Venus Concept Reports Preliminary Revenue Results for Fourth Quarter 2020; Introduces Fiscal Year 2021 Revenue Guidance
January 14 2021 - 6:30AM
Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, today reported
preliminary unaudited revenue results for the three months ended
December 31, 2020 and introduced revenue guidance expectations for
the twelve months ended December 31, 2021.
Management Commentary:
“We continued to see improvements in the
operating environment in our key markets in the fourth quarter as
evidenced by the 22% to 27% growth quarter-over-quarter implied by
our preliminary revenue range,” said Domenic Serafino, Chief
Executive Officer of Venus Concept. “The improvement in growth
trends as compared to the third quarter was driven by strong
procedure-related activity in both our aesthetics and hair
restoration businesses, and strong system sales results which were
driven by sales of our Venus Bliss and expanded adoption of our
ARTAS iX®. Importantly, while the recovery in capital equipment
demand in the aesthetics and hair restoration markets remains
challenged due to COVID-19, our focused commercial strategy is
helping us maximize our opportunities to drive adoption.”
Mr. Serafino continued: “While the near-term
outlook has been challenged by this global pandemic, we continue to
believe the long-term opportunity remains extremely compelling for
us as a leading player in both the global minimally
invasive/non-invasive medical aesthetics market and the minimally
invasive surgical hair restoration market. We introduced our
revenue guidance for fiscal year 2021, which calls for
year-over-year growth in a range of 27% to 31%. Additionally, we
expect that the reduction in the operating expense profile of the
combined company, achieved in 2020, will position us well to drive
strong operating leverage in 2021 and beyond. Finally, we enter
2021 with a significantly enhanced balance sheet and financial
condition as a result of the notable announcements we made in
December including a new loan agreement, refinanced long-term debt
obligations and net proceeds from our recent public offering.
Together, these activities and our prudent operating expense
control this year, resulted in approximately $30 million in cash at
year-end to support our future growth initiatives.”
Preliminary Fourth Quarter 2020 Revenue
Summary:
- Preliminary total GAAP revenue for
the three months ended December 31, 2020 is expected to be in the
range of $25.3 million to $26.3 million, compared to total GAAP
revenue of $31.9 million for the fourth quarter of 2019,
representing a decrease of 24% to 21% year-over-year.
Preliminary Fiscal Year 2020 Revenue
Summary:
- Preliminary total GAAP revenue for
the twelve months ended December 31, 2020 is expected to be in the
range of $77.5 million to $78.5 million, compared to total GAAP
revenue of $110.4 million for the twelve months ended December 31,
2019, representing a decrease of 37% to 36% year-over-year.
Fiscal Year 2021 Revenue Guidance:
- Assuming no significant and
persistent resurgence of COVID-19 and related lockdown measures in
key markets that would negatively impact the Company’s customer
base, total revenue for the twelve months ending December 31, 2021
is expected to be in the range of $98.0 million to $103.0 million,
representing an increase of approximately 27% to 31%
year-over-year, compared to the preliminary total GAAP revenue
range for fiscal year 2020 of $77.5 million to $78.5 million.
About Venus Concept
Venus Concept is an innovative global medical
aesthetic technology leader with a broad product portfolio of
minimally invasive and non-invasive medical aesthetic and hair
restoration technologies and reach in over 60 countries and 21
direct markets. Venus Concept focuses its product sales strategy on
a subscription-based business model in North America and in its
well-established direct global markets. Venus Concept’s product
portfolio consists of aesthetic device platforms, including Venus
Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus
Freeze Plus, Venus Heal, Venus Glow, Venus Bliss, Venus Epileve and
Venus Viva MD. Venus Concept’s hair restoration systems includes
NeoGraft®, an automated hair restoration system that facilitates
the harvesting of follicles during a FUE process and the ARTAS® and
ARTAS iX® Robotic Hair Restoration systems, which harvest
follicular units directly from the scalp and create recipient
implant sites using proprietary algorithms. Venus Concept has been
backed by leading healthcare industry growth equity investors
including EW Healthcare Partners (formerly Essex Woodlands),
HealthQuest Capital, Longitude Capital Management, and Aperture
Venture Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains contains
“forward-looking” statements within the meaning of Section 27A
of the Securities Act of 1933, as amended (the “1933 Act”) and
Section 21E of the Securities Exchange Act of 1934, as amended
(the “1934 Act”). Any statements contained herein that are not of
historical facts may be deemed to be forward-looking statements. In
some cases, you can identify these statements by words such as such
as “anticipates,” “believes,” “plans,” “expects,” “projects,”
“future,” “intends,” “may,” “should,” “could,” “estimates,”
“predicts,” “potential,” “continue,” “guidance,” and other similar
expressions that are predictions of or indicate future events and
future trends. These forward-looking statements include, but are
not limited to, statements about the expected synergies and cost
savings; our financial performance; the growth in demand for our
systems and other products; and general economic conditions,
including the global economic impact of COVID-19, involve risks and
uncertainties that may cause results to differ materially from
those set forth in the statements. These forward-looking statements
are based on current expectations, estimates, forecasts, and
projections about our business and the industry in which we operate
and management's beliefs and assumptions and are not guarantees of
future performance or developments and involve known and unknown
risks, uncertainties, and other factors that are in some cases
beyond our control. As a result, any or all of our forward-looking
statements in this communication may turn out to be inaccurate.
Factors that could materially affect our business operations and
financial performance and condition include, but are not limited
to, those risks and uncertainties described under Part I Item
1A—“Risk Factors” in our most recent Annual Report on
Form 10-K, Part II Item 1A—“Risk Factors” in our most recent
Form 10-Q, and in other documents we may file with the Securities
and Exchange Commission. You are urged to consider these factors
carefully in evaluating the forward-looking statements and are
cautioned not to place undue reliance on the forward-looking
statements. The forward-looking statements are based on information
available to us as of the date of this communication. Unless
required by law, we do not intend to publicly update or revise any
forward-looking statements to reflect new information or future
events or otherwise.
Investor Relations Contact:
Westwicke Partners on behalf of Venus Concept
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
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