2018 Revenue of $42.4 Million Reflects 19.0% Increase Over Prior
Year
EXETER, N.H.--(BUSINESS WIRE)--
Vapotherm, Inc. (NYSE: VAPO), a global medical technology company
focused on the development and commercialization of its proprietary
Hi-VNI® Technology products that are used to treat patients of all ages
suffering from respiratory distress, announced today fourth quarter and
fiscal year 2018 financial results.
Fourth Quarter 2018 Summary
-
Revenue for the fourth quarter of 2018 was $11.7 million, representing
a 12.3% increase over the prior year period
-
Gross margin was 41.2% in comparison to gross margin of 33.2% in the
fourth quarter of 2017
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Completed an IPO raising $57.4 million in net proceeds
Fiscal Year 2018 Summary
-
Revenue for 2018 was $42.4 million, representing a 19.0% increase over
2017
-
Gross margin was 39.6% in comparison to gross margin of 37.2% in 2017
Fiscal 2019 Revenue Outlook
-
Anticipated revenue for 2019 of $49.0 million to $51.0 million,
representing a projected increase of 16% to 20%
“We are pleased with our progress during 2018, which included a 19.0%
revenue increase over the prior year” said Joe Army, President and CEO
of Vapotherm. “The work we completed in 2018 set the foundation to
further promote adoption of Hi-VNI Technology in 2019, including the
publication of clinical trial results from participating emergency
departments demonstrating Hi-VNI as non-inferior to NIPPV for
undifferentiated respiratory distress patients, receipt of a de novo
grant from the FDA which created a new category under which our
Precision Flow Hi-VNI™ system is currently the only product listed, and
the recently published IntellO2™ study which demonstrated
that IntellO2 helps clinicians maintain premature neonates in
the target oxygenation range significantly better than manual control
alone, the current standard of care.”
Results for the Three Months Ended December 31, 2018
The following table reflects the Company’s net revenue for the three
months ended December 31, 2018 and 2017:
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Three Months Ended December 31,
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2018
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2017
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Change
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(in thousands, except percentages)
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|
|
|
Amount
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|
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% of Revenue
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Amount
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% of Revenue
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$
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|
|
%
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Revenue
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Capital (product & lease revenue)
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$
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3,255
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27.9
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%
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$
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3,057
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29.4
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%
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$
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198
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6.5
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%
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Disposable
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7,972
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68.2
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%
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6,818
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65.5
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%
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1,154
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16.9
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%
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Service
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459
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4.0
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%
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532
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5.1
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%
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(73
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)
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-13.7
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%
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Total revenue
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$
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11,686
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100.0
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%
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$
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10,407
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100.0
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%
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$
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1,279
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12.3
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%
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Revenue for the fourth quarter of 2018 was $11.7 million, representing a
12.3% increase over the fourth quarter of 2017. Total capital revenue,
including both product sales and lease revenue, increased 6.5% year over
year as a result of product mix, partially offset by lower fourth
quarter 2018 capital sales and lease volumes when compared to the fourth
quarter of 2017. Disposable revenue as a percentage of total revenue for
the fourth quarter of 2018 and 2017 was 68.2% and 65.5%, respectively.
The increase in disposable revenue was primarily driven by an increase
in the installed base of Precision Flow capital units.
Revenue information by geography is summarized as follows:
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Three Months Ended December 31,
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2018
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2017
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Change
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(in thousands, except percentages)
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Amount
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% of Revenue
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Amount
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% of Revenue
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$
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%
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United States
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$
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9,032
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77.3
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%
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|
$
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8,101
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|
|
77.8
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%
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|
$
|
931
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|
|
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11.5
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%
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International
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2,654
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22.7
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%
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2,306
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|
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22.2
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%
|
|
|
348
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|
|
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15.1
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%
|
Total Revenue
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$
|
11,686
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|
|
|
100.0
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%
|
|
$
|
10,407
|
|
|
|
100.0
|
%
|
|
$
|
1,279
|
|
|
|
12.3
|
%
|
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|
|
|
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Revenue growth in the U.S. and International markets in the fourth
quarter of 2018 was driven primarily by an increase in disposable sales
related to an increase in the installed base of Precision Flow capital
units worldwide. We sold and leased 354 and 273 Precision Flow capital
units in the U.S. and International markets, respectively, in the fourth
quarter of 2018, bringing our total installed base of Precision Flow
capital units to 10,388 and 3,662 units in the U.S. and International
markets, respectively. In the fourth quarter of 2018, we sold
approximately 60,800 and 21,300 disposables in the U.S. and
International markets, respectively.
Gross profit for the fourth quarter of 2018 was $4.8 million, an
increase of $1.3 million over the same period of 2017. Gross margin was
41.2% in comparison to the gross margin of 33.2% in the fourth quarter
of 2017. The improvement in gross margin was driven by the absence of
non-recurring supply chain expenses, favorable sales mix, reductions in
direct material costs and, to a lesser extent, the launch of our
second-generation Vapotherm Transfer Unit (VTU) and improved overhead
absorption compared to the same period in the prior year.
Operating expenses were $15.8 million in the fourth quarter of 2018, an
increase of $3.7 million as compared to $12.1 million in the same period
last year. The increase in operating expenses was primarily a result of
increases in sales and marketing expenses related to an increase in the
number of U.S. sales territories and general and administrative expenses
which include IPO related costs.
Net loss for the fourth quarter of 2018 was $12.9 million, or $1.39 per
share, compared to $9.0 million, or $12.38 per share, in the fourth
quarter of 2017. Net loss per share was based on 9,232,750 and 729,623
weighted average shares outstanding for the fourth quarter of 2018 and
2017, respectively. The number of shares outstanding as of December 31,
2018 was 16,862,853.
Adjusted EBITDA was ($10.2) million for the fourth quarter of 2018 as
compared to ($8.2) million for the fourth quarter of 2017. The $2.0
million decrease in Adjusted EBITDA in the fourth quarter of 2018 was
due to increased operating expenses resulting from higher levels of
sales and marketing expenses related to an increase in the number of
U.S. sales territories and general and administrative expenses which
include initial public offering costs.
Results for the Twelve Months Ended December 31, 2018
The following table reflects the Company’s net revenue for the twelve
months ended December 31, 2018 and 2017:
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Year Ended December 31,
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2018
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2017
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Change
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(in thousands, except percentages)
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Amount
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% of Revenue
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Amount
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% of Revenue
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$
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|
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%
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Revenue
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Capital (product & lease revenue)
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$
|
12,114
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|
|
28.6
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%
|
|
$
|
9,747
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|
|
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27.4
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%
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$
|
2,367
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24.3
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%
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Disposable
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28,453
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|
67.1
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%
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|
23,960
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67.3
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%
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|
4,493
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18.8
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%
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Service
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1,810
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4.3
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%
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|
1,890
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5.3
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%
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(80
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)
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-4.2
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%
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Total revenue
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$
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42,377
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100.0
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%
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$
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35,597
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100.0
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%
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$
|
6,780
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19.0
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%
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Revenue for 2018 was $42.4 million, representing a 19.0% increase over
2017. Total capital revenue, including both product sales and lease
revenue, increased 24.3% year over year due to an increase in the number
of Precision Flow capital units sold and leased, as well a higher mix of
Precision Flow Plus capital units sold and leased. Disposable revenue
for the twelve months represented 67.1% and 67.3% of total revenue in
2018 and 2017 respectively. The increase in revenue was primarily driven
by an increase in disposable sales related to an increase in the
installed base of Precision Flow capital units worldwide.
Revenue information by geography is summarized as follows:
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Year Ended December 31,
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|
|
|
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|
|
2018
|
|
|
2017
|
|
|
Change
|
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|
|
(in thousands, except percentages)
|
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
$
|
|
|
%
|
|
United States
|
|
$
|
33,010
|
|
|
|
77.9
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%
|
|
$
|
27,958
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|
|
|
78.5
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%
|
|
$
|
5,052
|
|
|
|
18.1
|
%
|
International
|
|
|
9,367
|
|
|
|
22.1
|
%
|
|
|
7,639
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|
|
|
21.5
|
%
|
|
|
1,728
|
|
|
|
22.6
|
%
|
Total Revenue
|
|
$
|
42,377
|
|
|
|
100.0
|
%
|
|
$
|
35,597
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|
|
|
100.0
|
%
|
|
$
|
6,780
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|
|
|
19.0
|
%
|
|
|
|
|
|
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|
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Revenue growth in the U.S. and International markets in 2018 was driven
primarily by an increase in disposable sales related to an increase in
the installed base of Precision Flow capital units worldwide. In 2018,
we sold and leased 1,347 Precision Flow capital units and sold
approximately 222,100 disposables in the U.S. and we sold and leased 981
Precision Flow capital units and sold approximately 74,200 disposables
in International markets, respectively.
Gross profit for the twelve months of 2018 was $16.8 million, an
increase of $3.6 million over 2017. Gross margin was 39.6% in comparison
to 37.2% in 2017. The increase in gross margin was driven by favorable
capital sales mix due to our Precision Flow Plus which was launched in
April 2017 and our second generation VTU which was launched in April
2018, material cost reduction projects, the absence of non-recurring
supply chain expenses, and improved overhead absorption, partially
offset by a price increase on a previously outsourced component which we
now produce in-house.
Operating expenses were $54.0 million for the twelve months of 2018, an
increase of $11.9 million as compared to $42.1 million in the same
period of 2017. The increase in operating expenses was primarily a
result of increases in sales and marketing expenses related to an
expansion in the number of U.S. sales territories and general and
administrative expenses which include initial public offering costs.
Net loss for the twelve months of 2018 was $42.5 million or $14.62 per
share compared to $31.0 million or $44.82 per share in 2017. Net loss
per share was based on 2,905,085 and 694,548 weighted average shares
outstanding for the twelve months of 2018 and 2017, respectively.
Adjusted EBITDA was ($34.6) million for the twelve months of 2018 as
compared to ($27.1) million for the twelve months of 2017. The decrease
in Adjusted EBITDA in 2018 was due to higher operating expenses
resulting from higher levels of sales and marketing expenses and general
and administrative expenses which include IPO related costs.
Cash Position
Cash and cash equivalents were $58.2 million as of December 31, 2018
compared to $13.2 million as of September 30, 2018 and $26.5 million as
of December 31, 2017. Upon completion of our initial public offering in
November 2018, the Company received net proceeds of $57.4 million.
Fiscal 2019 Outlook
For fiscal 2019, we expect revenue in the range of $49.0 million to
$51.0 million, representing an anticipated year-over-year increase of
between 16% to 20%.
In the first quarter of 2019, we expect revenue in the range of $11.8
million to $12.0 million.
For fiscal 2019, we expect gross margin to be in the range of 41.0% and
41.5%.
For fiscal 2019, we expect operating expenses to be in the range of
$64.0 million to $66.0 million, which includes anticipated stock-based
compensation expense of $4.0 million. Our operating expenses are
typically the highest in the first quarter of the year due to sales and
marketing related activities that take place in the first quarter.
Conference Call
Management will host a conference call at 4:30 p.m. Eastern Time on
March 12th to discuss the results of the quarter and the year
with a question and answer session. To listen to the conference call on
your telephone, please dial (877) 201-0168 for U.S. callers, or (647)
788-4901 for international callers, approximately ten minutes prior to
the start time and reference conference code 1683679. To listen to a
live webcast, please visit the Investors section of the Vapotherm
website at: http://investors.vapotherm.com/events-and-presentations/events.
The webcast replay will be available on the Vapotherm website for 90
days following completion of the call. A replay of this conference call
will be available by telephone through March 19th, 2019 by
dialing (800) 585-8367 in the U.S. or (416) 621-4642 outside of the U.S.
The replay access code is 1683679.
Website Information
The Company routinely posts important
information for investors on the Investor Relations section of its
website, http://investors.vapotherm.com/.
The Company intends to use this website as a means of disclosing
material, non-public information and for complying with its disclosure
obligations under Regulation FD. Accordingly, investors should monitor
the Investor Relations section of the Company’s website, in addition to
following its press releases, Securities and Exchange Commission
filings, public conference calls, presentations and webcasts. The
information contained on, or that may be accessed through, the Company’s
website is not incorporated by reference into, and is not a part of,
this document.
Non-GAAP Financial Measures
This press release includes the non-GAAP financial measure of EBITDA and
Adjusted EBITDA, which differ from financial measures calculated in
accordance with U.S. generally accepted accounting principles (“GAAP”).
EBITDA in this press release represents net loss less interest expense,
net and depreciation and amortization. Adjusted EBITDA in this release
represents EBITDA as adjusted for the impact of foreign currency loss or
gain, loss on extinguishment of debt, the change in fair value of
warrant liabilities, and stock-based compensation expense. The Company
has reconciled these non-GAAP financial measures with the most directly
comparable GAAP financial measures in tables accompanying this release.
Adjusted EBITDA is presented because the Company believes it is a useful
indicator of its operating performance. Management uses the measure
principally as a measure 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 this
measure is useful to investors as supplemental information because it is
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.
Adjusted EBITDA is a non-GAAP financial measure and should not be
considered as an alternative 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. It should not be construed to imply that the
Company’s future results will be unaffected by unusual or non-recurring
items. In addition, the measure 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 contain 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 this
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 on a supplemental basis. The Company’s definition of
this measure is not necessarily comparable to other similarly titled
captions of other companies due to different methods of calculation.
About Vapotherm
Vapotherm, Inc.is a publicly traded developer and manufacturer
of advanced respiratory technology based in Exeter, New Hampshire, USA.
The Company develops innovative, comfortable, non-invasive technologies
for respiratory support of patients with chronic or acute breathing
disorders. Over 1.7 million patients have been treated with Vapotherm
Hi-VNI Technology. Hi-VNI Technology delivers noninvasive ventilatory
support for spontaneously breathing patients 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. Hi-VNI Technology’s mask-free
interface delivers optimally conditioned breathing gases, making it
comfortable for patients and reducing the risks associated with mask
therapies. While being treated, patients can talk, eat, drink and take
oral medication. For more information, visit www.vapotherm.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995, including statements about continued adoption of Hi-VNI
Technology in 2019 and full year and quarterly revenue, gross margin,
and operating expense guidance. In some cases, you can identify
forward-looking statements by terms such as ‘‘expect,’’ “guide” or
“typically” or the negative of these terms or other similar expressions,
although not all forward-looking statements contain these words. 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, Vapotherm may need to raise additional capital to fund its
existing commercial operations, develop and commercialize new products,
and expand its operations, Vapotherm’s dependence on sales generated
from its Precision Flow systems, competition from multi-national
corporations who have significantly greater resources than Vapotherm and
are more established in the respiratory market, the ability for
Precision Flow systems to gain increased market acceptance, its
inexperience directly marketing and selling its products, the potential
loss of one or more suppliers, including a sole source supplier,
Vapotherm’s susceptibility to seasonal fluctuations, Vapotherm’s failure
to comply with applicable United States and foreign regulatory
requirements, the failure to obtain U.S. Food and Drug Administration or
other regulatory authorization to market and sell future products or its
inability to secure and maintain patent or other intellectual property
protection for its products and the other risks and uncertainties
included under the heading “Risk Factors” in Vapotherm’s prospectus,
dated November 13, 2018, as filed with the Securities and Exchange
Commission on November 15, 2018, and in any subsequent filings with
the Securities and Exchange Commission. The forward-looking statements
contained in this press release reflect Vapotherm’s views as of the date
hereof, and Vapotherm does not assume and specifically disclaims any
obligation to update any forward-looking statements whether as a result
of new information, future events or otherwise, except as required by
law.
Financial Statements:
VAPOTHERM, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands,
except share amounts)
|
|
|
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
58,223
|
|
|
$
|
26,508
|
|
Accounts receivable, net of allowance
|
|
|
7,107
|
|
|
|
6,955
|
|
Inventory
|
|
|
13,710
|
|
|
|
11,458
|
|
Prepaid expenses and other current assets
|
|
|
2,683
|
|
|
|
2,302
|
|
Total current assets
|
|
|
81,723
|
|
|
|
47,223
|
|
Property and equipment, net
|
|
|
13,416
|
|
|
|
10,913
|
|
Restricted cash
|
|
|
1,799
|
|
|
|
1,852
|
|
Other long term assets
|
|
|
308
|
|
|
|
247
|
|
Total assets
|
|
$
|
97,246
|
|
|
$
|
60,235
|
|
Liabilities, Redeemable Convertible Preferred Stock and
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,148
|
|
|
$
|
2,252
|
|
Contract liability
|
|
|
79
|
|
|
|
64
|
|
Accrued expenses and other liabilities
|
|
|
7,653
|
|
|
|
9,281
|
|
Short term line of credit
|
|
|
3,163
|
|
|
|
3,020
|
|
Total current liabilities
|
|
|
14,043
|
|
|
|
14,617
|
|
Long-term loans payable
|
|
|
31,317
|
|
|
|
18,932
|
|
Warrant liability
|
|
|
-
|
|
|
|
529
|
|
Other long-term liabilities
|
|
|
325
|
|
|
|
377
|
|
Total liabilities
|
|
|
45,685
|
|
|
|
34,455
|
|
Commitments and contingencies (Note 9)
|
|
|
|
|
|
|
|
|
Redeemable convertible preferred stock (no par value, 0 and
10,712,137 shares
authorized as of December 31, 2018 and 2017, respectively; 0 and
10,515,351
shares issued and outstanding as of December 31, 2018 and 2017
respectively; (Note 15)
|
|
|
-
|
|
|
|
152,637
|
|
Stockholders' equity
|
|
|
|
|
|
|
|
|
Preferred stock ($.001 par value, 25,000,000 and 0 shares authorized
as of
December 31, 2018 and 2017, respectively; 0 shares issued and
outstanding
as of December 31, 2018 and 2017, respectively;
|
|
|
|
|
|
|
|
|
Common stock ($.001 par value, 175,000,000 and 12,886,588 shares
authorized
as of December 31, 2018 and 2017, respectively; 16,862,853 and
672,321
shares issued and outstanding as of December 31, 2018 and 2017,
respectively;
|
|
|
24
|
|
|
|
9
|
|
Additional paid-in capital
|
|
|
265,919
|
|
|
|
45,048
|
|
Accumulated deficit
|
|
|
(214,382
|
)
|
|
|
(171,914
|
)
|
Total stockholders' equity
|
|
|
51,561
|
|
|
|
(126,857
|
)
|
Total liabilities, redeemable convertible preferred stock and
stockholders’ equity
|
|
$
|
97,246
|
|
|
$
|
60,235
|
|
|
|
|
|
|
|
|
|
|
Vapotherm, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
thousands, except share and per share amounts)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Net revenue
|
|
$
|
11,686
|
|
|
$
|
10,407
|
|
Cost of goods sold
|
|
|
6,868
|
|
|
|
6,947
|
|
Gross profit
|
|
|
4,818
|
|
|
|
3,460
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
2,697
|
|
|
|
2,128
|
|
Sales and marketing
|
|
|
9,596
|
|
|
|
7,646
|
|
General and administrative
|
|
|
3,397
|
|
|
|
2,067
|
|
Loss on disposal of fixed assets
|
|
|
62
|
|
|
|
301
|
|
Total operating expenses
|
|
|
15,752
|
|
|
|
12,142
|
|
Loss from operations
|
|
|
(10,934
|
)
|
|
|
(8,682
|
)
|
Other (expense) income
|
|
|
|
|
|
|
|
|
Foreign currency gain (loss)
|
|
|
2
|
|
|
|
199
|
|
Interest income
|
|
|
97
|
|
|
|
1
|
|
Interest expense
|
|
|
(1,042
|
)
|
|
|
(622
|
)
|
Loss on extinguishment of debt
|
|
|
(1,000
|
)
|
|
|
-
|
|
Gain on change in fair value of warrant liabilities
|
|
|
-
|
|
|
|
73
|
|
Net loss
|
|
$
|
(12,877
|
)
|
|
$
|
(9,031
|
)
|
Net loss per share basic and diluted
|
|
$
|
(1.39
|
)
|
|
$
|
(12.38
|
)
|
Weighted-average number of shares used in calculating net
loss per share, basic and diluted
|
|
|
9,232,750
|
|
|
|
729,623
|
|
|
|
|
|
|
|
|
|
|
Vapotherm, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In
thousands, except share and per share amounts)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Net revenue
|
|
$
|
42,377
|
|
|
$
|
35,597
|
|
Cost of goods sold
|
|
|
25,605
|
|
|
|
22,357
|
|
Gross profit
|
|
|
16,772
|
|
|
|
13,240
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
8,771
|
|
|
|
7,569
|
|
Sales and marketing
|
|
|
33,927
|
|
|
|
26,221
|
|
General and administrative
|
|
|
11,186
|
|
|
|
8,020
|
|
Loss on disposal of fixed assets
|
|
|
121
|
|
|
|
301
|
|
Total operating expenses
|
|
|
54,005
|
|
|
|
42,111
|
|
Loss from operations
|
|
|
(37,233
|
)
|
|
|
(28,871
|
)
|
Other (expense) income
|
|
|
|
|
|
|
|
|
Foreign currency gain (loss)
|
|
|
-
|
|
|
|
4
|
|
Interest income
|
|
|
118
|
|
|
|
3
|
|
Interest expense
|
|
|
(3,064
|
)
|
|
|
(2,232
|
)
|
Loss on extinguishment of debt
|
|
|
(2,842
|
)
|
|
|
-
|
|
Gain on change in fair value of warrant liabilities
|
|
|
553
|
|
|
|
91
|
|
Net loss
|
|
$
|
(42,468
|
)
|
|
$
|
(31,005
|
)
|
Net loss per share basic and diluted
|
|
$
|
(14.62
|
)
|
|
$
|
(44.82
|
)
|
Weighted-average number of shares used in calculating net
loss per share, basic and diluted
|
|
|
2,905,085
|
|
|
|
694,548
|
|
|
|
|
|
|
|
|
|
|
VAPOTHERM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
|
2017
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(42,468
|
)
|
|
$
|
(31,005
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
2,167
|
|
|
|
1,534
|
|
Loss on extinguishment of debt
|
|
|
2,842
|
|
|
|
-
|
|
Stock-based compensation expense
|
|
|
502
|
|
|
|
249
|
|
Loss on disposal of fixed assets
|
|
|
511
|
|
|
|
388
|
|
Allowance for doubtful accounts
|
|
|
273
|
|
|
|
(389
|
)
|
Amortization of discount on debt
|
|
|
123
|
|
|
|
158
|
|
Change in fair value of warrants
|
|
|
(553
|
)
|
|
|
(91
|
)
|
Decrease in restricted cash
|
|
|
53
|
|
|
|
129
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(152
|
)
|
|
|
(682
|
)
|
Inventory
|
|
|
(2,252
|
)
|
|
|
(3,254
|
)
|
Prepaid expenses and other assets
|
|
|
(443
|
)
|
|
|
(497
|
)
|
Accounts payable
|
|
|
896
|
|
|
|
285
|
|
Contract liability
|
|
|
15
|
|
|
|
1
|
|
Accrued expenses and other liabilities
|
|
|
(2,034
|
)
|
|
|
3,928
|
|
Net cash used in operating activities
|
|
|
(40,520
|
)
|
|
|
(29,246
|
)
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchases of fixed assets
|
|
|
(5,180
|
)
|
|
|
(5,947
|
)
|
Net cash used in investing activities
|
|
|
(5,180
|
)
|
|
|
(5,947
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance of redeemable convertible preferred
stock, net
|
|
|
9,919
|
|
|
|
44,877
|
|
Proceeds from initial public offering of common stock, net of
commissions and underwriting discounts
|
|
|
57,394
|
|
|
|
-
|
|
Proceeds on loans
|
|
|
29,420
|
|
|
|
9,979
|
|
Short term line of credit
|
|
|
143
|
|
|
|
530
|
|
Repayment of loans payable
|
|
|
(20,000
|
)
|
|
|
-
|
|
Proceeds from exercise of stock options and purchase of
restricted stock
|
|
|
539
|
|
|
|
469
|
|
Net cash provided by financing activities
|
|
|
77,415
|
|
|
|
55,855
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
31,715
|
|
|
|
20,662
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
26,508
|
|
|
|
5,846
|
|
End of year
|
|
$
|
58,223
|
|
|
$
|
26,508
|
|
Supplemental disclosures of cash flow information
|
|
|
|
|
|
|
|
|
Interest paid during the period
|
|
$
|
3,028
|
|
|
$
|
2,191
|
|
Fixed asset purchases in accrued expenses at period end
|
|
$
|
21
|
|
|
$
|
225
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
The following tables contain a reconciliation of net loss to Adjusted
EBITDA for the three and twelve months ended December 31, 2018 and 2017,
respectively.
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
Amount
|
|
|
Change
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
|
(in thousands, except percentages)
|
|
Net loss
|
|
$
|
(12,877
|
)
|
|
$
|
(9,031
|
)
|
|
$
|
(3,846
|
)
|
|
|
-42.6
|
%
|
Interest expense, net
|
|
|
945
|
|
|
|
621
|
|
|
|
324
|
|
|
|
-52.2
|
%
|
Depreciation and amortization
|
|
|
606
|
|
|
|
443
|
|
|
|
163
|
|
|
|
-36.8
|
%
|
EBITDA
|
|
$
|
(11,326
|
)
|
|
$
|
(7,967
|
)
|
|
$
|
(3,359
|
)
|
|
|
-42.1
|
%
|
Foreign currency
|
|
|
(2
|
)
|
|
|
(199
|
)
|
|
|
197
|
|
|
|
-99.0
|
%
|
Loss on extinguishment of debt
|
|
|
1,000
|
|
|
|
-
|
|
|
|
1,000
|
|
|
n/m
|
|
Change in fair value of warrant liabilities
|
|
|
-
|
|
|
|
(73
|
)
|
|
|
73
|
|
|
n/m
|
|
Stock based compensation
|
|
|
135
|
|
|
|
75
|
|
|
|
60
|
|
|
|
80.0
|
%
|
Adjusted EBITDA
|
|
$
|
(10,193
|
)
|
|
$
|
(8,164
|
)
|
|
$
|
(2,029
|
)
|
|
|
-24.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
Amount
|
|
|
Change
|
|
|
|
2018
|
|
|
2017
|
|
|
$
|
|
|
%
|
|
|
|
(in thousands, except percentages)
|
|
Net loss
|
|
$
|
(42,468
|
)
|
|
$
|
(31,005
|
)
|
|
$
|
(11,463
|
)
|
|
|
-37.0
|
%
|
Interest expense, net
|
|
|
2,946
|
|
|
|
2,229
|
|
|
|
717
|
|
|
|
-32.2
|
%
|
Depreciation and amortization
|
|
|
2,167
|
|
|
|
1,534
|
|
|
|
633
|
|
|
|
-41.3
|
%
|
EBITDA
|
|
$
|
(37,355
|
)
|
|
$
|
(27,242
|
)
|
|
$
|
(10,113
|
)
|
|
|
-37.1
|
%
|
Foreign currency
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
n/m
|
|
Loss on extinguishment of debt
|
|
|
2,842
|
|
|
|
-
|
|
|
|
2,842
|
|
|
n/m
|
|
Change in fair value of warrant liabilities
|
|
|
(553
|
)
|
|
|
(91
|
)
|
|
|
(462
|
)
|
|
|
507.7
|
%
|
Stock based compensation
|
|
|
502
|
|
|
|
249
|
|
|
|
253
|
|
|
|
101.6
|
%
|
Adjusted EBITDA
|
|
$
|
(34,564
|
)
|
|
$
|
(27,088
|
)
|
|
$
|
(7,476
|
)
|
|
|
-27.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190312005888/en/
Investor Relations Contacts:
Mark Klausner or Mike Vallie,
Westwicke, an ICR Company, ir@vtherm.com,
+1 (603) 658-0011
Source: Vapotherm, Inc.