• Total Revenue: $15 million in 2024, up from $13.8 million in 2023, a 9% increase.
• Product Revenue: $7.9 million from oral appliance sales, a 26% increase from 2023.
• Gross Margin: Remained constant at 60% for both 2024 and 2023.
• Operating Loss: Reduced by 35% to $11.2 million in 2024 from $17.3 million in 2023.
• Sales and Marketing Expenses: Decreased to $1.7 million in 2024 from $2.5 million in 2023.
• General and Administrative Expenses: Decreased by 20% to $17.9 million in 2024 from $22.5 million in 2023.
• Cash and Cash Equivalents: $6.3 million as of December 31, 2024, up from $1.6 million in 2023.
• Net Cash Provided by Financing Activities: $17.9 million in 2024, primarily from equity offerings.
• Cash Used in Operations: $12.7 million in 2024, compared to $11.9 million in 2023.

• Warning! GuruFocus has detected 4 Warning Signs with VVOS.

Release Date: March 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vivos Therapeutics Inc (NASDAQ:VVOS) increased product revenue by 26% in 2024 while reducing operating expenses by 21%, leading to a 35% reduction in operating loss.
• The company successfully launched its expansion into the Middle East, gaining regulatory approvals in several key markets, with demand exceeding forecasts.
• Vivos Therapeutics Inc (NASDAQ:VVOS) raised approximately $17.9 million through equity transactions, including a significant $7.5 million investment from New Seneca Partners.
• The new marketing and distribution strategy focuses on profit-sharing alliances and acquisitions of sleep testing clinics, potentially increasing revenue and profit per case.
• The company reported a 70% conversion rate of OSA patients into Vivos treatment options, with a realized top-line revenue of over $4,500 per case and contribution margins of up to 50%.

Negative Points

• Despite revenue growth, Vivos Therapeutics Inc (NASDAQ:VVOS) is still using cash to fund operations and will require additional financing in the near term.
• The decrease in VIP enrollments led to a $400,000 reduction in service revenue, reflecting a shift in the company's marketing and sales strategy.
• The company faces challenges in scaling its new business model, including the need to train and integrate dentists into the new system.
• Vivos Therapeutics Inc (NASDAQ:VVOS) recorded a net cash used in operations of $12.7 million in 2024, an increase from $11.9 million in the previous year.
• The company is still in the early stages of its strategic pivot, with revenue from new alliances like Rebis expected to show significant impact only in 2025.

Q & A Highlights

Q: What is the incentive for Rebis Healthcare in the new marketing model collaboration with Vivos? A: R. Kirk Huntsman, CEO, explained that Rebis Healthcare sees an improvement in the quality of care they can offer to their patients and an opportunity to differentiate their services. They are motivated by the potential for a new profit stream and the ability to offer patients alternatives to CPAP, which many patients have stopped using. This collaboration allows Rebis to provide a more comprehensive range of treatments, enhancing patient care and profitability.

Q: How does the transition of the medical integration division into an M&A team impact Vivos' strategy? A: Huntsman noted that the medical integration division's learnings informed the pivot to the new model. The team is now focused on engaging directly with medical communities and sleep testing centers, bringing dentists to the table. This approach positions Vivos at a critical point in the patient journey, allowing them to offer alternatives to CPAP and potentially increase patient satisfaction and treatment uptake.

Q: How should we think about Vivos' financial outlook for 2025 compared to 2024? A: Huntsman indicated that revenue from the Rebis affiliation will begin to show in 2025, with acceleration expected in the second and third quarters. The new business model is anticipated to materially improve top-line revenue and net profits compared to 2024, with guidance provided as specific transactions occur.

Q: How does the $4,500 revenue per patient work through the income statement? A: Bradford Amman, CFO, clarified that this revenue will continue to be recorded under appliances. The cost of goods sold (COGS) will include the cost of the appliance and any profit-sharing amounts paid to affiliates. The shift in revenue composition is expected to continue, with product revenue growing and service revenue decreasing.

Q: What are the gating factors for converting potential customers at sleep centers into Vivos customers? A: Huntsman highlighted that the conversion rate is a key metric, with 70-80% of patients choosing Vivos treatment when presented with options. The main gating factor is having trained dentists available, but Vivos has a pool of over 2,000 trained providers. The company is confident in meeting demand without significant choke points.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.