Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Apyx Medical Corp (APYX, Financial) reported stronger-than-expected sales in its advanced energy segment, with a 30% growth compared to the sequential third quarter of 2024.
- The company has successfully executed a direct-to-consumer marketing strategy, surpassing media placement goals by 187% and exceeding impressions goals by over 13,000%.
- Apyx Medical Corp (APYX) has submitted its 510(K) for the AYON Body Contouring System to the FDA ahead of schedule, positioning it as a game changer for surgeons.
- The restructuring program announced in November 2024 is expected to result in annualized future cost savings of approximately $4.3 million.
- The company strengthened its balance sheet by completing a registered direct offering with net proceeds of approximately $6.8 million and amending its credit agreement.
Negative Points
- Total revenue for the fourth quarter of 2024 decreased by 3% compared to the same period last year.
- The OEM segment sales decreased by 16% in the fourth quarter of 2024 compared to the previous year.
- International revenue decreased by 8% year over year, indicating challenges in markets outside the United States.
- Cash and cash equivalents decreased from $43.7 million as of December 31, 2023, to $31.7 million as of December 31, 2024.
- The company anticipates OEM revenue to decrease in 2025, returning to more normalized customer ordering and order fulfillment.
Q & A Highlights
Q: Can you confirm the expected gross margin for 2025?
A: Yes, we are projecting a gross margin of around 60% for 2025, similar to what we experienced in 2024. This is based on current trends in geographic, product, and segment mix. - Matthew Hill, Chief Financial Officer
Q: What impact does the AYON launch have on the 2025 guidance, and how will it be marketed to surgeons?
A: The AYON launch, moved up by 90 days, is not yet reflected in our guidance as we await FDA approval. We anticipate a soft launch in the second half of 2025. AYON will be marketed as a must-have for surgeons, with options for outright purchase or leasing, and special pricing for existing customers. - Charles Goodwin, President and Chief Executive Officer
Q: What changes were made to the direct-to-consumer (DTC) campaign, and how do you see it impacting 2025?
A: We revamped our DTC campaign in early 2024 with a new PR partner, leading to significant improvements in reach and engagement. The campaign focuses on the benefits of Renuvion for loose and lax skin post-GLP-1 weight loss, resonating well with consumers and influencers. We expect continued success in 2025. - Charles Goodwin, President and Chief Executive Officer
Q: How is the domestic market performing compared to international markets, and what can be applied globally?
A: The U.S. market is performing better due to early adoption of GLP-1 drugs. We expect similar trends globally as these drugs become more widespread, leading to increased demand for surgical solutions like Renuvion. - Charles Goodwin, President and Chief Executive Officer
Q: What is the status of Apyx One Console upgrades, and how does it relate to AYON?
A: The Apyx One Console is crucial for AYON, serving as its core. We are incentivizing upgrades by offering special pricing for existing customers. There is still a significant number of customers who need to upgrade to Apyx One. - Charles Goodwin, President and Chief Executive Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
