Vivos Therapeutics(US:VVOS)2025-11-19 23:02Financial Data and Key Metrics Changes - For Q3 2025, revenue increased by 76% to $6.8 million compared to $3.9 million in Q3 2024, and 78% sequentially from Q2 2025 [8] - For the nine months ended September 30, 2025, revenue increased by approximately $2.3 million, or 20%, to $13.6 million compared to $11.3 million for the same period in 2024 [9] - Gross profit for Q3 2025 increased to approximately $3.9 million, with a gross margin of 58%, slightly down from 60% in Q3 2024 [11] - Net loss increased to $5.4 million in Q3 2025 and $14.3 million for the first three quarters of 2025 [12] Business Line Data and Key Metrics Changes - The increase in revenue was driven by a $2.2 million increase in OSA sleep testing services primarily from the Sleep Center of Nevada (SCN) and $1.3 million from new treatment centers [8] - VIP enrollment revenue from the legacy business model decreased by $800,000, indicating a shift towards the new model [9] Market Data and Key Metrics Changes - The company is currently servicing significantly less than 40% of the potential new patients being tested each month at SCN, indicating substantial growth potential [23] - Over 210,000 OSA patients have been tested by SCN providers since 2019, with many potential patients dissatisfied with CPAP units [23] Company Strategy and Development Direction - The strategic pivot towards acquiring sleep medical practices and forming alliances is aimed at increasing market penetration and financial returns [18] - The establishment of Sleep and Airway Medicine Centers (SAMC) in Nevada is part of the strategy to provide comprehensive treatment options for OSA patients [20] - Future initiatives include expanding diagnostic and treatment services, establishing a pediatric OSA program, and collaborating with specialty medical groups [29] Management's Comments on Operating Environment and Future Outlook - Management views Q3 2025 as a watershed quarter, indicating the company's ability to monetize its technology for treating sleep-related disorders [15] - The company expects revenue growth to continue as new dental providers and nurse practitioners are onboarded, which will optimize revenue generation [39] - Management anticipates that the SAMC operations will achieve contribution margins of 50%-60% at steady-state [43] Other Important Information - The company has secured $14.2 million in net cash from financing activities, which will support its growth initiatives [13] - The acquisition of SCN has allowed the company to recognize new revenue streams from OSA diagnostic and treatment services [57] Q&A Session Summary Question: How should sales be modeled for the next few quarters? - Management expects top-line revenues to continue to grow as new providers are deployed, with a ramp-up period of three to six months for optimal revenue levels [39][40] Question: What are the reasonable operating expenses for the next quarters? - SAMC operations are expected to achieve contribution margins of 50%-60% at steady-state, with current expenses being higher due to upfront investments [43] Question: Update on cash flow break-even goals? - The goal is to achieve cash flow break-even, with expectations that profits from SAMC operations will contribute to this goal in the near future [46] Question: How should investors view the company now and in six months? - Management believes the current model is replicable and scalable, with significant growth potential ahead, making it an exciting time for investors [52][56] Question: How does revenue recognition differ between models? - Revenue recognition varies based on the model, with acquisitions allowing for immediate recognition upon product shipment, while contractual alliances may involve profit-sharing arrangements [57]