Venus cept (US:VERO)2020-11-16 15:55Financial Data and Key Metrics Changes - The company reported GAAP revenue of $20.7 million for Q3 2020, a decrease of 21% year-over-year, impacted by COVID-19 disruptions [8][41] - Sales increased by 22% on a quarter-over-quarter basis, indicating improving business trends [9] - Gross profit for Q3 2020 decreased by 28% year-over-year to $13.5 million, with a gross margin of 65.3% compared to 71.8% last year [49][50] - GAAP net loss for Q3 2020 was $7.3 million or $0.18 per share, compared to a net loss of $9 million or $1.77 per share in the prior year [59] Business Line Data and Key Metrics Changes - Sales of ARTAS and ARTAS iX systems increased by 46% year-over-year to $4.8 million, reflecting the success of the new commercial strategy [30][43] - Total products and services revenue increased by 16% year-over-year to $11.2 million, while lease revenue decreased by 43% year-over-year to $9.4 million [41] - The company saw a 33% increase in international sales quarter-over-quarter, driven by recovery in hair restoration procedures [19] Market Data and Key Metrics Changes - Approximately 90% of the global customer base was active with devices by September, compared to less than 10% in April [14] - In North America, procedures for ARTAS and ARTAS iX systems increased by 35% year-over-year, while international markets saw a 23% decline [16] - The EMEA region showed slower recovery in procedure trends, but there was an uptick in September compared to August [13] Company Strategy and Development Direction - The company is focused on enhancing competitive positioning and maximizing capital through a restructuring program aimed at reducing operating expenses by at least $20 million [31][32] - A targeted commercial strategy has been implemented to optimize the sales process and improve system adoption, particularly in the U.S. market [24][27] - The company is developing next-generation robotic technologies for medical aesthetic applications, aiming to improve safety and clinical predictability [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving business trends despite ongoing challenges from COVID-19, noting a recovery in procedure volumes [9][75] - The company plans to return to providing annual guidance for fiscal year 2021 during the fourth quarter call [66] - Management highlighted the importance of adapting to the evolving market and the commoditization of procedures, particularly in the injectables space [90] Other Important Information - The company has made significant progress in collections, achieving 104%, 97%, and 98% of expected collections in July, August, and September respectively [112] - The restructuring program has already realized over $7 million in cost savings during Q3 2020 [55] - The company plans to host a virtual R&D event on December 10 to discuss advancements in robotic technologies [37] Q&A Session Summary Question: Procedure volume recovery in the U.S. and EMEA - Management confirmed that procedure volume has returned to pre-COVID levels and is continuing to improve in October and November, with a positive trend in EMEA as well [75][76] Question: Details on the upcoming virtual event regarding robotics - The event will cover improvements in the implantation feature of the device and advancements in robotics beyond hair restoration [80][82] Question: Status of ARTAS and sustainability of recent performance - Management indicated that the new pricing model and improved cost of goods sold have contributed to the recent success of ARTAS, with a focus on sustainable growth [99][102] Question: Market acceptance of Venus Bliss - Management reported strong market acceptance and attractive payback periods for the Bliss system, appealing to both new and existing customers [109] Question: Update on international market performance - Management noted strong performance in European countries such as France, Germany, and Spain, while also discussing the strategy to close underperforming markets [126]