Vapotherm Reports Second Quarter 2023 Financial Results
- 23.6% increase in net revenue
- Gross margin increased by 780 basis points
- Decrease in operating expenses and net cash burn
- Unrestricted cash balance of $18.0 million
- Revised fiscal 2023 outlook with expected decrease in revenue, gross margins, and operating expenses
- Implementation of a 1-for-8 reverse stock split
Second Quarter 2023 Summary and Highlights
-
Net revenue for the second quarter of 2023 was
, an increase of$16.0 million 23.6% as compared to the second quarter of 2022-
Disposables revenue increased by
38.1% as compared to the second quarter of 2022 due to recovery of customer demand post-COVID -
Capital revenue increased by
42.0% as compared to the second quarter of 2022 due to strong HVT 2.0 sales -
Non-GAAP net revenue excluding Vapotherm Access, which the Company exited in the fourth quarter of 2022, increased by
33.8% as compared to the second quarter of 2022
-
Disposables revenue increased by
-
Gross margin in the second quarter of 2023 was
42.8% -
Gross margin increased by 780 basis points over the first quarter of 2023 due to continued benefits from the transition of the Company’s manufacturing operations to
Mexico
-
Gross margin increased by 780 basis points over the first quarter of 2023 due to continued benefits from the transition of the Company’s manufacturing operations to
-
For the second quarter of 2023, GAAP operating expenses were
and non-GAAP cash operating expenses were$17.0 million . Both decreased compared to the prior year period and first quarter of 2023 as a result of the Company’s Path to Profitability initiatives:$14.2 million -
GAAP operating expenses decreased by
over the first quarter of 2023 and by$2.8 million over the second quarter of 2022$25.2 million -
Non-GAAP cash operating expenses decreased by
over the first quarter of 2023 and by$2.2 million over the second quarter of 2022$7.6 million
-
GAAP operating expenses decreased by
-
The Company’s unrestricted cash balance was
at the end of the second quarter of 2023$18.0 million -
Net cash burn of
in the second quarter was$7.8 million less than net cash burn in the first quarter of 2023$3.2 million
-
Net cash burn of
“We delivered a good second quarter and are pleased with the progress we continue to see in the business as we drive forward on our path to profitability,” said Joseph Army, President and CEO. “HVT 2.0 sales continue to be strong and we are seeing encouraging trends in
Results for the Three Months June 30, 2023
The following table reflects the Company’s net revenue for the three months ended June 30, 2023 and 2022:
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital (product & lease revenue) |
|
$ |
3,646 |
|
|
|
22.7 |
% |
|
$ |
2,568 |
|
|
|
19.8 |
% |
|
$ |
1,078 |
|
|
|
42.0 |
% |
Disposables |
|
|
10,927 |
|
|
|
68.1 |
% |
|
|
7,913 |
|
|
|
61.0 |
% |
|
|
3,014 |
|
|
|
38.1 |
% |
Service and other |
|
|
1,464 |
|
|
|
9.2 |
% |
|
|
2,490 |
|
|
|
19.2 |
% |
|
|
(1,026 |
) |
|
|
(41.2 |
)% |
Total net revenue |
|
$ |
16,037 |
|
|
|
100.0 |
% |
|
$ |
12,971 |
|
|
|
100.0 |
% |
|
$ |
3,066 |
|
|
|
23.6 |
% |
Net revenue for the second quarter of 2023 was
Revenue information by geography is summarized as follows:
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|||||||||||||||
|
|
(in thousands, except percentages) |
|
|||||||||||||||||||||
|
|
Amount |
|
|
% of Revenue |
|
|
Amount |
|
|
% of Revenue |
|
|
$ |
|
|
% |
|
||||||
|
|
$ |
11,847 |
|
|
|
73.9 |
% |
|
$ |
9,498 |
|
|
|
73.2 |
% |
|
$ |
2,349 |
|
|
|
24.7 |
% |
International |
|
|
4,190 |
|
|
|
26.1 |
% |
|
|
3,473 |
|
|
|
26.8 |
% |
|
|
717 |
|
|
|
20.6 |
% |
Total net revenue |
|
$ |
16,037 |
|
|
|
100.0 |
% |
|
$ |
12,971 |
|
|
|
100.0 |
% |
|
$ |
3,066 |
|
|
|
23.6 |
% |
Gross profit and gross margin for the second quarter of 2023 was
Total operating expenses were
Net loss for the second quarter of 2023 was
Adjusted EBITDA was negative
Cash Position
Cash and cash equivalents were
Fiscal 2023 Outlook
For fiscal 2023, the Company now expects full year revenue to be between
Reverse Stock Split
At the Company’s annual meeting of stockholders held on June 20, 2023, the stockholders approved a proposal granting the Board of Directors the discretion to effect a reverse stock split of the Company’s common stock at a ratio of between 1-for-3 and 1-for-8 at any point through the next annual meeting to be held in 2024. On August 8, 2023, the Company’s Board of Directors approved a 1-for-8 reverse stock split and a corresponding reduction in authorized shares of the Company’s common stock, effective as of 12:01 a.m., Eastern Time, on August 18, 2023, with shares expected to begin trading on a split-adjusted basis at market open on August 18, 2023 under the existing symbol “VAPO” and new CUSIP number 922107 305. In connection with the reverse stock split, every eight shares of the Company’s common stock issued and outstanding as of the effective date of the split will be automatically converted into one share of the Company’s common stock. Fractional shares will not be issued in connection with the reverse stock split and stockholders who would otherwise hold fractional shares because the number of shares of common stock they hold before the reverse stock split is not evenly divisible by eight will be entitled to receive a cash payment in lieu of such fractional shares. The intent of the reverse stock split is to regain compliance with minimum share price requirement, although no assurance can be provided that the reverse stock split will result in the Company’s compliance with the NYSE minimum share price requirement, or that the Company will be able to regain or maintain compliance with the applicable NYSE listing standards.
Conference Call Information
Management will host a conference call at 4:30 p.m. Eastern Time on August 8, 2023 to discuss the results of the quarter with a question and answer session. To listen to the conference call on your telephone, please dial +1 (888) 330-2391 for
Website Information
Vapotherm routinely posts important information for investors on the Investor Relations section of its website, http://investors.vapotherm.com/. Vapotherm intends to use this website as a means of disclosing material, non-public information and for complying with Vapotherm’s disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Vapotherm’s website, in addition to following Vapotherm’s press releases, Securities and Exchange Commission (“SEC”) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Vapotherm’s website is not incorporated by reference into, and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including non-GAAP net revenue excluding Vapotherm Access, EBITDA, Adjusted EBITDA, non-GAAP operating expenses excluding impairment of goodwill, impairment of long-lived and intangible assets and gain (loss) on disposal of property and equipment, and non-GAAP cash operating expenses excluding additional items, including stock-based compensation expense, depreciation and amortization, termination benefits, gain from deconsolidation, and change in fair value of contingent consideration, which differ from operating expenses calculated in accordance with
These non-GAAP financial measures are presented because the Company believes they are useful indicators of its operating performance. Management uses these non-GAAP financial measures, as measures of the Company’s operating performance and for planning purposes, including the preparation of the Company’s annual operating budget and financial projections. The Company believes these measures are useful to investors as supplemental information because they are frequently used by analysts, investors and other interested parties to evaluate companies in its industry. The Company believes Adjusted EBITDA is useful to its management and investors as a measure of comparative operating performance from period to period.
These non-GAAP financial measures should not be considered alternatives to, or superior to, net income or loss as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP. They should not be construed to imply that the Company’s future results will be unaffected by unusual or non-recurring items. In addition, Adjusted EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not reflect certain cash requirements such as tax payments, debt service requirements, capital expenditures and certain other cash costs that may recur in the future. Adjusted EBITDA contains certain other limitations, including the failure to reflect our capital expenditures, cash requirements for working capital needs and cash costs to replace assets being depreciated and amortized. In evaluating Adjusted EBITDA, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in the Adjusted EBITDA presentation. The Company’s presentation of Adjusted EBITDA should not be construed to imply that its future results will be unaffected by any such adjustments. Management compensates for these limitations by primarily relying on the Company’s GAAP results in addition to using Adjusted EBITDA and other non-GAAP financial measures on a supplemental basis. The Company’s definitions of Adjusted EBITDA and non-GAAP operating expenses excluding impairment of long-lived and intangible assets and loss on disposal of property and equipment and non-GAAP cash operating expenses excluding the additional items detailed below, are not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation.
About Vapotherm
Vapotherm, Inc. (NYSE: VAPO) is a publicly traded developer and manufacturer of advanced respiratory technology based in
Vapotherm high velocity therapy is mask-free non-invasive respiratory support and is a front-line tool for relieving respiratory distress—including hypercapnia, hypoxemia, and dyspnea. It allows for the fast, safe treatment of undifferentiated respiratory distress with one tool. The HVT 2.0 and Precision Flow systems’ mask-free interface delivers optimally conditioned breathing gases, making it comfortable for patients and reducing the risks and care complexities associated with mask therapies. While being treated, patients can talk, eat, drink and take oral medication.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about the Company’s expected net revenue, including revenue breakdown, gross margin, operating expenses, non-GAAP cash operating expenses and cash burn for fiscal year 2023 and the timing and effect of the reverse stock split. In some cases, you can identify forward-looking statements by terms such as “expect,” “continue,” “plan,” “intend,” “will,” “outlook,” “guidance,” or “typically,” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words, and the use of future dates. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include, but are not limited to the following: Vapotherm has incurred losses in the past and may be unable to achieve or sustain profitability in the future or achieve its 2023 financial guidance including reduced cash burn; risks associated with its manufacturing operations in
Financial Statements:
VAPOTHERM, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share amounts) |
||||||||
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
||
|
|
(unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
18,000 |
|
|
$ |
15,738 |
|
Accounts receivable, net of expected credit losses of |
|
|
8,918 |
|
|
|
9,102 |
|
Inventories, net |
|
|
25,144 |
|
|
|
32,980 |
|
Prepaid expenses and other current assets |
|
|
4,518 |
|
|
|
2,081 |
|
Total current assets |
|
|
56,580 |
|
|
|
59,901 |
|
Property and equipment, net |
|
|
24,444 |
|
|
|
26,636 |
|
Operating lease right-of-use assets |
|
|
4,673 |
|
|
|
5,805 |
|
Restricted cash |
|
|
1,109 |
|
|
|
1,109 |
|
Goodwill |
|
|
562 |
|
|
|
536 |
|
Deferred income tax assets |
|
|
128 |
|
|
|
96 |
|
Other long-term assets |
|
|
2,588 |
|
|
|
2,112 |
|
Total assets |
|
$ |
90,084 |
|
|
$ |
96,195 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,160 |
|
|
$ |
2,739 |
|
Contract liabilities |
|
|
1,301 |
|
|
|
1,216 |
|
Accrued expenses and other current liabilities |
|
|
11,661 |
|
|
|
15,609 |
|
Total current liabilities |
|
|
15,122 |
|
|
|
19,564 |
|
Long-term loans payable, net |
|
|
101,820 |
|
|
|
96,994 |
|
Other long-term liabilities |
|
|
7,598 |
|
|
|
7,827 |
|
Total liabilities |
|
|
124,540 |
|
|
|
124,385 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ deficit |
|
|
|
|
|
|
||
Preferred stock ( |
|
|
- |
|
|
|
- |
|
Common stock ( |
|
|
49 |
|
|
|
29 |
|
Additional paid-in capital |
|
|
488,419 |
|
|
|
461,940 |
|
Accumulated other comprehensive loss |
|
|
(44 |
) |
|
|
(157 |
) |
Accumulated deficit |
|
|
(522,880 |
) |
|
|
(490,002 |
) |
Total stockholders’ deficit |
|
|
(34,456 |
) |
|
|
(28,190 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
90,084 |
|
|
$ |
96,195 |
|
VAPOTHERM, INC. |
||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
||||||||||
Net revenue |
|
$ |
16,037 |
|
|
$ |
12,971 |
|
|
$ |
33,768 |
|
|
$ |
34,593 |
|
Cost of revenue |
|
|
9,177 |
|
|
|
10,606 |
|
|
|
20,696 |
|
|
|
24,336 |
|
Gross profit |
|
|
6,860 |
|
|
|
2,365 |
|
|
|
13,072 |
|
|
|
10,257 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
3,723 |
|
|
|
6,310 |
|
|
|
7,710 |
|
|
|
11,859 |
|
Sales and marketing |
|
|
8,276 |
|
|
|
11,833 |
|
|
|
17,868 |
|
|
|
25,155 |
|
General and administrative |
|
|
5,019 |
|
|
|
5,323 |
|
|
|
10,789 |
|
|
|
14,277 |
|
Impairment of goodwill |
|
|
- |
|
|
|
14,701 |
|
|
|
- |
|
|
|
14,701 |
|
Impairment of right-of-use assets |
|
|
- |
|
|
|
4,036 |
|
|
|
432 |
|
|
|
4,036 |
|
(Gain) loss on disposal of property and equipment |
|
|
(2 |
) |
|
|
- |
|
|
|
53 |
|
|
|
- |
|
Total operating expenses |
|
|
17,016 |
|
|
|
42,203 |
|
|
|
36,852 |
|
|
|
70,028 |
|
Loss from operations |
|
|
(10,156 |
) |
|
|
(39,838 |
) |
|
|
(23,780 |
) |
|
|
(59,771 |
) |
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(4,642 |
) |
|
|
(2,849 |
) |
|
|
(8,973 |
) |
|
|
(4,596 |
) |
Interest income |
|
|
26 |
|
|
|
40 |
|
|
|
54 |
|
|
|
57 |
|
Foreign currency gain (loss) |
|
|
9 |
|
|
|
(46 |
) |
|
|
(145 |
) |
|
|
(115 |
) |
Loss on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,114 |
) |
Net loss before income taxes |
|
$ |
(14,763 |
) |
|
$ |
(42,693 |
) |
|
$ |
(32,844 |
) |
|
$ |
(65,539 |
) |
Provision (benefit) for income taxes |
|
|
25 |
|
|
|
(10 |
) |
|
|
34 |
|
|
|
82 |
|
Net loss |
|
$ |
(14,788 |
) |
|
$ |
(42,683 |
) |
|
$ |
(32,878 |
) |
|
$ |
(65,621 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments |
|
|
(22 |
) |
|
|
(185 |
) |
|
|
113 |
|
|
|
(240 |
) |
Total other comprehensive (loss) gain |
|
|
(22 |
) |
|
|
(185 |
) |
|
|
113 |
|
|
|
(240 |
) |
Total comprehensive loss |
|
$ |
(14,810 |
) |
|
$ |
(42,868 |
) |
|
$ |
(32,765 |
) |
|
$ |
(65,861 |
) |
Net loss per share basic and diluted |
|
$ |
(0.29 |
) |
|
$ |
(1.61 |
) |
|
$ |
(0.72 |
) |
|
$ |
(2.48 |
) |
Weighted-average number of shares used in calculating net loss per share, basic and diluted |
|
|
50,625,778 |
|
|
|
26,574,027 |
|
|
|
45,644,863 |
|
|
|
26,448,257 |
|
VAPOTHERM, INC. |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In thousands) |
||||||||
|
|
Six Months Ended June 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(32,878 |
) |
|
$ |
(65,621 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
||
Stock-based compensation expense |
|
|
5,405 |
|
|
|
5,944 |
|
Depreciation and amortization |
|
|
2,445 |
|
|
|
2,739 |
|
Provision for credit losses |
|
|
(2 |
) |
|
|
285 |
|
Provision for inventory valuation |
|
|
283 |
|
|
|
815 |
|
Non-cash lease expense |
|
|
733 |
|
|
|
1,082 |
|
Change in fair value of contingent consideration |
|
|
- |
|
|
|
(3,113 |
) |
Impairment of goodwill |
|
|
- |
|
|
|
14,701 |
|
Impairment of long-lived and intangible assets |
|
|
432 |
|
|
|
4,036 |
|
Loss on disposal of property and equipment |
|
|
53 |
|
|
|
- |
|
Placed units reserve |
|
|
418 |
|
|
|
198 |
|
Interest paid in-kind |
|
|
4,553 |
|
|
|
- |
|
Amortization of discount on debt |
|
|
368 |
|
|
|
320 |
|
Deferred income taxes |
|
|
34 |
|
|
|
82 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
1,114 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
212 |
|
|
|
3,520 |
|
Inventories |
|
|
7,646 |
|
|
|
(2,683 |
) |
Prepaid expenses and other assets |
|
|
(2,794 |
) |
|
|
(408 |
) |
Accounts payable |
|
|
(315 |
) |
|
|
(2,441 |
) |
Contract liabilities |
|
|
72 |
|
|
|
(812 |
) |
Accrued expenses and other current liabilities |
|
|
(2,840 |
) |
|
|
(8,884 |
) |
Operating lease liabilities, current and long-term |
|
|
(1,213 |
) |
|
|
(1,013 |
) |
Net cash used in operating activities |
|
|
(17,388 |
) |
|
|
(50,139 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(1,408 |
) |
|
|
(6,289 |
) |
Net cash used in investing activities |
|
|
(1,408 |
) |
|
|
(6,289 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Proceeds from issuance of common stock and pre-funded warrants and
|
|
|
20,943 |
|
|
|
- |
|
Proceeds from loans, net of discount |
|
|
- |
|
|
|
99,094 |
|
Repayment of loans |
|
|
- |
|
|
|
(40,000 |
) |
Payments of debt extinguishment costs |
|
|
- |
|
|
|
(817 |
) |
Payment of debt issuance costs |
|
|
- |
|
|
|
(1,567 |
) |
Repayments on revolving loan facility |
|
|
- |
|
|
|
(6,608 |
) |
Payment of contingent consideration |
|
|
- |
|
|
|
(135 |
) |
Proceeds from exercise of stock options |
|
|
- |
|
|
|
55 |
|
Proceeds from exercise of warrants |
|
|
3 |
|
|
|
- |
|
Proceeds from issuance of common stock under Employee Stock Purchase Plan |
|
|
77 |
|
|
|
135 |
|
Net cash provided by financing activities |
|
|
21,023 |
|
|
|
50,157 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
35 |
|
|
|
(62 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
2,262 |
|
|
|
(6,333 |
) |
Cash, cash equivalents and restricted cash |
|
|
|
|
|
|
||
Beginning of period |
|
|
16,847 |
|
|
|
57,324 |
|
End of period |
|
$ |
19,109 |
|
|
$ |
50,991 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
||
Interest paid during the period |
|
$ |
2,720 |
|
|
$ |
3,294 |
|
Property and equipment purchases in accounts payable and accrued expenses |
|
$ |
175 |
|
|
$ |
224 |
|
Issuance of common stock to satisfy contingent consideration |
|
$ |
- |
|
|
$ |
5,630 |
|
Issuance of common stock warrants in conjunction with long term debt |
|
$ |
71 |
|
|
$ |
1,157 |
|
Issuance of common stock upon vesting of restricted stock units |
|
$ |
- |
|
|
$ |
12 |
|
Non-GAAP Financial Measures
The following table contains a reconciliation of GAAP net revenue to non-GAAP net revenue excluding Vapotherm Access for the three months ended June 30, 2023 and 2022, respectively, and the growth of such GAAP net revenue and non-GAAP net revenue excluding Vapotherm Access over the prior year period.
|
|
Three Months Ended June 30, |
|
|
Change |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
||||
(Unaudited) |
|
(in thousands, except percentages) |
|
|||||||||||||
GAAP net revenue |
|
$ |
16,037 |
|
|
$ |
12,971 |
|
|
$ |
3,066 |
|
|
|
23.6 |
% |
Vapotherm Access net revenue |
|
|
- |
|
|
|
(987 |
) |
|
|
987 |
|
|
|
(100.0 |
)% |
Non-GAAP net revenue excluding Vapotherm Access |
|
$ |
16,037 |
|
|
$ |
11,984 |
|
|
$ |
4,053 |
|
|
|
33.8 |
% |
The following table contains a reconciliation of net loss to Adjusted EBITDA for the three months ended June 30, 2023 and 2022, respectively.
|
|
Three Months Ended June 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
(Unaudited) |
|
(in thousands) |
|
|||||
Net loss |
|
$ |
(14,788 |
) |
|
$ |
(42,683 |
) |
Interest expense, net |
|
|
4,616 |
|
|
|
2,809 |
|
Provision (benefit) for income taxes |
|
|
25 |
|
|
|
(10 |
) |
Depreciation and amortization |
|
|
1,197 |
|
|
|
1,348 |
|
EBITDA |
|
$ |
(8,950 |
) |
|
$ |
(38,536 |
) |
Stock-based compensation |
|
|
2,585 |
|
|
|
2,498 |
|
Impairment of goodwill |
|
|
- |
|
|
|
14,701 |
|
Impairment of long-lived and intangible assets |
|
|
- |
|
|
|
4,036 |
|
Foreign currency |
|
|
(9 |
) |
|
|
46 |
|
Gain from deconsolidation |
|
|
(5 |
) |
|
|
- |
|
Gain on disposal of property and equipment |
|
|
(2 |
) |
|
|
- |
|
Change in fair value of contingent consideration |
|
|
- |
|
|
|
(2,925 |
) |
Adjusted EBITDA |
|
$ |
(6,381 |
) |
|
$ |
(20,180 |
) |
The following table contains a reconciliation of operating expenses to non-GAAP operating expenses and non-GAAP cash operating expenses for the three months ended June 30, 2023, March 31, 2023 and June 30, 2022, respectively.
|
|
Three Months Ended |
|
|||||||||
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
June 30, 2022 |
|
|||
(Unaudited) |
|
(in thousands) |
|
|||||||||
GAAP operating expenses |
|
$ |
17,016 |
|
|
$ |
19,836 |
|
|
$ |
42,203 |
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
(14,701 |
) |
Impairment of long-lived and intangible assets |
|
|
- |
|
|
|
(432 |
) |
|
|
(4,036 |
) |
Gain (loss) on disposal of property and equipment |
|
|
2 |
|
|
|
(55 |
) |
|
|
- |
|
Non-GAAP operating expenses |
|
|
17,018 |
|
|
|
19,349 |
|
|
|
23,466 |
|
Stock-based compensation |
|
|
(2,534 |
) |
|
|
(2,773 |
) |
|
|
(2,299 |
) |
Termination benefits |
|
|
- |
|
|
|
- |
|
|
|
(1,844 |
) |
Depreciation and amortization |
|
|
(293 |
) |
|
|
(305 |
) |
|
|
(500 |
) |
Gain from deconsolidation |
|
|
5 |
|
|
|
114 |
|
|
|
- |
|
Change in fair value of contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
2,925 |
|
Non-GAAP cash operating expenses |
|
$ |
14,196 |
|
|
$ |
16,385 |
|
|
$ |
21,748 |
|
Supplemental Operating Metrics
|
June 30, |
|
|
|
|
|
|
|
|||||||
|
2023 |
|
|
2022 |
|
|
Change |
|
|||||||
|
Amount |
|
|
Amount |
|
|
Amount |
|
|
% |
|
||||
HVT 2.0 and precision flow units installed base |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
24,563 |
|
|
|
23,865 |
|
|
|
698 |
|
|
|
2.9 |
% |
International |
|
12,729 |
|
|
|
12,269 |
|
|
|
460 |
|
|
|
3.7 |
% |
Total |
|
37,292 |
|
|
|
36,134 |
|
|
|
1,158 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|||||||
|
2023 |
|
|
2022 |
|
|
Change |
|
|||||||
|
Amount |
|
|
Amount |
|
|
Amount |
|
|
% |
|
||||
HVT 2.0 and precision flow units sold and leased |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
293 |
|
|
|
129 |
|
|
|
164 |
|
|
|
127.1 |
% |
International |
|
146 |
|
|
|
220 |
|
|
|
(74 |
) |
|
|
(33.6 |
)% |
Total |
|
439 |
|
|
|
349 |
|
|
|
90 |
|
|
|
25.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Disposable patient circuits sold |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
69,323 |
|
|
|
55,333 |
|
|
|
13,990 |
|
|
|
25.3 |
% |
International |
|
35,744 |
|
|
|
24,785 |
|
|
|
10,959 |
|
|
|
44.2 |
% |
Total |
|
105,067 |
|
|
|
80,118 |
|
|
|
24,949 |
|
|
|
31.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808067109/en/
Investor Relations:
Mark Klausner or Mike Vallie, Westwicke, an ICR Company, ir@vtherm.com, +1 (603) 658-0011
Source: Vapotherm, Inc.
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