Vapotherm Revenues Beat; 2Q Revenue Guidance >Consensus, Pulls FY20 Outlook

Vapotherm (NYSE: VAPO) reported Q1 EPS of ($0.66), $0.10 worse than the analyst estimate of ($0.56). Revenue for the quarter came in at $19.1 million versus the consensus estimate of $18.9 million.

Revenue for the first quarter of 2020 was $19.1 million, representing a 55.4% increase over the prior year period

• Worldwide installed base of Precision Flow Hi-VNI systems grew by 22.7% compared to the first quarter of 2019
• Gross margin was 48.2% or 610 basis points higher than gross margin of 42.1% in the first quarter of 2019

“We believe the first quarter of 2020 was transformational for Vapotherm as significant customer demand in both new and existing accounts due to COVID-19 materially increased the awareness of our Hi-VNI Technology for treating patients suffering from respiratory distress. In the first quarter, we significantly exceeded expectations for revenue, continued the rapid expansion of our worldwide installed base of Precision Flow systems, and improved our gross margin by 610 basis points over the prior year period despite strong head winds. I am especially proud of the effort of our operations team and suppliers as we dramatically increased production capacity to meet increased demand,” said Joe Army, President and CEO of Vapotherm. “The second quarter is off to a very strong start as we continue to see increased demand from our new and existing customers treating the respiratory distress experienced by many COVID-19 patients, allowing us to significantly increase our worldwide installed base. We intend to focus on managing our supply chain to support our increased production levels along with continuing to improve our gross margin and expanding our limited market release of the Oxygen Assist Module in the U.K. and potentially in certain European markets.”
GUIDANCE:
Vapotherm sees Q2 2020 revenue of $19-19.3 million, versus the consensus of $18.32 million.

• Preliminary unaudited revenue for the month ended April 30, 2020 is estimated to be between $19.0 million and $19.3 million
• Worldwide installed base of Precision Flow Hi-VNI systems grew by over 2,200 for the month ended April 30, 2020 compared to nearly 1,300 during the entire first quarter of 2020

Fiscal 2020 Outlook
As announced on April 13, 2020, Vapotherm has withdrawn its previously provided annual guidance for 2020 due to the inability to estimate the scope, duration, and impact of the COVID-19 pandemic and the full year effect on the Company’s operations and financial results. Vapotherm will continue to evaluate the impact of the COVID-19 pandemic on its operations and financial results and will provide additional information, to the extent practicable, during its next earnings release.
The preliminary financial information for the month ended April 30, 2020 presented in this press release is based on Vapotherm’s current expectations and may be adjusted as a result of, among other things, completion of customary quarterly review procedures.
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