TORONTO - Venus Concept Inc. (NASDAQ: NASDAQ:VERO), a prominent medical aesthetic technology provider, has announced a new strategic partnership with Skin Laundry Holdings, Inc., a leader in the skincare clinic industry. This collaboration involves the supply of Venus Viva devices, equipped with Venus Concept’s (MP)2 NanoFractional RF Technology, to Skin Laundry locations across the United States.
Skin Laundry is integrating the Venus Viva devices to offer skin resurfacing and tightening procedures. These devices employ a combination of Radio Frequency (RF) and Pulsed Electro Magnetic Fields (PEMF) to stimulate collagen and elastin production, with over 9,000 systems already in use globally.
The initial order from Skin Laundry includes the Viva devices and the consumable Viva tips needed to perform the treatments. Skin Laundry's decision to adopt Venus Concept’s technology for its services is a significant endorsement of the efficacy and safety of these aesthetic solutions.
Dr. Hemanth Varghese, President and Chief Operating Officer of Venus Concept, expressed confidence in the partnership, noting that Skin Laundry’s initial order reflects the company's capability to support aesthetic service providers of all sizes with high-quality devices and customer service. He underscored the mutual commitment to meeting the growing needs of customers in the U.S. and globally.
Venus Concept's diverse product portfolio spans minimally invasive and non-invasive medical aesthetic and hair restoration technologies. The company has a presence in over 60 countries and direct markets in 12 regions. Its range of aesthetic device platforms includes the Venus Versa, Venus Legacy, Venus Velocity, among others, and hair restoration systems such as NeoGraft® and the ARTAS iX® Robotic Hair Restoration system.
This partnership announcement is based on a press release statement.
In other recent news, Venus Concept Inc. has made significant strides in its business operations. The medical aesthetic technology leader has secured a Health Canada license for its Venus Versa Pro system, facilitating the company's entry into the Canadian market with its multifaceted aesthetic platform. This expansion reflects Venus Concept's ongoing efforts to grow its product offerings globally.
Additionally, Venus Concept has made a strategic move to bolster its financial health by converting $35 million of its senior debt into equity with Madryn Asset Management, LP. This action has reduced the company's debt from $76.7 million to approximately $45.4 million, marking a milestone towards streamlining the company's capital structure.
On the earnings front, Venus Concept reported a 15% year-over-year decline in total revenue, amounting to $17.5 million in Q1 2024. Despite the decline, the company surpassed revenue expectations, aided by a 30% sequential increase in international revenue and a focus on cash system sales. However, the company reported a net loss of $9.8 million, despite reducing cash used in operations by 51% year-over-year.
These recent developments underscore Venus Concept's commitment to financial restructuring and market expansion.
InvestingPro Insights
As Venus Concept Inc. (NASDAQ: VERO) embarks on its strategic partnership with Skin Laundry Holdings, Inc., it's important to consider the company's financial health and market performance, which can be indicative of its ability to sustain and grow such collaborations. According to InvestingPro data, Venus Concept currently holds a market capitalization of $6.79 million, with a notably high gross profit margin of 68.37% over the last twelve months as of Q1 2024. Despite this strong margin, the company's revenue has declined by 21.7% over the same period, reflecting potential challenges in market conditions or operational efficiency.
InvestingPro Tips reveal that Venus Concept operates with a significant debt burden and is quickly burning through cash, which could impact its long-term sustainability. Additionally, the company's stock has taken a significant hit over the last week, with a 21.34% drop in price total return. However, it's worth noting that there has been a strong return of 50.72% over the last month, suggesting some investor confidence or positive market reactions to recent developments. Analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. Nevertheless, the company's liquid assets exceed short-term obligations, which could provide some financial flexibility in the near term.
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