Apyx Medical Corporation Reports Preliminary Fourth Quarter and Full Year 2023 Revenue Results

Rhea-AI Summary

Apyx Medical Corporation (NASDAQ:APYX) reported preliminary revenue results for the fourth quarter and full year ended December 31, 2023. Total revenue for Q4 2023 was approximately $14.2 to $14.6 million, representing 13% to 16% year-over-year growth. Full year 2023 revenue was approximately $51.9 to $52.3 million, showing 17% to 18% year-over-year growth.

Positive

• None.

Negative

• Capital equipment purchasing environment in the cosmetic surgery market proved to be more challenging than anticipated, leading to softer-than-expected Advanced Energy sales performance.

Insights

Financial Analyst

Reviewing the preliminary revenue results released by Apyx Medical Corporation, we observe a consistent year-over-year growth, with total revenue increasing by 13% to 16% for the fourth quarter and 17% to 18% for the full year. Notably, the Advanced Energy segment, which is the core of Apyx's business, has shown a robust growth trajectory, albeit slightly below management's expectations. The growth in the OEM segment also remains steady at 14%.

Investors should consider that the company's performance in the Advanced Energy segment is indicative of its competitive positioning within the cosmetic surgery market. The reported growth, despite being softer than expected, suggests resilience in product demand. However, the mention of a challenging capital equipment purchasing environment and a 'wait-and-see' approach by prospective customers could signal a need for cautious optimism regarding future sales momentum.

Given the current economic climate, where discretionary spending on cosmetic procedures might be more elastic, Apyx's short-term performance could face headwinds. Investors should monitor consumer confidence indices and healthcare spending trends as leading indicators of the company's future performance. The long-term view, however, remains positive if Apyx can maintain its growth trajectory and adapt to market conditions. The company's ability to navigate the current purchasing environment and convert its robust pipeline into actual sales will be critical for sustained growth.

Market Research Analyst

The cosmetic surgery market is highly competitive and sensitive to economic cycles. Apyx Medical Corporation's Renuvion® technology is part of a niche within this market, focusing on helium plasma and radiofrequency treatments. The growth figures, while promising, must be contextualized within broader industry trends, such as increased consumer interest in minimally invasive procedures and a growing emphasis on aesthetic appearance.

One area of concern is the softer sales performance in the Advanced Energy segment, which may reflect broader market dynamics. The cautious approach to capital equipment purchasing suggests that Apyx's clientele, primarily cosmetic surgery practitioners, are responding to underlying economic uncertainties. This behavioral shift could impact the company's sales cycle and necessitate adjustments in sales strategies, such as offering financing options or emphasizing the long-term value proposition of their equipment.

It's crucial for stakeholders to understand that the company's revenue growth is not solely indicative of market share gains but also of market conditions. The ability of Apyx to maintain growth in a challenging environment could be a testament to the strength of its product offering and brand. However, stakeholders should remain vigilant about the company's strategies to convert interest into sales, as this will be a key determinant of future revenue growth and market penetration.

Medical Device Industry Analyst

Apyx Medical Corporation's preliminary revenue results shed light on the performance of their proprietary Renuvion® technology. This technology, which utilizes helium plasma and radiofrequency energy, is part of a specialized segment of the medical device industry that caters to cosmetic surgery procedures. The reported growth, particularly in the Advanced Energy segment, indicates a steady demand for innovative cosmetic surgery solutions.

The medical device industry is highly regulated and requires significant investment in research and development. Apyx's ability to generate continuous growth in this segment suggests that their investments in innovation are paying off. However, the softer sales performance relative to expectations and the cautious purchasing behavior of potential new customers may point to a need for increased focus on market education and evidence generation to demonstrate the clinical and economic value of their technology.

Long-term implications for stakeholders include the potential for Apyx to solidify its market position if it can overcome the current purchasing hurdles. The emphasis on a robust pipeline of potential new customers is encouraging, but the conversion of this pipeline into actual sales will be critical. As a specialized segment, the helium plasma and radiofrequency market may not be as large as other medical device markets, but it has the potential for high margins and brand loyalty if customer satisfaction and clinical outcomes are positive.

CLEARWATER, Fla.--(BUSINESS WIRE)-- Apyx Medical Corporation (NASDAQ:APYX) (the “Company”), the manufacturer of a proprietary helium plasma and radiofrequency technology marketed and sold as Renuvion^®, today reported preliminary revenue results for the fourth quarter and full year ended December 31, 2023.

Preliminary Fourth Quarter 2023 Revenue Summary:

• Total revenue in a range of approximately $14.2 to $14.6 million, representing growth of 13% to 16% year-over-year.
  • Advanced Energy revenue in a range of approximately $11.9 to $12.3 million, representing growth of 12% to 16% year-over-year.
  • OEM revenue of approximately $2.4 million, representing growth of 14% year-over-year.

Preliminary Full Year 2023 Revenue Summary:

• Total revenue in a range of approximately $51.9 to $52.3 million, representing growth of 17% to 18% year-over-year.
  • Advanced Energy revenue in a range of approximately $43.1 to $43.5 million, representing growth of 17% to 18% year-over-year.
  • OEM revenue of approximately $8.8 million, representing growth of 14% year-over-year.

Management Comments:

“In the fourth quarter, we delivered double-digit sales growth in our Advanced Energy segment on a year-over-year and more than 20% growth on quarter-over-quarter basis,” said Charlie Goodwin, President and Chief Executive Officer. “Our Advanced Energy sales performance was softer than expected, as the capital equipment purchasing environment in the cosmetic surgery market ultimately proved to be more challenging than anticipated. Specifically, while our pipeline of potential new customers in the U.S. remained robust throughout the fourth quarter, we saw fewer-than-expected sales of our Advanced Energy generators to new U.S. customers, with more prospective customers taking a ‘wait-and-see’ approach to capital equipment purchasing, given concerns about the broader macroeconomic environment. While new generator adoption was slower-than-expected, we remain pleased with the strong feedback we continued to receive from our existing customers and the results they are achieving with our Renuvion^® technology.”

This press release includes Apyx Medical Corporation’s preliminary revenue results for the quarter and year ended December 31, 2023. Apyx Medical plans to release its fourth quarter and full year 2023 results in March 2024. Actual fourth quarter and full year 2023 revenue results are subject to completion of the Company’s year-end financial closing procedures and year-end audit procedures by the Company’s independent registered public accounting firm.

About Apyx Medical Corporation:

Apyx Medical Corporation is an advanced energy technology company with a passion for elevating people’s lives through innovative products, including its Helium Plasma Technology products marketed and sold as Renuvion^® in the cosmetic surgery market and J-Plasma^® in the hospital surgical market. Renuvion^® and J-Plasma^® offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. The Company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers. For further information about the Company and its products, please refer to the Apyx Medical Corporation website at www.ApyxMedical.com.

Cautionary Statement on Forward-Looking Statements:

Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to, projections of net revenue, margins, expenses, net earnings, net earnings per share, or other financial items; projections or assumptions concerning the possible receipt by the Company of any regulatory approvals from any government agency or instrumentality including but not limited to the U.S. Food and Drug Administration, supply chain disruptions, component shortages, manufacturing disruptions or logistics challenges; or macroeconomic or geopolitical matters and the impact of those matters on the Company’s financial performance.

Forward-looking statements and information are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause the Company’s actual results to differ materially and that could impact the Company and the statements contained in this release include but are not limited to risks, uncertainties and assumptions relating to the regulatory environment in which the Company is subject to, including the Company’s ability to gain requisite approvals for its products from the U.S. Food and Drug Administration and other governmental and regulatory bodies, both domestically and internationally; the impact of the March 2022 FDA Safety Communication on our business and operations; sudden or extreme volatility in commodity prices and availability, including supply chain disruptions; changes in general economic, business or demographic conditions or trends; changes in and effects of the geopolitical environment; liabilities and costs which the Company may incur from pending or threatened litigations, claims, disputes or investigations; and other risks that are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108363864/en/

Investor Relations:

ICR Westwicke on behalf of Apyx Medical Corporation

Mike Piccinino, CFA

investor.relations@apyxmedical.com

Source: Apyx Medical Corporation

FAQ

What is the ticker symbol for Apyx Medical Corporation?

The ticker symbol for Apyx Medical Corporation is APYX.

What was the total revenue for Apyx Medical Corporation in Q4 2023?

The total revenue for Apyx Medical Corporation in Q4 2023 was approximately $14.2 to $14.6 million, with 13% to 16% year-over-year growth.

Who is the President and CEO of Apyx Medical Corporation?

Charlie Goodwin is the President and Chief Executive Officer of Apyx Medical Corporation.

What was the full year 2023 revenue for Apyx Medical Corporation?

The full year 2023 revenue for Apyx Medical Corporation was approximately $51.9 to $52.3 million, showing 17% to 18% year-over-year growth.

What was the growth percentage for OEM revenue in Q4 2023?

The OEM revenue in Q4 2023 grew by 14% year-over-year, reaching approximately $2.4 million.