Vivos Therapeutics (NASDAQ:VVOS) reported solid financial numbers for the second quarter of 2024 with a 19% increase in revenue.
The company reported a revenue of $4.1 million compared to the $3.4 million reported in the same quarter of 2023, which the company said was primarily driven by increased sales of Vivos appliances and higher service revenue from Vivos Integrated Provider (VIP) enrollments.
Gross profit also improved, reaching $2.7 million, up from $2.1 million in Q2 2023, with gross margins increasing to 65%, compared to 62% in the previous year's quarter.
Additionally, Vivos successfully reduced its operating expenses by 31% year-over-year, which significantly contributed to a 57% reduction in operating loss, amounting to $2.6 million for the quarter.
In June, the company announced a strategic marketing and distribution alliance with a sleep testing and treatment center operator in Colorado, marking a pivotal shift in its marketing and distribution model. The model is designed to better align its interests with referring medical professionals, dentists and sleep treatment providers, according to its CEO Kirk Huntsman.
“We began to see patients from this operator in late July and the fourth quarter will be our first full quarter of operations from this new relationship,” Huntsman said in a statement.
“This is an important milestone for Vivos, and we believe it represents the first in a similar series of alliances that we intend to launch nationwide.”
Huntsman emphasized the company's commitment to leveraging its new business model.
“We expect this model will substantially expand the number of OSA patients who have access to our full scope of evidence-based products and methods, make our revenue less reliant on VIP enrollments, and build on the other revenue initiatives we’ve been implementing over the past several quarters.”
The company also secured a $7.5 million equity growth investment from New Seneca Partners, which will support the launch of new strategic alliances across the country.