VSee Health, Inc.(VSEE) - 2024 Q2 - Quarterly Results

Company Update Business Highlights VSee Health completed its de-SPAC transaction, became publicly traded, enhanced acute care, formed key partnerships, and secured major contracts - Successfully completed de-SPAC transaction, becoming publicly traded and enhancing acute care and tele-intensivist services[2][3] - Partnered with Ava Robotics for a VSee Health-powered robot to extend remote personalized care to hospital ICUs[2] - Launched Aimee, an innovative virtual healthcare, labs, and prescription drug service providing low-cost access to quality healthcare[2] - Contracted with Seven Corners Correctional Health to offer accessible, quality specialty care to inmates in 24 federal prisons[2][3] - Expanded telehealth and billing services to major healthcare clients through a partnership with SkywardRx[2] - Secured a virtual care purchasing agreement with Premier, Inc., expanding market reach and penetration[2] Management Commentary Management emphasized commitment to innovative virtual care B2B solutions, highlighting public listing and merger completion as catalysts for growth - Public listing and merger completion (VSee Lab and iDoc) are significant milestones for accelerating growth, investing in technology, and scaling customer acquisition[3] - VSee Health aims to be recognized as a trusted brand by developing robust telemedicine solutions that easily integrate into existing healthcare systems[3] - Strategic partnerships, such as with Stand Together for Aimee, are helping develop local community centers into healthcare hubs providing high-quality physician access at affordable levels[3] Financial Results - GAAP Second Quarter Financial Results VSee Health reported a 33% increase in Q2 2024 revenue to $1.7 million, with net loss decreasing by 16% to $0.3 million due to a tax benefit Second Quarter 2024 Key Financials (GAAP) | Metric | Q2 2024 | Q2 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Revenue | $1.7 million | $1.3 million | 33% | | Net Loss | $(0.3) million | $(0.4) million | (16%) | | Net Loss per Share | $(0.06) | $(0.09) | (33%) | Revenue Analysis (Q2) Q2 2024 total revenue increased by 33% to $1.7 million, driven by significant growth in professional and technical engineering fees Q2 2024 Revenue Breakdown | Revenue Category | Q2 2024 | Q2 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $1,711,566 | $1,290,223 | 33% | | Professional services and other fees | $421,632 | $218,942 | 93% | | Technical engineering fees | $189,939 | $48,650 | 290% | | Subscription fees | $1,037,426 | $1,022,631 | 1.4% | | Patient fees | $31,520 | $0 | N/A | | Telehealth fees | $30,569 | $0 | N/A | | Institutional fees | $480 | $0 | N/A | Operating Expenses (Q2) Operating expenses increased 69% year-over-year in Q2, primarily due to higher transaction costs associated with the business combination - Operating expenses increased 69% YoY, driven by higher transaction expenses (legal, professional, advisory, consulting fees) related to the business combination[6] - General and administrative expenses increased due to higher reseller fees, partially offset by lower software costs from reduced headcounts[6] - Compensation and related benefits decreased primarily from lower utilization of independent contractors and employee headcount reduction[6] Net Loss and EPS (Q2) Net loss decreased by 16% to $(0.36) million in Q2 2024, with basic and diluted loss per share improving to $(0.06) Q2 2024 Net Loss and EPS | Metric | Q2 2024 | Q2 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Net Loss | $(361,961) | $(428,581) | (16%) | | Basic and Diluted Loss per Share | $(0.06) | $(0.09) | (33%) | - Decrease in net loss primarily driven by a tax benefit related to valuation allowance changes from the business combination and higher revenue[7] Six Month Financial Results For the first half of 2024, revenue increased 11% to $3.2 million, and net loss significantly decreased by 62% to $0.3 million First Half 2024 Key Financials (GAAP) | Metric | H1 2024 | H1 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Revenue | $3.2 million | $2.9 million | 11% | | Net Loss | $(0.3) million | $(0.9) million | (62%) | | Net Loss per Share | $(0.07) | $(0.19) | (63%) | - Cash and cash equivalents stood at $1.1 million as of June 30, 2024[10] Revenue Analysis (H1) H1 2024 total revenue increased by 11% to $3.2 million, driven by professional and technical engineering fees, despite a decline in subscription revenue H1 2024 Revenue Breakdown | Revenue Category | H1 2024 | H1 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $3,207,561 | $2,886,491 | 11% | | Professional services and other fees | $749,475 | $478,332 | 57% | | Technical engineering fees | $352,889 | $224,337 | 57% | | Subscription fees | $2,042,628 | $2,183,822 | (6%) | | Patient fees | $31,520 | $0 | N/A | | Telehealth fees | $30,569 | $0 | N/A | | Institutional fees | $480 | $0 | N/A | - Subscription revenue declined 6% due to churned enterprise customers in 2024, as some clients gradually shifted back to face-to-face consultations[8] Operating Expenses (H1) Operating expenses for H1 increased 13% year-over-year, primarily due to business combination transaction expenses and iDoc acquisition costs - Operating expenses increased 13% YoY, driven by higher transaction expenses related to the business combination and increased general and administrative expenses from the iDoc acquisition and higher reseller fees[9] - These increases were partially offset by lower software and business service costs from lower headcounts[9] Net Loss and EPS (H1) Net loss for H1 2024 significantly decreased by 62% to $(0.33) million, with basic and diluted loss per share improving to $(0.07) H1 2024 Net Loss and EPS | Metric | H1 2024 | H1 2023 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Net Loss | $(332,792) | $(884,600) | (62%) | | Basic and Diluted Loss per Share | $(0.07) | $(0.19) | (63%) | - Decrease in net loss primarily driven by an income tax benefit related to valuation allowance changes from the business combination and higher revenue[10] Financial Results - Pro Forma Pro Forma Financial Results Unaudited pro forma results show slight revenue decreases for Q2 and H1 2024, with Q2 net loss increasing and H1 net loss remaining stable Pro Forma Financial Information | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :-------------------------------- | :---------- | :---------- | :---------- | :---------- | | Total Revenue | $2,701,485 | $2,769,241 | $5,837,245 | $6,314,200 | | Net Loss | $(1,791,264) | $(1,030,910) | $(2,002,771) | $(2,106,741) | | Net Loss per Share (Basic & Diluted) | $(0.12) | $(0.07) | $(0.14) | $(0.14) | Financial Statements Condensed Consolidated Balance Sheets Total assets significantly increased to $79.0 million as of June 30, 2