Vapotherm Inc (VAPO) SEC Filing 10-Q Quarterly report for the period ending Tuesday, June 30, 2020

Exhibit 99.1

Vapotherm Reports Second Quarter 2020 Financial Results

Second Quarter 2020 Revenue of $35.2 Million Reflects 193.3% Increase Over Prior Year

EXETER, New Hampshire, August 4, 2020 /

Second Quarter 2020 Summary

“The second quarter of 2020 was another transformational quarter for Vapotherm as we continued to see significant customer demand in both new and existing accounts due to COVID-19 and the increased awareness of our high velocity therapy for treating patients suffering from respiratory distress. In the second quarter, we nearly tripled our revenue on a year over year basis, continued the rapid expansion of our worldwide installed base of Precision Flow systems, and took steps to expand our capital equipment manufacturing capabilities in response to the increase in demand for the company’s Precision Flow systems. We also improved our gross margin by 460 basis points despite strong headwinds from higher labor costs and increased supplier freight and expediting fees incurred to meet the increase in production capacity,” said Joe Army, President and CEO of Vapotherm. “Our focus in the third quarter and balance of the year will be meeting the demand of our new and existing accounts, continuing to grow our worldwide installed base, managing our supply chain to support increased production levels, continuing to improve our gross margin, and marching towards a full market release of the Oxygen Assist Module in the U.K. and, potentially, other European markets in the fourth quarter.”

Results for the Three Months Ended June 30, 2020

The following table reflects the Company’s revenue for the three months ended June 30, 2020 and 2019:

(unaudited and in thousands, except percentages)

Revenue for the second quarter of 2020 was $35.2 million, a 193.3% increase over the second quarter of 2019. Total capital equipment revenue, including product sales, lease revenue, and other lease revenue increased 632.3% over the second quarter of 2019. This increase was primarily as a result of increased sales of our Precision Flow units as a result of increased demand related to the COVID-19 pandemic, and increased average selling prices in both the United States and International markets. Total disposable revenue increased 54.3% year over year, primarily driven by an increase in the worldwide installed base of Precision Flow units and increased utilization to treat the respiratory distress experienced by many COVID-19 patients.