Apyx Medical (APYX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 10–10.5% year-over-year to $12.1 million, reflecting ongoing challenges in the cosmetic surgery market and macroeconomic uncertainty.

• Advanced Energy sales fell 16.7–17% year-over-year, while OEM sales grew 29%, exceeding expectations.

• Handpiece sales grew over 20% year-over-year globally, offsetting some generator sales weakness.

• Net loss attributable to stockholders was $6.6 million ($0.19/share), up from $1 million ($0.03/share) year-over-year, impacted by the absence of a prior year gain on facility sale-leaseback.

• Strategic review underway to enhance growth and shareholder value, with new Chairman appointed.

Financial highlights

• Gross profit decreased 19% to $7.5 million; gross margin dropped to 61.7% from 68.4% year-over-year.

• Operating expenses decreased 1% to $13 million, mainly due to lower SG&A and salaries.

• Adjusted EBITDA loss increased to $4.3 million from $1.6 million year-over-year.

• Cash and equivalents stood at $32.7 million as of June 30, 2024, down from $43.7 million at year-end 2023.

• Working capital at June 30, 2024 was $46.0 million, compared to $57.6 million at December 31, 2023.

Outlook and guidance

• 2024 revenue guidance updated to $50.6–$52.1 million, representing a 0% to 3% decrease year-over-year.

• Advanced Energy revenue expected at $41.6–$43.1 million (down 4% to 1%), OEM revenue at ~$9 million (flat to up 1%).

• Net loss guidance improved to $24.5–$23.5 million, with operating expenses expected to decrease 7% year-over-year.

• Guidance assumes continued softness in the capital equipment environment and double-digit growth in handpiece sales.

• Management expects continued near-term losses and plans to fund operations through existing cash, product sales, and potential additional financing.