• Total Revenue: $14.2 million for Q4 2024, a decrease of 3% from $14.7 million in Q4 2023.
• Advanced Energy Segment Revenue: $12.1 million, flat year over year, but a 30% increase from Q3 2024.
• OEM Segment Sales: Decreased 16% or approximately $0.3 million compared to Q4 2023.
• Domestic Revenue: Increased 1% year over year to $10.6 million.
• International Revenue: Decreased 8% year over year to $3.7 million.
• Gross Profit: $9 million, up from $8.9 million in Q4 2023.
• Gross Profit Margin: 63.0% compared to 60.9% in Q4 2023.
• Operating Expenses: Decreased to $12 million from $14.7 million in Q4 2023.
• Net Loss: $4.6 million or $0.12 per share, compared to $9.6 million or $0.28 per share in Q4 2023.
• Adjusted EBITDA Loss: Decreased 53% to $2.2 million from $4.7 million in Q4 2023.
• Cash Used in Operating Activities: $2.9 million, up from $2.2 million in Q4 2023.
• Cash and Cash Equivalents: $31.7 million as of December 31, 2024, down from $43.7 million as of December 31, 2023.
• 2025 Revenue Guidance: Expected range of $47.6 million to $49.0 million.
• Advanced Energy Revenue Guidance: Expected range of $39.6 million to $41.0 million for 2025.
• OEM Revenue Guidance: Approximately $8 million for 2025.
• Expected Gross Margins for 2025: Approximately 60%.
• Operating Expenses Guidance for 2025: Not to exceed $40 million.

• Warning! GuruFocus has detected 4 Warning Signs with APYX.

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 (NASDAQ:APYX) 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 (NASDAQ: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.