Vivos Therapeutics(US:VVOS)2024-08-15 18:05Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $4.1 million, a 19% increase compared to $3.4 million in Q2 2023 and Q1 2024 [9][20] - Gross profit increased to $2.7 million in Q2 2024 from $2.1 million in Q2 2023, with a gross margin of 65% compared to 62% [13][20] - Net loss decreased by 65% to $1.9 million in Q2 2024 from $5.5 million in Q2 2023 [16][20] Business Line Data and Key Metrics Changes - Product revenue increased by approximately $400,000 due to higher sales and fewer discounts on Vivos appliances [9] - Service revenue rose by $200,000, driven by an increase in Vivos Integrated Provider (VIP) enrollment revenue [9] - Myofunctional Therapy revenues decreased by $100,000 [9] Market Data and Key Metrics Changes - The company enrolled 32 VIPs in Q2 2024, recognizing VIP enrollment revenue of $1.2 million, a 28% increase from Q2 2023 [10] - The number of oral appliance arches sold in Q2 2024 was 2,033, generating $2 million in revenue, a 28% increase from Q2 2023 [11] Company Strategy and Development Direction - The company is pivoting towards a strategic alliance model with medical professionals to enhance revenue per clinical case and gross profit [22][23] - A new strategic alliance with a multicenter sleep clinic in Colorado was launched, expected to broaden access to OSA patients [12][22] - The company aims to reduce reliance on VIP enrollments and increase patient access through collaborations with sleep testing centers [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a significant opportunity in the OSA market with many undiagnosed patients [27][28] - The company anticipates achieving positive cash flow from operations in the foreseeable future [20][29] - Management highlighted the importance of the new strategic model in positioning the company for long-term success [22][29] Other Important Information - The company secured a $7.5 million equity investment to bolster liquidity and support the new strategic alliance [19][28] - Cash and cash equivalents increased to approximately $6.9 million as of June 30, 2024, compared to $1.6 million at the end of 2023 [19][20] Q&A Session Summary Question: Importance of the strategic alliance with the sleep clinic - Management emphasized the significance of the strategic pivot towards medical distribution, moving away from a solely dental channel [30][32] Question: Future of VIP doctors or dentists - Management indicated that there is still a large market for VIP doctors, and they will continue to support and train them [37][40] Question: Details on cost-cutting efforts - Management detailed significant reductions in SG&A costs and operational cash flow, achieved through workforce reductions and cuts in non-essential expenditures [41][42] Question: Revenue increase due to lower discounts - Management explained that the reduction in discounts was a conscious decision to uphold the value proposition of their products [44][45] Question: Steady state for operating expenses - Management noted that operating expenses are still in transition as the company pivots to a new model, making it difficult to define a steady state [48][49]