• Total Revenue: $11.5 million, a decrease of 4% compared to $12 million in the same period last year.

• Advanced Energy Products Revenue: Decreased 6% year over year to $9.3 million.

• Disposable Handpiece Revenue: Grew 9% overall and 15% in the United States.

• OEM Segment Sales: Increased 3% to approximately $0.1 million.

• Gross Profit: Decreased 13% to $7 million.

• Gross Margin: 60.5%, down from 66.6% in the prior year period.

• Operating Expenses: Decreased 16% to $10.6 million.

• Net Loss Attributable to Shareholders: $4.7 million or 14 per share.

• Adjusted EBITDA Loss: Decreased 20% to $2.4 million.

• Cash and Cash Equivalents: $28 million as of September 30, 2024.

• 2024 Revenue Guidance: $46.6 million to $47.6 million, a decrease of 11% to 9% year over year.

• 2025 Revenue Guidance: $47.6 million to $49.5 million, growth of 2% to 6% year over year.

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

Release Date: November 08, 2024

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

Positive Points

• Apyx Medical Corp (NASDAQ:APYX) announced a strategic restructuring to streamline operations and focus resources, which is expected to extend their financial runway into 2027.

• The company reported a 9% growth in disposable handpiece revenue overall and 15% growth in the United States, indicating strong demand for their consumable products.

• Apyx Medical Corp (NASDAQ:APYX) is in the final stages of developing the Aon body contouring system, which integrates multiple technologies into a single device, potentially positioning the company as a leader in surgical aesthetics.

• The company received a $7 million direct cash investment from Manta Harla Capital Management, strengthening its balance sheet and validating the potential of its technology.

• Apyx Medical Corp (NASDAQ:APYX) has launched a direct-to-consumer strategy to increase awareness of its Renuvion technology, leveraging key influencers and lifestyle expos to boost visibility.

Negative Points

• Total revenue for the third quarter decreased by 4% year-over-year, primarily due to a 6% decline in sales of advanced energy products.

• The company reduced its US workforce by nearly 25% as part of its restructuring efforts, indicating significant operational changes and potential impacts on employee morale.

• Apyx Medical Corp (NASDAQ:APYX) reported a net loss attributable to shareholders of $4.7 million, slightly higher than the previous year's loss of $4.6 million.

• The company is facing macroeconomic challenges, including the impact of GLP-1 drugs on procedural volumes, which is expected to continue affecting capital equipment sales.

• Gross profit margin decreased to 60.5% from 66.6% in the prior year period, driven by a decrease in the average selling price of generators and changes in sales mix.