Obstructive Sleep Apnea treatment provider ProSomnus Inc (NASDAQ: OSA) reported Q2 revenues of $6.9 million, up 43% Y/Y and a sequential revenue increase of 19%, slightly beating the consensus of $6.4 million.
Revenue growth and the underlying growth in deliveries of the company’s products reflect the growing clinical adoption of ProSomnus’s precision devices in the U.S. and Europe and the positive impacts of the expanded field sales team during 1H of 2023.
The company reported an EPS loss of $(0.01), down from $(0.43) a year ago, beating the consensus of $(0.32).
Gross margins improved modestly compared to 53% for the first quarter of 2023 and 52% compared to the same period during 2022 and decreased slightly compared to year-to-date 2022 of 55%.
Operating expenses increased to $9.5 million for the second quarter ended June 30, 2023, an increase of $5.5 million compared to the same period during 2022 and $2.3 million compared to the first quarter of 2023.
Cash on hand totaled $6.2 million as of June 30, 2023.
The company said updated preliminary data from the Front Line Obstructive Sleep Apnea Treatment study (FLOSAT), a head-to-head study versus CPAP for moderate and severe OSA, was presented at three sleep industry conferences demonstrating ProSomnus precision devices as efficacious and patient-preferred.
The timeline for the initial data readout from the Severe Obstructive Sleep Apnea Study in 1H 2024 remains on track.
ProSomnus is completing the development of the next-generation precision OAT featuring embedded remote patient monitoring capabilities, with the first commercial use expected in Q4 of 2023.
OSA shares closed at $2.09 on Wednesday.
ProSomnus Inc’s recent financial report reflects a promising trajectory for the company’s growth and market adoption. The significant increase in Q2 revenues, both year-over-year and sequentially, showcases the expanding clinical acceptance of their precision devices in the treatment of Obstructive Sleep Apnea (OSA). The positive impact of the expanded field sales team highlights the effectiveness of their distribution strategy.
Despite reporting a modest EPS loss, ProSomnus has managed to substantially narrow the loss compared to the previous year, indicating improved financial management. The company’s focus on enhancing gross margins demonstrates their commitment to operational efficiency.
The increase in operating expenses could be a concern, and it will be important for the company to manage these costs while sustaining revenue growth. The company’s cash on hand, though relatively moderate, provides a reasonable buffer for ongoing operations and growth initiatives.
The positive reception of ProSomnus’s precision devices in clinical studies and patient preference underscores their effectiveness in comparison to traditional treatments like CPAP. The upcoming data readout from the Severe Obstructive Sleep Apnea Study in 1H 2024 holds potential for further validating their offerings.
The development of the next-generation precision OAT with remote patient monitoring capabilities presents an exciting opportunity for ProSomnus to stay at the forefront of innovation in OSA treatment. The expected commercial launch of this advanced product later in 2023 could contribute to revenue growth and market differentiation.
Closing at $2.09, the stock price reflects the market’s current sentiment. Investors may be observing the company’s continued progress, especially considering its expanding product portfolio and the upcoming milestones from clinical studies. Overall, ProSomnus Inc appears to be on a positive trajectory with its innovative approach to addressing Obstructive Sleep Apnea and its efforts to improve patient outcomes and experiences.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Suparba Sil