Vivos Therapeutics (NASDAQ:VVOS) is on track to become cash flow positive by the end of 2024, its CEO revealed in its latest financial update.
“Based on our progress to date and our revenue growth efforts for 2024, we continue to anticipate becoming cash flow positive from operations by the end of this year,” CEO Kirk Huntsman told shareholders.
The company announced its financial and operational highlights for the fourth quarter and full year ending December 31, 2023, highlighted by strong gross profit margins, reduced operating expenses and a narrowed year-over-year net loss.
Gross profit was strong at $2.1 million for Q4 2023 and $8.3 million for the full year, reflecting a gross margin of 64% and 60% respectively.
Operating expenses also witnessed a significant reduction, declining by $2.2 million in Q4 2023 and $9.5 million for the full year, attributed to cost-cutting initiatives including personnel and related expenses.
This led to a year-over-year reduction in net loss by $1.8 million for Q4 2023 and $10.3 million for the full year, positioning the company for a potential cash flow-positive operation by the end of 2024.
The company reported revenue of $3.2 million for Q4 2023 and $13.8 million for the full year, indicating a slight decline compared to the previous year. This decrease was primarily attributed to lower appliance revenue and Vivos Integrated Provider (VIP) enrollments, partially offset by increased revenue from home sleep testing services and seminars conducted at the Vivos Institute in Denver.
Vivos is coming off a big quarter that saw it receive 510(k) clearance from the US Food and Drug Administration for its oral medical devices to treat severe obstructive sleep apnea (OSA) in adults in November.
Additionally, Vivos struck strategic agreements with Ormco and On Demand Orthodontist, which are expected to generate additional revenue opportunities. The company also secured an exclusive distribution agreement with NOUM DMCC, expanding its market presence in the Middle East-North Africa (MENA) region.
CEO Huntsman expressed optimism about the company's prospects, citing cost-cutting initiatives, strategic partnerships, and FDA clearance as key drivers of growth.
“We have made substantial progress and are now starting to see the benefits of our actions,” Huntsman said.
“In 2023, our operating expenses declined by 27% annually. That is no small feat and it speaks to the tremendous efforts of our entire team. Also, these are not one-time cost reductions. Our results represent ongoing cost efficiencies we have achieved throughout our entire organization.”
Huntsman told shareholders that the company is seeing interest from dentists and medical professionals related to its portfolio of products following the milestone FDA clearance for severe OSA.
“The FDA clearance to treat severe OSA has provided the credibility we have needed for medical doctors to recommend Vivos oral medical devices to their patients. Given all this, the key relationships we’ve established, our success in managing costs and reducing our cash burn, our increased liquidity and enhanced capital structure, we are extremely excited about our prospects for this year.”
The company will host a conference call today at 5pm ET to discuss its financial results and operational updates.