TORONTO, March 31, 2025 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept” or the "Company”) (NASDAQ: VERO), a global medical aesthetic technology leader, announced financial results for the three and twelve months ended December 31, 2024.
Summary of Financial Results & Recent Progress:
- Company continues to execute against Transformation Plan
- Cash used in operations in 2024 of $11.1 million, down 14% year-over-year
- The Company achieved a substantial reduction in outstanding debt in FY24, from $74.9 million to $39.7 million, down 47% year-over-year
- Total revenue for the fourth quarter of $15.8 million, down 13% year-over-year, and up 5% quarter-over-quarter.
- Fourth quarter operating expenses declined 11% year-over-year
- Fourth quarter GAAP net loss improved 28% year-over-year
- Fourth quarter Adjusted EBITDA loss of $6.1 million, compared to $5.9 million last year
- On November 7, 2024, the Company announced the continued expansion of its international distributor network with several developments globally including Index International Ltd., a subsidiary of Paragon Meditech, in Taiwan, Quirugil S.A, in Colombia and certification of select products in India with the Company's exclusive distribution partner, Spectra Medical Systems.
- On February 27, 2025, the Company announced a 1-for-11 reverse stock split of the Company's issued and outstanding common stock, which began trading on The Nasdaq Capital Market ("Nasdaq”) on a split-adjusted basis at the open of trading on March 4, 2025. On March 18, 2025, the Company received notification from Nasdaq that it has regained compliance with its minimum bid-price listing standard.
- On March 27, 2025, the Company, Madryn Health Partners, LP and Madryn Health Partners (Cayman Master), LP, (collectively "Madryn”) amended the existing Bridge Loan Agreement to create an additional $10.0 million of financing capacity available to the Company.
"Difficulties in the industry persisted in the fourth quarter and impacted our results relative to the expectations we outlined during our third quarter report,” said Rajiv De Silva, Chief Executive Officer of Venus Concept. "Our focus remains on reducing our cash burn through disciplined cost management, while making targeted investments to regain growth of the business. In February, we announced important management structure changes, which by design, will enable us to be responsive and decisive in our strategic plan and continue our goal to position the Company for long-term success. Lastly, we appreciate the continued partnership with Madryn as evidenced by the latest bridge loan amendment.”
Fourth Quarter 2024 Financial Results:
| Three Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (dollars in thousands) | ||||||||
| Revenues by region: | ||||||||
| United States | $ | 10,274 | $ | 11,789 | ||||
| International | 5,491 | 6,343 | ||||||
| Total revenue | $ | 15,765 | $ | 18,132 | ||||
| Three Months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | Change | ||||||||||||||||||||||
| (in thousands, except percentages) | $ | % of Total | $ | % of Total | $ | % | ||||||||||||||||||
| Revenues by product: | ||||||||||||||||||||||||
| Venus Prime / Subscription-Systems | $ | 2,533 | 16.1 | $ | 6,064 | 33.4 | $ | (3,531 | ) | (58.2 | ) | |||||||||||||
| Products-Systems | 10,000 | 63.4 | 8,662 | 47.8 | 1,338 | 15.4 | ||||||||||||||||||
| Products-Other | 2,524 | 16.0 | 2,544 | 14.0 | (20 | ) | (0.8 | ) | ||||||||||||||||
| Services | 708 | 4.5 | 862 | 4.8 | (154 | ) | (17.9 | ) | ||||||||||||||||
| Total | $ | 15,765 | 100.0 | $ | 18,132 | 100.0 | $ | (2,367 | ) | (13.1 | ) | |||||||||||||
Total revenue for the fourth quarter of 2024 decreased $2.4 million, or 13%, to $15.8 million, compared to the fourth quarter of 2023. The decrease in total revenue, by region, was driven by a $1.5 million, or 13%, decrease year-over-year in United States revenue and a $0.9 million, or 13%, decrease year-over-year in International revenue. The decrease in total revenue, by product category, was driven primarily by a 58% decrease in lease revenue, partially offset by a 15% increase in products - systems revenue. The percentage of total systems revenue derived from the Company's internal lease programs (Venus Prime and our legacy subscription model) was approximately 20% in the fourth quarter of 2024, compared to 41% in the prior year period.
Gross profit for the fourth quarter of 2024 decreased $1.2 million, or 10%, to $10.9 million compared to the fourth quarter of 2023. The decrease in gross profit is primarily due to the effects of tighter third-party lending practices which negatively impacted capital equipment sales in both the U.S. and international markets. Gross margin was 69.1% of revenue, compared to 66.5% of revenue for the fourth quarter of 2023.
Operating expenses for the fourth quarter of 2024 decreased $2.1 million, or 11%, to $17.6 million, compared to the fourth quarter of 2023. The change in total operating expenses was driven by a decrease of $1.3 million, or 13%, in general and administrative expenses, a decrease of $0.7 million, or 8%, in selling and marketing expenses, and a decrease of $0.2 million, or 12%, in research and development expenses. The reduction in fourth quarter of 2024 general and administrative expenses reflects our continued progress in cost containment and streamlining of our operations.
Operating loss for the fourth quarter of 2024 was $6.7 million, compared to operating loss of $7.6 million for the fourth quarter of 2023.
Net loss attributable to stockholders for the fourth quarter of 2024 was $8.0 million, or $11.23 per share, compared to net loss of $11.1 million, or $20.14 per share for the fourth quarter of 2023. Weighted-average shares outstanding for the fourth quarter of 2024 and 2023 gives effect for the Company's 1 for 11 reverse stock split effective March 3, 2025. Adjusted EBITDA loss for the fourth quarter of 2024 was $6.1 million, compared to adjusted EBITDA loss of $5.9 million for the fourth quarter of 2023.
As of December 31, 2024, the Company had cash and cash equivalents of $4.3 million and total debt obligations of approximately $39.7 million, compared to $5.4 million and $74.9 million, respectively, as of December 31, 2023.
Fiscal Year 2024 Financial Results:
| Twelve Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (dollars in thousands) | ||||||||
| Revenues by region: | ||||||||
| United States | $ | 38,176 | $ | 43,454 | ||||
| International | 26,657 | 32,900 | ||||||
| Total revenue | $ | 64,833 | $ | 76,354 | ||||
| Twelve Months Ended December 31, | ||||||||||||||||||||||||
| 2024 | 2023 | Change | ||||||||||||||||||||||
| (in thousands, except percentages) | $ | % of Total | $ | % of Total | $ | % | ||||||||||||||||||
| Revenues by product: | ||||||||||||||||||||||||
| Venus Prime / Subscription-Systems | $ | 13,265 | 20.6 | $ | 20,504 | 26.9 | $ | (7,239 | ) | (35.3 | ) | |||||||||||||
| Products-Systems | 38,020 | 58.6 | 41,874 | 54.8 | (3,854 | ) | (9.2 | ) | ||||||||||||||||
| Products-Other | 10,469 | 16.1 | 10,563 | 13.8 | (94 | ) | (0.9 | ) | ||||||||||||||||
| Services | 3,709 | 4.7 | 3,413 | 4.5 | (334 | ) | (9.8 | ) | ||||||||||||||||
| Total | $ | 64,833 | 100.0 | $ | 76,354 | 100.0 | $ | (11,521 | ) | (15.1 | ) | |||||||||||||
Total revenue for fiscal year 2024 decreased $11.5 million, or 15%, to $64.8 million, compared to fiscal year 2023. The decrease in total revenue, by region, was driven by a $6.2 million, or 19%, decrease year-over-year in International revenue and a $5.3 million, or 12%, decrease year-over-year in United States revenue. The decrease in total revenue, by product category, was driven primarily by a 35% decrease in lease revenue and by a 9% decrease in products - systems revenue. The percentage of total systems revenue derived from the Company's internal lease programs (Venus Prime and our legacy subscription model) was approximately 26% in fiscal year 2024, compared to 33% in the prior year period.
Operating loss for fiscal year 2024 was $27.2 million, compared to operating loss of $28.3 million for fiscal year 2023. Net loss attributable to stockholders for fiscal year 2024 was $47.0 million, or $71.17 per share, compared to net loss of $37.1 million, or $68.11 per share for fiscal year 2023. Weighted-average shares outstanding for fiscal year 2024 and 2023 gives effect for the Company's 1-for-11 reverse stock split effective March 3, 2025. Adjusted EBITDA loss for fiscal year 2024 was $21.2 million, compared to adjusted EBITDA loss of $20.3 million for fiscal year 2023.
Fiscal Year 2025 Financial Outlook:
Given the Company's active dialogue with existing lenders and investors and the ongoing evaluation of strategic alternatives with various interested parties to maximize shareholder value, the Company is not providing full year 2025 financial guidance at this time. The Company expects total revenue for the three months ending March 31, 2025, of at least $14.0 million.
Conference Call Details:
Management will host a conference call at 8:00 a.m. Eastern Time on March 31, 2025 to discuss the results of the quarter and the year with a question and answer session. Those who would like to participate may dial 877-407-2991 (201-389-0925 for international callers) and provide access code 13751985. A live webcast of the call will also be provided on the investor relations section of the Company's website at ir.venusconcept.com.
For those unable to participate, a replay of the call will be available for two weeks at: 877-660-6853 (201-612-7415 for international callers); access code 13751985. The webcast will be archived at ir.venusconcept.com.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reach in over 60 countries and 10 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Versa Pro, Venus Legacy, Venus Velocity, Venus Viva, Venus Glow, Venus Bliss, Venus Bliss MAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors, including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management and Aperture Venture Partners.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as "anticipates,” "believes,” "plans,” "expects,” "projects,” "future,” "intends,” "may,” "should,” "could,” "estimates,” "predicts,” "potential,” "continue,” "guidance,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements include, but are not limited to, but are not limited to, statements about our financial performance and metrics; the growth in demand for our systems and other products; the efficacy of the restructuring plan; the identification and efficacy of strategic alternatives to maximize shareholder value; the reduction in our cash burn; and the continued implementation of turnaround plans, including debt restructurings and financings. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A-"Risk Factors” in our Quarterly Reports on Form 10-Q and Part I Item 1A-"Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
Investor Relations Contact:
ICR Healthcare on behalf of Venus Concept:
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
| Venus Concept Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands of U.S. dollars, except share and per share data) | ||||||||
| December 31, | ||||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 4,271 | $ | 5,396 | ||||
| Accounts receivable, net of allowance of $3,402 and $7,338 as of December 31, 2024, and 2023 | 18,721 | 29,151 | ||||||
| Inventories | 17,561 | 23,072 | ||||||
| Prepaid expenses | 828 | 1,298 | ||||||
| Advances to suppliers | 6,027 | 5,604 | ||||||
| Other current assets | 1,104 | 1,925 | ||||||
| Total current assets | 48,512 | 66,446 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term receivables, net of allowance of $384 and $77 as of December 31, 2024, and 2023 | 8,534 | 11,318 | ||||||
| Deferred tax assets | 1,459 | 1,032 | ||||||
| Severance pay funds | 488 | 573 | ||||||
| Property and equipment, net | 936 | 1,322 | ||||||
| Operating right-of-use assets, net | 3,282 | 4,517 | ||||||
| Intangible assets | 4,973 | 8,446 | ||||||
| Total long-term assets | 19,672 | 27,208 | ||||||
| TOTAL ASSETS | $ | 68,184 | $ | 93,654 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 6,484 | $ | 9,038 | ||||
| Accrued expenses and other current liabilities | 11,433 | 12,437 | ||||||
| Note Payable | 8,271 | - | ||||||
| Current portion of long-term debt | - | 4,155 | ||||||
| Income taxes payable | - | 366 | ||||||
| Unearned interest income | 907 | 1,468 | ||||||
| Warranty accrual | 917 | 1,029 | ||||||
| Deferred revenues | 953 | 1,076 | ||||||
| Operating lease liabilities | 1,322 |
| ||||||