, and down 54% from $74.9 million as of December 31, 2023[2]. - Long-term debt significantly decreased from $70,790,000 to $30,025,000, a reduction of approximately 57.6%[16]. - The company raised $3,928,000 from short-term bridge financing in 2024, with net proceeds after costs of $310,000[18]. - Finance expenses for the nine months ended September 30, 2024, were $5,785,000, compared to $4,666,000 in 2023, representing a 24% increase[21]. - The company reported a loss on debt extinguishment of $11,355,000 for the nine months ended September 30, 2024, with no comparable loss in the previous year[18]. Assets and Capital - Total assets decreased from $93,654,000 as of December 31, 2023, to $72,276,000 as of September 30, 2024, representing a decline of approximately 22.8%[16]. - Additional paid-in capital increased from $247,854,000 to $311,012,000, reflecting a growth of 25.5%[16]. - Accounts receivable decreased from $29,151,000 to $21,102,000, a reduction of 27.7%[16]. Regulatory and Compliance - The Venus Bliss MAX system received medical device licenses in Canada and clearance from the Therapeutic Goods Administration in Australia[2]. - The company is currently disputing a CRA assessment regarding the repayment of $418,000 related to the Canada Emergency Wage Subsidy Claim[22]. Other Expenses - Stock-based compensation expense for the nine months ended September 30, 2024, was $817,000, down from $1,214,000 in 2023, indicating a 32.6% decrease[21]. - The company incurred a provision for expected credit losses of $869,000 for the nine months ended September 30, 2024, compared to $1,263,000 in 2023, reflecting a 31.2% decrease[18].

Core Insights - Venus Concept Inc. is expanding its international distributor network, with new partnerships in Taiwan and Colombia, and product certifications in India [1][2][3][4] Group 1: International Expansion - The company has partnered with Index International Ltd. in Taiwan and Quirugil S.A. in Colombia to enhance its distribution capabilities [1][2] - Quirugil operates with over 109 employees and has five branches in Colombia, providing a strong local network for Venus products [2] - The partnership with Spectra Medical Systems in India has led to the certification of several products, including Venus ARTAS iX and Venus Legacy, allowing for immediate distribution in a significant market [3][4] Group 2: Strategic Vision - The CEO of Venus Concept emphasized that these developments reflect the company's ongoing efforts to evolve its commercial strategy outside the U.S. to drive future growth and profitability [4] - The new agreements are expected to leverage local expertise and networks to supply aesthetic technologies to practitioners in key markets [4] - The company aims to utilize Paragon's established distribution presence in additional Asia-Pacific countries in the future [4] Group 3: Product Portfolio - Venus Concept offers a broad range of minimally invasive and non-invasive medical aesthetic technologies, reaching over 60 countries [6] - The product portfolio includes various aesthetic device platforms and hair restoration systems, such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system [6] - The company is backed by prominent healthcare industry growth equity investors, indicating strong financial support for its expansion efforts [6]

Company Overview - Venus Concept Inc. is a global leader in medical aesthetic technology, offering a wide range of minimally invasive and non-invasive products for aesthetic and hair restoration [4] - The company operates in over 60 countries and has 12 direct markets, showcasing its extensive reach in the industry [4] - Venus Concept's product portfolio includes various aesthetic device platforms and hair restoration systems, such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system [4] Financial Results Announcement - The company will release its third quarter financial results for fiscal year 2024 before the market opens on November 13, 2024 [1] - A conference call will be held at 8:00 a.m. Eastern Time on the same day to discuss the quarterly results, including a question and answer session [2] - For those unable to attend the live call, a replay will be available for two weeks, and the webcast will be archived on the company's investor relations website [3]