Vyome Holdings, Inc. Q4 FY2022 earnings call

• Growth pillars include a disciplined metrics-driven mindset, developing and launching new products/therapies, and gaining surgeon advocacy with a scientific advisory board.
• Significantly reduced operating expenses, with a 27.9% overall reduction in operational expenses from the first half to the second half of 2022, including a 48.9% reduction in sales and marketing expenses, 13.6% in G&A, and 30% in R&D.
• Launched redesigned calibration tube for bariatric procedures, expects to submit Lap-Band 2.0 for PMA supplement by Q2 2023, and advanced development of Diabetes Bloc-Stim Neuromodulation device.
• Moved call center in-house, improved marketing automation, and focused on lead conversion with new patient-centric website and content.
• Filed patent infringement complaint against Allurion Technologies, Inc. to protect intellectual property.

For the year ended December 31, 2022, revenue totaled $11.2 million, a contraction of 17.4% compared to 2021. Gross profit was $6.8 million, down from $8.3 million in 2021. U.S. revenue showed sequential growth in 2022, with first half U.S. revenue at $4.2 million and second half at $4.1 million, an increase of $900,000. Gross profit margin in 2022 was 60.5% compared to 61.4% in 2021, primarily impacted by a decrease in revenue, especially in the U.S. which has a higher gross profit margin.

• Believes they have sufficient cash on hand from recent financings to become profitable within the next 18 months.
• Expect to achieve profitability by continuing to partner with physician advocates and leveraging their product portfolio for obesity and metabolic disease treatment.

• Filed a patent infringement complaint against Allurion Technologies, Inc. in the U.S. District Court for the District of Delaware, with uncertainty around the outcome and potential impact on the company.

Q: Anthony Vendetti of Maxim asked about the 6-month waiting period for bariatric surgery, current conversion rates, and trends.

A: Paul Hickey said the waiting period varies by account, with a trend towards requiring less time, and conversion rates are improving as lead generation and nurturing systems are enhanced.

Q: Anthony asked about pros and cons of weight loss drugs.

A: Paul said weight loss drugs are bringing more people to consider weight loss options, with most surgeons believing long-term it will have a positive impact by bringing more people off the sidelines.

Q: Anthony asked about the economics of ReShapeCare.

A: Paul said ReShapeCare is a cash pay proposition, with reimbursement for health coaching pending, and it has different adoption rates among physicians, with potential for growth depending on reimbursement and employer programs.