Vivos Therapeutics Reports Q1 2024 Results: Strategic Growth and Improved Operational Efficiency Fuel 25% Surge in Share Price

Vivos Therapeutics, Inc. (NASDAQ: VVOS), a leader in developing treatments for sleep-related breathing disorders, including obstructive sleep apnea (OSA), has announced its financial outcomes for Q1 2024. Amid strategic expansions and cost reduction efforts, Vivos continues to enhance its product offerings and operational efficiencies. VVOS shares rose 25% at Tuesday’s close.

Key Q1 2024 Highlights:

  • Revenue Adjustments: Revenue decreased to $3.4 million from $3.8 million in Q1 2023, primarily from lower VIP program and CARE appliance enrollments, balanced by increased sales from Pediatric, Lifeline appliances, and home sleep testing services.
  • Gross Profit and Margin: Q1 2024 gross profit reached $1.9 million with a 57% margin, down from $2.3 million and 61% last year, reflecting revenue decline offset by reduced sales costs.
  • Operating Expense Reduction: Operating expenses dropped by 22% to $1.6 million, continuing a seven-quarter trend of year-over-year decreases, mainly due to effective cost-cutting measures, including personnel expenses.
  • Strategic and Regulatory Milestones: Achieved Medicare reimbursement for CARE oral devices in April 2024, expanding beneficiary access. Plans for a new revenue initiative aim to reduce dependency on VIP enrollments.

Kirk Huntsman, CEO of Vivos, highlighted the company’s proactive cost management and product expansion efforts, along with significant regulatory achievements. Despite a dip in revenue, these initiatives are poised to drive sustainable growth and profitability, especially as the OSA market conditions improve. Anticipating cash flow positivity by late 2024 or early 2025, Vivos remains optimistic about its future role in meeting the evolving needs of OSA patients.

About Vivos Therapeutics, Inc.

Vivos Therapeutics, Inc. (NASDAQ: VVOS) is a medical technology company focused on developing and commercializing innovative diagnostic and treatment methods for patients suffering from breathing and sleep issues arising from certain dentofacial abnormalities such as obstructive sleep apnea (OSA) and snoring in adults. The Vivos Method represents the first clinically effective nonsurgical, noninvasive, nonpharmaceutical and cost-effective solution for treating mild to severe OSA. It has proven effective in over 42,000 patients treated worldwide by more than 1,900 trained dentists.

The Vivos Method includes treatment regimens that employ the proprietary CARE appliance therapy and other modalities that alter the size, shape and position of the soft tissues that comprise a patient’s upper airway and/or palate. The three Vivos CARE devices open airway space and may significantly reduce symptoms and conditions associated with mild-to-severe OSA, such as lowering Apnea Hypopnea Index scores. Vivos also markets and distributes SleepImage diagnostic technology under its VivoScore program for home sleep testing in adults and children. The Vivos Integrated Practice (VIP) program offers dentists training and other value-added services in connection with using The Vivos Method.

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Vivos Therapeutics Reports Q1 2024 Results: Strategic Growth and Improved Operational Efficiency Fuel 25% Surge in Share Price

Ashlee Vogenthaler

Markets Editor