Venus Concept Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenue was $15.0 million, a decrease of 14.8% from $17.6 million in Q3 2023. For the nine months ended September 30, 2024, revenue totaled $49.1 million, down 15.7% from $58.2 million in the prior year. The decline in revenue is attributed to tightening credit markets and inflationary pressures affecting the company's operations.

Gross profit for Q3 2024 was $9.9 million, down from $12.2 million in Q3 2023, resulting in a gross margin of 66.1%, compared to 69.2% in the previous year. For the nine-month period, gross profit decreased to $33.4 million from $40.1 million, with a gross margin of 68.1%, slightly lower than 68.9% in 2023.

Operating expenses for Q3 2024 were $17.1 million, a decrease from $18.9 million in Q3 2023. For the nine months, operating expenses totaled $53.9 million, down from $60.8 million in the same period last year. Despite the reduction in operating expenses, the company reported a net loss of $9.3 million for Q3 2024, compared to a loss of $9.0 million in Q3 2023. The nine-month net loss increased to $39.0 million from $25.9 million in the prior year.

The company’s cash and cash equivalents decreased to $4.5 million as of September 30, 2024, from $5.4 million at the end of 2023. Total liabilities were significantly reduced to $61.6 million from $107.1 million, primarily due to a decrease in long-term debt, which fell to $30.0 million from $70.8 million. The accumulated deficit increased to $300.9 million from $261.9 million at the end of 2023.

Strategically, Venus Concept launched the Venus Prime program in January 2024, replacing its legacy subscription model in North America. This program includes an upfront fee and a monthly payment schedule, aiming to enhance cash flow. The company is also evaluating strategic alternatives to maximize shareholder value, which may include financing, mergers, or asset sales.

The company continues to face challenges, including geopolitical disruptions affecting supply chains and ongoing inflationary pressures. As of September 30, 2024, Venus Concept operated directly in 12 international markets and plans to fund operations through existing cash, borrowings, and capital stock issuance until profitability is achieved.