Vivos Therapeutics (NASDAQ:VVOS), a medical technology targeting sleep issues such as obstructive sleep apnea (OSA) and snoring, had a strong third quarter marked by higher revenue and reduced operating expenses.
Revenue increased 17% year-over-year to $3.9 million compared to $3.3 million in the same period last year. This growth was mainly due to increased product sales and lower discounts on Vivos appliances, as well as higher service revenue from deferred enrollment, sponsorships, and seminars.
The company's gross profit for the quarter rose to $2.3 million, up from $1.7 million in Q3 2023, resulting in a gross margin of 60%, an improvement from last year's 53%, primarily due to revenue growth and improved cost efficiencies.
Meanwhile, the company saw its operating expenses decrease by 8%, or $0.4 million, year-over-year, attributed to a continued focus on cost reductions. Vivos expects these strategies to drive positive cash flow from operations by mid-2025.
By September 30, 2024, Vivos’ patented oral appliances had been used to treat over 47,000 patients globally, up from over 40,000 the previous year.
Additionally, Vivos has trained more than 2,000 dentists in The Vivos Method and related value-added services, an increase from around 1,850 as of September 30, 2023.
The company’s CEO Kirk Huntsman noted that the Q3 results mark the ninth consecutive quarter of year-over-year decreases in operating expenses as it continues to focus on costs while growing revenue.
“During the quarter and more recently, we also achieved important milestones to strengthen the foundation for future growth, notably a key FDA clearance for use of our devices in children and the issuance of new insurance codes covering our devices,” he said.
The CEO also highlighted that the company’s new marketing and distribution model announced in June which leverages contractual alliances with medical sleep specialists continues to show promise.
“As we previously anticipated, revenues from this new model were not material in the third quarter, although we have seen enough to date to warrant expanding the program to two additional locations in Colorado, which we expect to have operational by the end of 2024 or very early in 2025,” he said.
“We are also in discussions to expand the model through similar alliances with other medical sleep providers, and we expect to continue to refine the model as it rolls out based on our experiences.”
Huntsman concluded: “As we continue to move more directly and vertically into affiliations and collaborations with medical specialists, functional medicine doctors, and other sleep-related healthcare practitioners, we expect this to positively impact our new case starts, revenue growth and gross profit in 2025.”