Release Date: March 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.