Apyx Medical Corp (APYX) Reports 31% Revenue Growth in Q3; Updates Full Year Outlook
Q3 total revenue increased by 31% year-over-year to $12.0 million.
Advanced Energy segment revenue up 39% year-over-year.
Net loss attributable to stockholders decreased by 20% year-over-year.
Full year 2023 revenue guidance adjusted to $53.0 million to $54.0 million.
On November 9, 2023, Apyx Medical Corp (NASDAQ:APYX) released its financial results for the third quarter ended September 30, 2023, showcasing significant growth in revenue and a reduction in net loss. The company, known for its Renuvion technology, also updated its financial outlook for the full year 2023.
Financial Performance and Challenges
Apyx Medical Corp (NASDAQ:APYX) reported a total revenue of $12.0 million in Q3, marking a 31% increase compared to the same period last year. The Advanced Energy segment, primarily driven by global sales of generators and handpieces, saw a remarkable 39% increase in revenue. OEM revenue also experienced growth, albeit at a more modest rate of 5%. Despite these gains, the company faced challenges, including stronger-than-anticipated seasonality and surgeon reticence to purchase capital equipment, which affected the Advanced Energy segment's revenue performance.
Financial Achievements and Updated Outlook
Net loss attributable to stockholders improved, decreasing by 20% year-over-year to $4.6 million. Adjusted EBITDA loss also saw a reduction of 21% compared to the previous year. Apyx Medical Corp (NASDAQ:APYX) has updated its full year 2023 financial outlook, now expecting total revenue to be between $53.0 million and $54.0 million, which represents a growth of approximately 19% to 21% year-over-year.
Income Statement and Balance Sheet Highlights
The company's gross profit for Q3 increased by 39% year-over-year to $8.0 million, with a gross profit margin of 66.6%, up from 63.2% in the prior year. Operating expenses rose by 9% to $12.6 million, driven by increases in salaries, selling, general and administrative expenses, and research and development costs. The net loss per share for Q3 was $0.13, an improvement from $0.17 per share in the prior year period.
Management Commentary
We delivered Advanced Energy revenue growth in the third quarter of 39% year-over-year, fueled primarily by global sales of our generators, which increased by more than 65% both in the U.S. and internationally, along with significant contributions from handpiece sales as well, said Charlie Goodwin, President and Chief Executive Officer. We are committed to achieving our stated expectations for 2023 by executing our growth strategy in the fourth quarter.
Strategic Financial Moves
Subsequent to the quarter's end, Apyx Medical Corp (NASDAQ:APYX) secured a new, five-year credit agreement with Perceptive Credit Holdings IV, LP, providing a facility of up to $45.0 million. This financial maneuver is aimed at strengthening the company's balance sheet and enhancing financial flexibility.
Operational and Segment Performance
Domestic revenue increased by 23.7% while international revenue saw a significant jump of 57.0% year-over-year. The Advanced Energy segment's growth was primarily attributed to the Apyx One Console's domestic sales and international generator and handpiece sales. The OEM segment's growth was driven by increased sales volume to existing customers.
Conference Call and Investor Relations
Apyx Medical Corp (NASDAQ:APYX) hosted a conference call on November 9, 2023, to discuss the quarterly results and answer questions. The call was accessible by phone and via a live webcast on the company's website. A replay of the call is available for two weeks post the event.
For more detailed information on Apyx Medical Corp (NASDAQ:APYX)'s financial performance and the full earnings report, investors and interested parties are encouraged to visit the Apyx Medical Corp website.
Explore the complete 8-K earnings release (here) from Apyx Medical Corp for further details.
This article first appeared on GuruFocus.
