Venus Concept Announces Preliminary Fourth Quarter and Fiscal Year 2019 Revenue Results; Introduces Fiscal Year 2020 Revenue ...
January 13 2020 - 6:00AM
Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, today
announced preliminary unaudited revenue results for the three
months and twelve months ended December 31, 2019 and introduced
revenue guidance expectations for the twelve months ended December
31, 2020. The Company notes that the GAAP revenue results provided
give effect to the business combination between Restoration
Robotics, Inc. and Venus Concept Ltd., which closed on November 7,
2019.
Preliminary Fourth Quarter 2019 Revenue
Summary:
- Preliminary total GAAP revenue for
the fourth quarter of 2019 is expected to be in the range of $31.3
million to $32.0 million, compared to total GAAP revenue of $28.6
million in fourth quarter 2018, an increase of 9% to 12%
year-over-year. The expected range of preliminary total GAAP
revenue for the fourth quarter of 2019 includes the anticipated
revenue of Venus Concept Inc. (formerly Restoration Robotics, Inc.)
from November 8, 2019 to December 31, 2019 in the range of
approximately $2.6 million to $2.7 million.
- Preliminary total revenue on a
pro-forma basis, giving effect to the merger as if it took place on
January 1, 2018, for the fourth quarter of 2019 is expected
to be in the range of $32.4 million to $33.3 million, compared to
pro-forma total revenue of $35.3 million in fourth quarter 2018, a
decrease of 6% to 8% year-over-year. Preliminary total revenue
results, on a pro-forma basis, for the fourth quarter of 2019 are
expected to be comprised of:
- Venus Concept Ltd. (legacy Venus
Concept) revenue in the range of $28.7 million to $29.3 million,
compared to $28.6 million in the fourth quarter of 2018, an
increase of approximately 0% to 2% year-over-year.
- Venus Concept Inc. (formerly
Restoration Robotics, Inc.) revenue in the range of $3.7 million to
$4.0 million, compared to $6.7 million in the fourth quarter of
2018, a decrease of approximately 41% to 44% year-over-year.
Preliminary Fiscal Year 2019 Revenue
Summary:
- Preliminary total GAAP revenue for
the twelve months ended December 31, 2019 is expected to be in the
range of $109.8 million to $110.6 million, compared to total GAAP
revenue of $102.6 million in 2018, an increase of 7% to 8%
year-over-year. The expected range of preliminary total GAAP
revenue for the twelve months ended December 31, 2019 includes the
anticipated revenue of Venus Concept Inc. (formerly Restoration
Robotics, Inc.) from November 8, 2019 to December 31, 2019 in the
range of approximately $2.6 million to $2.7 million.
- Preliminary total revenue on a
pro-forma basis, giving effect to the merger as if it took place on
January 1, 2018, for the twelve months ended December 31, 2019 is
expected to be in the range of $122.6 million to $123.5 million,
compared to pro-forma total revenue of $124.6 million in 2018, a
decrease of approximately 1% to 2% year-over-year. Preliminary
pro-forma total revenue results for the twelve months ended
December 31, 2019 are expected to be comprised of:
- Venus Concept Ltd. (legacy Venus
Concept) revenue in the range of $107.2 million to $107.9 million,
compared to $102.6 million in 2018, an increase of approximately 5%
year-over-year.
- Venus Concept Inc. (formerly
Restoration Robotics, Inc.) revenue in the range of $15.4 million
to $15.6 million, compared to $22.0 million in 2018, a decrease of
approximately 29% to 30% year-over-year.
Fiscal Year 2020 Revenue
Guidance:
- Total revenue for the twelve months
ended December 31, 2020 is expected to be in the range of $134.0
million to $140.0 million. The Company’s fiscal year 2020 revenue
guidance range represents projected growth of approximately 9% to
13% year-over-year as compared to the preliminary total revenue
range, on a pro-forma basis, of $122.6 million to $123.5 million
for the twelve months ended December 31, 2019.
“Venus Concept’s preliminary pro-forma fourth
quarter revenue performance is in-line with expectations, driven
primarily by low single-digit growth in the legacy Venus Concept
business, offset by the expected softer sales performance in the
former Restoration Robotics business compared to the prior year,”
said Domenic Serafino, Chief Executive Officer of Venus Concept.
“We continue to make notable progress on our integration efforts
following the closing of our merger with Restoration Robotics on
November 7, 2019 and we remain encouraged by the prospects of the
combined global commercial team beginning in 2020.”
Mr. Serafino continued: “We expect to drive
pro-forma sales growth in the range of 9% to 13% year-over-year in
2020, fueled by compelling new product introductions, like our
Venus Bliss, and improving adoption of the ARTAS® and ARTAS iX™
Robotic Hair Restoration Systems. We expect our 2020 growth to be
driven primarily by strong commercial execution across our team of
nearly 200 direct selling representatives around the world and by
implementing an enhanced go-to-market strategy for our robotic hair
restoration business. We also have a targeted a longer-term R&D
strategy focused on leveraging the potentially powerful combination
of Venus’ expertise in non-invasive energy-based technologies for
aesthetic applications and Restoration Robotics’ expertise in
robotic technology, 3D pre-operative planning and software.
Specifically, we believe there is a compelling opportunity to
introduce new, minimally invasive, robotic solutions for medical
aesthetic procedures that are only treated with invasive surgical
interventions today. We believe the new Venus Concept is well
positioned as a leading player in both the global minimally
invasive/non-invasive medical aesthetics market and the minimally
invasive surgical hair restoration market.”
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 technologies
and reach in over 60 countries and 29 direct markets. Venus Concept
focuses its product sales strategy on a subscription-based business
model in North America and in its well-established direct global
markets. Venus Concept’s product portfolio consists of aesthetic
device platforms, including Venus Versa, Venus Legacy, Venus
Velocity, Venus Fiore, Venus Viva, Venus Freeze Plus, and Venus
Bliss. Venus Concept’s hair restoration division includes NeoGraft,
an automated hair restoration system that facilitates the
harvesting of follicles during a FUE process and the ARTAS® and
ARTAS iX™ Robotic Hair Restoration Systems, which harvest
follicular units directly from the scalp and create recipient
implant sites using proprietary algorithms. Venus Concept has been
backed by leading healthcare industry growth equity investors
including EW Healthcare Partners (formerly Essex Woodlands),
HealthQuest Capital, Longitude Capital Management, and Aperture
Venture Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains “forward-looking”
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements including expected revenue, operating results and
other financial information, involve risks and uncertainties that
may cause results to differ materially from those set forth in the
statements. These statements are based on current plans, estimates
and projections, and therefore, you are cautioned not to place
undue reliance on them. No forward-looking statement can be
guaranteed, and actual results may differ materially from those
projected. Venus Concept undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except to the extent
required by law. Forward-looking statements are not historical
facts, but rather are based on current expectations, estimates,
assumptions and projections about our business and future financial
results, the medical device industry, and other legal, regulatory
and economic developments. We use words such as “anticipates,”
“believes,” “plans,” “expects,” “projects,” “future,” “intends,”
“may,” “should,” “could,” “estimates,” “predicts,” “potential,”
“continue,” “guidance,” and similar expressions which are intended
to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Actual
results could differ materially from the results contemplated by
these forward-looking statements. Material factors that could cause
actual results to differ materially from current expectations
include, without limitation, the following: the progress of the
commercialization, marketing and manufacturing capabilities for the
combined company’s products; the number of systems that are sold;
the success of the commercial launch of Venus Bliss; the
timing or likelihood of regulatory filings and approvals for
products; the expected synergies from the merger; our ability to
raise additional capital and the expected revenue for the combined
company. Venus Concept cannot give any assurances that the we
will achieve our expectations.
The foregoing list of factors is not exhaustive.
You should carefully consider the foregoing factors and the other
risks and uncertainties that affect the business of Venus Concept
described in the “Risk Factors” section contained in the
Registration Statement on Form S-4 and the prospectus and
definitive proxy statement contained therein for the merger of
Restoration Robotics and Venus and described in the “Risk Factors”
section of Restoration Robotics Annual Report on Form 10-K for the
year ended 2018 filed on March 20, 2019 and as amended on April 29,
2019, the Restoration Robotics’ Quarterly Report on Form 10-Q for
the quarter ended September 30, 2019 filed on November 14, 2019, as
well as any reports that Venus Concept may filed with the SEC in
the future. All forward-looking statements included in this press
release are based upon information available to Venus Concept as of
the date hereof, and Venus Concept assumes no obligation to update
or revise such forward-looking statements to reflect events or
circumstances that subsequently occur or of which Venus Concept
hereafter becomes aware.
Investor Relations Contact:
Westwicke Partners on behalf of Venus Concept
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
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