Apyx Medical(US:APYX)2025-03-13 15:48Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $14.2 million, a slight decrease of 3% compared to $14.7 million in Q4 2023 [7][23] - Gross profit for Q4 2024 increased to $9 million, with a gross profit margin of 63.0%, up from 60.9% in the prior year [25] - Net loss attributable to stockholders was $4.6 million or $0.12 per share for Q4 2024, compared to $9.6 million or $0.28 per share in Q4 2023 [28] Business Segment Data and Key Metrics Changes - Advanced Energy segment revenue was flat at approximately $12.1 million, with a 30% growth compared to Q3 2024 [8][24] - OEM segment sales decreased by 16% to approximately $1.6 million in Q4 2024 compared to Q4 2023 [24] - Domestic revenue increased by 1% year-over-year to $10.6 million, while international revenue decreased by 8% to $3.7 million [25] Market Data and Key Metrics Changes - The aesthetic market has faced softness due to macroeconomic factors and the adoption of GLP-1 drugs, which have diverted discretionary spending [9][10] - The company anticipates a surge in demand for surgical solutions as patients who have lost weight from GLP-1 drugs seek treatments for loose skin [11][12] Company Strategy and Development Direction - The company is focusing on the launch of the AYON Body Contouring System, expected in the second half of 2025, which integrates multiple surgical technologies [16][18] - Apyx Medical aims to position itself as a leader in surgical aesthetics, leveraging its proprietary technology and direct-to-consumer marketing strategies [12][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the aesthetic space is undergoing significant changes due to the impact of GLP-1 drugs, which have disrupted traditional non-invasive procedures [61][62] - The company believes that its Renuvion system is uniquely positioned to meet the needs of patients post-weight loss, and it expects to see growth in surgical procedures as a result [11][12] Other Important Information - A restructuring program was implemented, reducing the U.S. workforce by nearly 25%, expected to yield annualized cost savings of approximately $4.3 million [20][21] - The company completed a registered direct offering with net proceeds of approximately $6.8 million to strengthen its balance sheet [21] Q&A Session Summary Question: Confirmation of gross margin for 2025 - Management confirmed that they expect gross margins to be around 60% for 2025, similar to 2024 [35][37] Question: Timing and revenue expectations for AYON - Management indicated that the guidance for AYON has not been updated despite the earlier submission for FDA approval, and revenue expectations remain conservative [40][42] Question: Success of direct-to-consumer campaign - Management highlighted that the direct-to-consumer campaign has significantly exceeded expectations, driven by the unique needs of patients experiencing skin laxity post-weight loss [52][53] Question: Domestic vs. international market performance - Management noted that the U.S. market is performing better due to early adoption of GLP-1 drugs, and they expect similar trends to emerge internationally [56][58] Question: Adoption of GLP-1s and utilization of Renuvion - Management reported growth in handpiece sales in the U.S. and noted that surgical practices are adapting to meet the needs of patients with skin laxity [67][70] Question: Upgrades for the Apyx One Console - Management stated that there is still a significant number of customers who need to upgrade to the Apyx One Console, and they plan to offer special pricing for existing customers [75]