Apyx Medical Corp (APYX) Q2 2024 Earnings Call Highlights: Navigating Revenue Declines and ...

In This Article:

  • Total Revenue: Decreased 10% year-over-year to $12.1 million.

  • Advanced Energy Products Revenue: Decreased 17% year-over-year to $9.8 million.

  • OEM Products Revenue: Increased 29% year-over-year to $2.4 million.

  • Gross Profit: Decreased 19% to $7.5 million.

  • Gross Margin: 61.7%, down from 68.4% in the prior period.

  • Operating Expenses: Decreased 1% to $13 million.

  • Loss from Operations: Increased 349% to $5.5 million.

  • Net Loss Attributable to Stockholders: $6.6 million, or $0.19 per share.

  • Adjusted EBITDA Loss: Increased 166% to $4.3 million.

  • Cash and Cash Equivalents: $32.7 million as of June 30, 2024.

  • 2024 Revenue Guidance: $50.6 million to $52.1 million, representing a decrease of approximately 3% to flat.

  • 2024 Net Loss Guidance: $24.5 million to $23.5 million.

Release Date: August 08, 2024

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

Positive Points

  • OEM product sales increased by 29% year-over-year, exceeding expectations.

  • Handpiece sales grew by more than 20% year-over-year, driven by demand from both new and existing users.

  • The company is actively engaging with prospective customers to facilitate generator adoption through creative financing solutions.

  • Apyx Medical Corp (NASDAQ:APYX) has a strong portfolio of clinical evidence supporting the efficacy and safety of its Renuvion technology.

  • The company is expanding its direct-to-consumer initiatives, resulting in increased social media presence and engagement.

Negative Points

  • Total revenue decreased by 10% year-over-year to $12.1 million.

  • Sales of advanced energy products decreased by 17% year-over-year due to a challenging cosmetic surgery market.

  • Gross profit margin declined from 68.4% to 61.7%, primarily due to changes in sales mix.

  • Net loss attributable to stockholders increased significantly to $6.6 million, or $0.19 per share.

  • The challenging capital equipment environment is expected to persist, impacting generator sales throughout the year.

Q & A Highlights

Q: Can you discuss the strong growth in handpiece sales and the impact of GLP-1 on utilization? A: Charles Goodwin, CEO: We are pleased with the handpiece sales performance, which was consistent with our expectations and budget. Global growth exceeded 20%, driven by demand from our customer base and new users. Some of this demand is attributed to GLP-1 patients seeking treatments for loose skin. We anticipate double-digit growth in handpiece sales for the entire year.

Q: Are there opportunities to expand into new geographies this year? A: Charles Goodwin, CEO: We are working on entering significant markets like South Korea and China. We have submitted registrations in both countries and will update once we receive news.