Vivos Therapeutics, Inc. Q3 FY2024 earnings call

• Financial results review: Third quarter 2024 total revenue up 17% from 2023, nine-month revenue up 7% from 2023. - FDA clearances: Important for credibility and revenue growth, including pediatric clearance for treating moderate to severe OSA in children ages 6 to 17. - Marketing and outreach: Hiring new marketing firms and personnel, creating multimedia content to reach healthcare professionals and patients. - New sales and distribution alliance model: Designed to deliver higher revenue and gross profit, initial phase with Rivas Health in Colorado, expanding to additional Denver area locations, expecting top line revenues to build from the fourth quarter.

Third quarter 2024 total revenue was $3.9 million, compared to $3.3 million in the third quarter of 2023, a 17% increase. Product revenue increased by approximately $0.5 million due to higher sales of Vivos appliances and guides and lower discounts on Vivos appliances, and service revenue increased by $100,000. For the nine months ended September 30, 2024, total revenue was $11.3 million, compared to $10.6 million in the comparable period in 2023, an increase of approximately 7%. In the third quarter of 2024, 5 VIPs were enrolled with $900,000 in revenue, a 6% decrease compared to the third quarter of 2023. Sold 1,954 oral appliance arches during the third quarter of 2024 for a total of $2 million, a 34% increase in revenue compared to the third quarter of 2023. For nine months ended September 30, 2024, sold 5,993 oral appliance arches for a total of $5.6 million, a 17% increase in revenue compared to the same period in 2023.

• Fourth quarter 2024 will be the first full quarter of operations under the new model, expecting revenue growth. - Anticipate top line revenues to continue building as early as the fourth quarter of 2024 and significantly grow in 2025. - With 100 OSA patients per month under the new model, expect nearly $8 million annually in top line revenues.

• Actual results may differ materially from forward-looking statements due to significant known and unknown risks, including factors in Vivos' filings with the SEC such as market, competition, and regulatory risks.

Q: Could you tell us more about the new marketing model at the sleep clinic and why you're confident to expand?

A: The new model had high conversion rates, patient acceptance, and provider enthusiasm during the pilot. We're expanding as the team executed well, doctors and staff are trained, and we're turning on the spigot more heavily at new locations.

Q: How do you roll in the pediatric population with recent FDA clearance?

A: There's cross pollination within families, and we're educating medical professionals and using social media and digital marketing to get the message out about pediatric OSA treatment.

Q: How should we think about fourth quarter sequentially from third quarter?

A: It's a transition quarter as we replace one source of revenue with another, but expect to overcome losses and see growth under the new strategic model.

Q: What about VIP revenue in the future?

A: VIP enrollment revenue will roll out over the next 12 months from the contract liability on the balance sheet, recognized over the customer life which is over two years.

Q: When will you start venturing out geographically with the new model?

A: We're already actively engaged in laying the groundwork for geographic expansion using telemedicine and national networks, and stay tuned for updates.