TORONTO, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept" or the "Company") (NASDAQ:VERO), a global medical aesthetic technology leader, announced financial results for the three and six months ended June 30, 2024. Second Quarter 2024 Summary & Recent Progress: Company continues to execute against Transformational Plan Cash used in operations of $1.3 million, down 37% year-over-year and down 54% quarter-over-quarter Total revenue of $16.6 million, down 17% year-over-year, but in-line with second quarter estimate of at "least $16.5 million". Gross margin up 62 basis points year-over-year to 71.5%, combined with a 13% decrease in operating expenses year-over-year, drives 3% reduction in GAAP operating loss year-over-year Adjusted EBITDA loss of $4.1 million, up 4% year-over-year, despite 17% revenue decline On May 28, 2024, the Company announced a $35 million debt-to-equity exchange transaction, significantly reducing the Company's debt balance and bringing the Company back into compliance with the Nasdaq Minimum Equity Requirement. On June 3, 2024, the Company announced that it received a medical device license issued by Health Canada to market the Venus Versa Pro system in Canada. On June 17, 2024, the Company announced that that it has entered a new strategic skin resurfacing and skin tightening device supply arrangement with Skin Laundry Holdings, Inc. On June 27, 2024, the Company announced the successful completion of its NEXThetics events held across several major cities in North America. NEXThetics events bring together Venus Concept's network of aesthetic leaders and practitioners and have seen a significant increase in popularity and attendance. Management Commentary: "Second quarter revenue results met the expectations we outlined on our first quarter report," said Rajiv De Silva, Chief Executive Officer of Venus Concept. "Aesthetic capital equipment sales continue to be challenged by macroeconomic headwinds and as expected, our revenue results outside the U.S. continue to be impacted by the strategic initiatives to exit certain unprofitable direct market. However, we importantly continue to see evidence that our efforts to reposition the business over the last eighteen months have been proving successful. We are enhancing our cash flow profile – as evidenced by the 47% reduction year-over-year in cash used in operations over the first six months of 2024 - and remain focused on enhancing our balance sheet condition and enhancing the Company's foundation to support long-term, sustainable, profitability and growth in the future." Second Quarter 2024 Financial Results:     Three Months Ended June 30,           2024     2023           (dollars in thousands)       Revenues by region:                     United States   $ 9,280     $ 9,757       International     7,302       10,318       Total revenue   $ 16,582     $ 20,075           Three Months Ended June 30,                       2024     2023     Change   (in thousands, except percentages)   $     % of Total     $     % of Total     $     %   Revenues by product:                                                 Venus Prime / Subscription—Systems   $ 4,517     27.2     $ 4,311       21.5     $ 206       4.8   Products—Systems     8,588     51.8       12,313       61.3       (3,725 )     (30.3 ) Products—Other     2,647     16.0       2,586       12.9       61       2.4   Services     830     5.0       865       4.3       (35 )     (4.0 ) Total   $ 16,582     100.0     $ 20,075       100.0     $ (3,493 )     (17.4 ) Total revenue for the second quarter of 2024 decreased $3.5 million, or 17%, to $16.6 million, compared to the second quarter of 2023. The decrease in total revenue, by region, was driven by a 29% decrease year-over-year in international revenue and a 5% decrease year-over-year in United States revenue. The decrease in total revenue, by product category, was driven by a 30% decrease in products – systems revenue and a 4% decrease in services revenue, offset partially by a 5% increase in lease revenue and a 2% increase in products - other revenue. The percentage of total systems revenue derived from the Company's internal lease programs (Venus Prime and our legacy subscription model) was approximately 34% in the second quarter of 2024, compared to 26% in the prior year period. Gross profit for the second quarter of 2024 decreased $2.4 million, or 17%, to $11.8 million compared to the second quarter of 2023. The change in gross profit was primarily due to a decrease in revenue in our international markets driven by the accelerated exit from unprofitable direct markets and the effects of tighter third-party lending practices which negatively impacted capital equipment sales in both the U.S. and international markets. Gross margin was 71.5% of revenue, compared to 70.8% of revenue for the second quarter of 2023. Operating expenses for the second quarter of 2024 decreased $2.5 million, or 13%, to $17.4 million, compared to the second quarter of 2023. The change in total operating expenses was driven by a decrease of $1.3 million, or 16%, in selling and marketing expenses, a decrease of $1.0 million, or 10%, in general and administrative expenses and a decrease of $0.2 million, or 12%, in research and development expenses. Second quarter of 2024 general and administrative expenses included approximately $0.2 million of costs related to restructuring activities designed to improve the Company's operations and cost structure. Operating loss for the second quarter of 2024 was $5.6 million, compared to operating loss of $5.8 million for the second quarter of 2023. Net loss attributable to stockholders for the second quarter of 2024 was $20.0 million, or $3.05 per share, compared to net loss of $7.4 million, or $1.35 per share for the second quarter of 2023. Second quarter net loss attributable to stockholders includes a pre-tax loss on debt extinguishment of $10.9 million related to the debt-to-equity exchange transaction. Adjusted EBITDA loss for the second quarter of 2024 was $4.1 million, compared to adjusted EBITDA loss of $4.0 million for the second quarter of 2023. As of June 30, 2024, the Company had cash and cash equivalents of $5.7 million and total debt obligations of approximately $46.0 million, compared to $5.4 million and $74.9 million, respectively, as of December 31, 2023. Fiscal Year 2024 Financial Outlook: Given the Company's active dialogue with existing lenders and investors and the ongoing evaluation of strategic alternatives with various interested parties to maximize shareholder value, the Company is not providing full year 2024 financial guidance at this time. The Company expects total revenue for the three months ending September 30, 2024 of at least $17.0 million, representing a 3% decline year-over-year and a 3% increase quarter-over-quarter. Conference Call Details: Management will host a conference call at 8:00 a.m. Eastern Time on August 13, 2024 to discuss the results of the quarter with a question-and-answer session. Those who would like to participate may dial 877-407-2991 (201-389-0925 for international callers) and provide access code 13747737. A live webcast of the call will also be provided on the investor relations section of the Company's website at ir.venusconcept.com. For those unable to participate, a replay of the call will be available for two weeks at: 877-660-6853 (201-612-7415 for international callers); access code 13747737. The webcast will be archived at ir.venusconcept.com. About Venus Concept Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reach in over 60 countries and 10 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Versa Pro, Venus Legacy, Venus Velocity, Venus Viva, Venus Glow, Venus Bliss, Venus Bliss MAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors, including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations. Cautionary Statement Regarding Forward-Looking Statements This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as "anticipates," "believes," "plans," "expects," "projects," "future," "intends," "may," "should," "could," "estimates," "predicts," "potential," "continue," "guidance," and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements include, but are not limited to, but are not limited to, statements about our financial performance and metrics; the growth in demand for our systems and other products; the efficacy of the restructuring plan; the identification and efficacy of strategic alternatives to maximize shareholder value; the reduction in our cash burn; and the continued implementation of turnaround plans, including debt restructurings and financings. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business and the industry in which the Company operates and management's beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. As a result, any or all of our forward-looking statements in this communication may turn out to be inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part II Item 1A—"Risk Factors" in our Quarterly Reports on Form 10-Q and Part I Item 1A—"Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to us as of the date of this communication. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.     Venus Concept Inc.Condensed Consolidated Balance Sheets(In thousands of U.S. dollars, except share and per share data)           June 30,     December 31,       2024     2023   ASSETS                 CURRENT ASSETS:                 Cash and cash equivalents   $ 5,732     $ 5,396   Accounts receivable, net of allowance of $4,161 and $7,415 as of June 30, 2024, and December 31, 2023, respectively     24,584       29,151   Inventories     19,782       23,072   Prepaid expenses     1,009       1,298   Advances to suppliers     4,540       5,604   Other current assets     1,256       1,925   Total current assets     56,903       66,446   LONG-TERM ASSETS:                 Long-term receivables, net     9,479       11,318   Deferred tax assets     1,195       1,032   Severance pay funds     421       573   Property and equipment, net     1,126       1,322   Operating right-of-use assets, net     3,907       4,517   Intangible assets     6,719       8,446   Total long-term assets     22,847       27,208   TOTAL ASSETS   $ 79,750     $