TORONTO - Venus Concept Inc. (NASDAQ: NASDAQ:VERO), a leader in medical aesthetic technology, announced today it has received clearance from Australia's Therapeutic Goods Administration (TGA) to market its Venus Bliss MAX system in the country. The device is a multi-technology platform designed for body shaping treatments, including cellulite reduction, skin treatments, muscle conditioning, and fat reduction.
The Venus Bliss MAX integrates the company's proprietary (MP)2 applicator, which combines Multi-Polar Radio Frequency with Pulsed Electro Magnetic Fields and advanced VariPulse™ technology, with Venus™ FlexMax EMS applicators and a diode laser. The clearance allows Venus Concept to expand its global reach and offer Australian aesthetic clinicians a comprehensive body treatment solution.
Dr. Hemanth Varghese, President and Chief Operating Officer of Venus Concept, expressed confidence in the device's potential success in Australia, citing positive feedback from service providers globally. The Venus Bliss MAX is part of Venus Concept's extensive product portfolio, which includes a variety of minimally invasive and non-invasive medical aesthetic and hair restoration technologies.
The company's announcement also included a cautionary statement regarding forward-looking statements, highlighting the potential risks and uncertainties that could affect its business operations and financial performance. Factors that could impact the company's performance include those described in the company's regulatory filings, such as its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Venus Concept operates in over 60 countries and has direct markets in 12 locations. The company's product lineup features several aesthetic device platforms and hair restoration systems, supported by investors with expertise in the healthcare industry. This news is based on a press release statement from Venus Concept.
In other recent news, Venus Concept Inc. has secured an additional $1 million in bridge financing, according to their latest 8-K filing with the Securities and Exchange Commission. This is a part of a term loan facility of up to $5 million with Madryn Health Partners, with the loan secured by a priority interest in all real and personal property collateral of Venus Concept and its subsidiaries. The company plans to use the funds for general working capital purposes.
In their Second Quarter 2024 financial results, Venus Concept reported a 17% year-over-year decrease in revenue, down to $16.6 million. Despite this, the company has made significant strides in its restructuring initiatives, achieving a 37% reduction in cash used in operations and a 39% reduction in total debt. A new in-house financing program, Venus Prime, has been well received in North America.
However, international revenue fell by 29% due to strategic restructuring and fluctuating ordering patterns from new distribution partners. The company also reported a net loss attributable to stockholders of $20 million, up from $7.4 million the previous year. For the future, Venus Concept is not providing full-year financial guidance but expects revenue of at least $17 million for Q3 2024 and is focusing on cost reduction and cash management initiatives for long-term growth and profitability.
InvestingPro Insights
As Venus Concept Inc. (NASDAQ: VERO) secures regulatory clearance for its Venus Bliss MAX system in Australia, the company's financial health and market performance provide additional context for investors. While the company's expansion into the Australian market is a positive development, InvestingPro data indicates some challenges on the financial front.
InvestingPro data shows that Venus Concept has a market capitalization of approximately $3.62 million as of Q2 2024, reflecting the size of the company in the market. However, the company's P/E ratio stands at -0.09, suggesting that investors are not expecting earnings growth in the near future. Additionally, the revenue has declined by 19.23% over the last twelve months as of Q2 2024, which could be a point of concern for potential investors.
InvestingPro Tips highlight that Venus Concept operates with a significant debt burden and is rapidly burning through cash. Analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. Over the last year, the price of Venus Concept's shares has fallen by 78.09%, and the company does not pay a dividend to shareholders, which might deter income-focused investors.
For those considering an investment in Venus Concept, it is important to weigh these financial metrics and InvestingPro Tips against the company's potential for growth in the medical aesthetic technology sector. For more in-depth analysis and additional InvestingPro Tips, visit https://www.investing.com/pro/VERO, where 9 tips are available to help make an informed decision.
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