Venus Concept Reports 15.1% Revenue Decline and $47M Net Loss for Fiscal Year 2024

Venus Concept Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $64.8 million, down 15.1% from $76.4 million in 2023. The company experienced a net loss of $47.0 million, compared to a loss of $37.2 million in the previous year. The decrease in revenue was primarily attributed to tighter third-party lending practices that negatively impacted capital equipment sales, as well as an accelerated exit from unprofitable direct markets. Despite these challenges, the company noted a reduction in cash used in operations, which was $11.1 million for 2024, a 13.9% decrease from the prior year.

In terms of strategic developments, Venus Concept launched its new Venus Prime program in January 2024, which is designed to replace its legacy subscription model with a structured in-house financing program. This initiative aims to improve cash generation and reduce exposure to defaults. The company also reported a shift in its revenue mix, with approximately 26% of system revenues derived from internal financing programs in 2024, down from 33% in 2023. The total number of systems delivered decreased to 1,049 in 2024 from 1,170 in 2023, reflecting the impact of the company's strategic focus on cash sales over financing arrangements.

Operationally, Venus Concept has expanded its international presence, operating directly in 12 markets and marketing its technologies in over 60 countries. The company reported a significant reduction in its allowance for expected credit losses, which stood at $3.8 million as of December 31, 2024, down from $7.4 million in the previous year. This reduction indicates a focus on improving credit quality among customers. The company also maintained a workforce of 292 employees as of the end of 2024, with a direct sales and marketing team of approximately 86 employees.

Looking ahead, Venus Concept faces ongoing challenges due to macroeconomic conditions, including inflation and rising interest rates, which have created uncertainty in the financial markets. The company is currently evaluating strategic alternatives to enhance shareholder value, although there is no set timetable for this process. Management has indicated that achieving profitability and securing additional financing will be critical for the company's future operations. The company had cash and cash equivalents of $4.3 million as of December 31, 2024, and plans to fund operations through a combination of cash on hand, borrowings, and capital stock issuances until it reaches a sustainable revenue level.