Vapotherm Inc (VAPO) 10-Q Quarterly Report August 2021

Business Wire / -- Vapotherm, Inc. (NYSE: VAPO), (“Vapotherm” or the “Company”), a global medical technology company focused on the development and commercialization of its proprietary Vapotherm high velocity therapy^® products which are used to treat patients of all ages suffering from respiratory distress, today announced first quarter 2021 financial results.

First Quarter 2021 Summary

•

Revenue for the first quarter of 2021 was $32.3 million, representing a 69% increase over the prior year period

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Worldwide installed base of Precision Flow Hi-VNI systems grew by 73% compared to the first quarter of 2020

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Gross margin was 53.1% or 490 basis points higher than gross margin of 48.2% in the first quarter of 2020

“We were pleased with our performance during the first quarter,” said Joe Army, President and CEO of Vapotherm. “We grew our worldwide Installed Base, improved our gross margin by 490 basis points, and reduced our adjusted EBITDA loss to $5.2 million. For the rest of 2021, we will focus on educating our Customers on how to use High Velocity Therapy for hypercapnic Patients experiencing respiratory distress, growing the Installed Base, and launching our next generation technology platform, HVT 2.0.”

Results for the Three Months Ended March 31, 2021

The following table reflects the Company’s net revenue for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021					2020					Change
	(in thousands, except percentages)
	Amount		% of Revenue			Amount		% of Revenue			$		%
Revenue
Capital (product & lease revenue)	$	13,454		41.6	%	$	6,034		31.6	%	$	7,420		123.0	%
Disposables		17,156		53.1	%		12,430		65.0	%		4,726		38.0	%
Service and other		1,698		5.3	%		651		3.4	%		1,047		160.8	%
Total net revenue	$	32,308		100.0	%	$	19,115		100.0	%	$	13,193		69.0	%

Net revenue for the first quarter of 2021 was $32.3 million, a 69% increase over the first quarter of 2020. Total capital equipment revenue, including product and lease revenue, increased 123% over the first quarter of 2020. This increase was primarily due to increased demand for our Precision Flow units worldwide due to the COVID-19 pandemic and increased average selling prices of both capital and disposables in the U.S. Total disposable revenue increased 38% over the first quarter of 2020, primarily driven by an increase in the worldwide installed base of Precision Flow units and increased demand for our products to treat the respiratory distress experienced by many COVID-19 patients in international markets.

Revenue information by geography is summarized as follows:

	Three Months Ended March 31,
	2021					2020					Change
	(in thousands, except percentages)
	Amount		% of Revenue			Amount		% of Revenue			$		%
United States	$	22,069		68.3	%	$	14,341		75.0	%	$	7,728		53.9	%
International		10,239		31.7	%		4,774		25.0	%		5,465		114.5	%
Total net revenue	$	32,308		100.0	%	$	19,115		100.0	%	$	13,193		69.0	%

U.S. and International revenue growth in the first quarter of 2021 was driven by increased worldwide demand for our Precision Flow units due to COVID-19 and an increase in our disposable revenue due to an increase in our worldwide installed base of

The following information was filed by Vapotherm Inc (VAPO) on Wednesday, May 5, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Vapotherm Inc's 10-Q Quarterly Report:

Financial - Earnings Highlight
Second quarter 2021 gross profit was also negatively impacted by geography mix with lower gross profit margins realized on distributor sales, partially offset by reduced supplier freight and expediting fees.

Revenue - Product Highlight
We have invested heavily in our sales and marketing function by increasing the number of sales representatives and clinical educators to facilitate adoption and increase utilization of our High Velocity Therapy products and expanded our digital marketing initiatives and medical education programs, including our Vapotherm Academy which was instrumental during the pandemic and used to train more than 30,000 caregivers during 2020 and the first half of 2021.
Financial - Expense Highlight
The increase in general and administrative expenses for both comparison periods was primarily due to increases in employee-related expenses, stock-based compensation, audit and compliance related costs, changes in the value of contingent consideration, and increased insurance, legal, rent and software maintenance costs, partially offset by a reduction in reserves for uncollectible accounts receivable.
Revenue - Product Highlight
Also, worldwide precautionary measures taken to reduce the spread of COVID-19 infections have impacted, and may continue to impact, the incidence of flu and flu-related illnesses, which have negatively impacted and could continue to negatively impact our future revenue.
Financial - Expense Highlight
The increase in research and development expenses for both comparison periods was primarily due to increased product development costs associated with the development of our future generation High Velocity systems and increased employee-related expenses and stock-based compensation.
Financial - Earnings
Gross profit was negatively impacted...Read more
Revenue - Product
We intend to continue to...Read more
Financial - Expense
The decrease in other expense,...Read more
Financial - Expense
Other Expense, Net Other expense,...Read more
Financial - Debt
The events of default under...Read more
Financial - Expense
Net cash provided by financing...Read more
Revenue - Product
Disposable revenue increased 17.0% in...Read more
Financial - Expense
Other expense, net decreased $1.0...Read more
Financial - Expense
Additionally, the increase in research...Read more
Revenue - Product
However, due to demand for...Read more
Revenue - Geography
We recently received a positive...Read more
Revenue - Product
Both the United States and...Read more
Revenue - Product
International net revenue growth was...Read more
Revenue - Product
The decrease in net revenue...Read more
Financial - Debt
Any debt financing or additional...Read more
Revenue - Product
The increase in service and...Read more
Revenue - Product
The increase in service and...Read more
Revenue - Product
We have devoted the majority...Read more
Financial - Expense
General and Administrative Expenses General...Read more
Other - Other
Critical accounting policies are defined...Read more
Revenue - Product
Net revenue generated in our...Read more
Revenue - Product
Our business was significantly transformed...Read more
Revenue - Product
Sales and Marketing Expenses Sales...Read more
Other - Other
As of June 30, 2021,...Read more
Financial - Expense
General and administrative expenses increased...Read more
Revenue - Product
As the COVID-19 pandemic winds...Read more
Financial - Cash Flow
The following table presents a...Read more
Other - Other
In February 2021, Critical Care...Read more
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This exposed a significant number...Read more
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In addition, we employ field-based...Read more
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The extent to which the...Read more
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We believe this is important...Read more
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Research and development expenses increased...Read more
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Availability under the Revolving Facility...Read more
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Sales and marketing expenses decreased...Read more
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As a percentage of revenue,...Read more
Revenue - Product
On December 20, 2019, we...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Vapotherm Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: VAPO
CIK: 1253176
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-21-042651
Submitted to the SEC: Mon Aug 09 2021 4:17:10 PM EST
Accepted by the SEC: Mon Aug 09 2021
Period: Wednesday, June 30, 2021
Industry: Surgical And Medical Instruments And Apparatus