VAPO - Vapotherm crashes 45% as FY22 outlook cut again amid Q3 revenue slump

Vapotherm ( NYSE: VAPO ) stock slumped ~45% on Thursday after Q3 results missed estimates and the company cut its FY22 outlook again.

Net loss widened to -$26.21M, compared to -$13.57M in Q3 2021.

Total net revenue declined -64.4% Y/Y to $13.55M. The company said Capital and disposables revenue were lower in Q3 2022 as the Delta variant related COVID surge in Q3 2021 had driven significant worldwide demand for the products, which did not occur in the current quarter.

Q3 Disposables revenue fell -56.3% Y/Y to $9.46M.

Adjusted EBITDA was -$17.75M, compared to -$10.71M in Q3 2021.

Cash and cash equivalents were $28.7M as of Sept. 30, compared to $49.9M as of June 30. Vapotherm noted that the decline was due to the net loss.

Outlook :

Vapotherm reduced its FY22 net revenue outlook and now expects it to be between $64M and $66M ( prior forecast during Q2 results $76M to $81M) consensus revenue estimate from 4 analysts is $71.79M.

The company said the decrease in revenue guidance was due to Q3 results, near-term headwinds in the form of longer worldwide capital equipment sales cycles and the elimination of commercial investments in Vapotherm Access and RespirCare.

Full year gross margin is expected to be in the range of 22% to 24%, compared to previous range of 30% to 32%.

Vapotherm noted that it thinks the combination of additional capital and converting of up to $20M of inventory into cash will allow to fund its business through 2023 and get to Adjusted EBITDA positive in Q4 2023.

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