• Net Revenue: $2.3 million for Q3 2024, an increase of 10% from Q3 last year.
• Shipments to US Eye Care Professionals (ECPs): $2.2 million, up 5% over Q3 last year.
• Year-to-Date Net Revenue: $6.9 million, an increase of 3% from the prior year-to-date.
• Year-to-Date Shipments to ECPs: $6.6 million, up 3% from the prior year.
• Gross Margin: 58.4% of net revenue, up from 57% in Q3 2023.
• Cash Receipts from Customers: Down 21% from the same quarter last year.
• Net Cash Used in Operating Activities: $553,000 in the quarter, an increase of 39% from Q3 2023.
• Cash Balance: $1.3 million at the end of the quarter.
• Repeat Customer Rate: 99.4%, the same as Q3 2023.
• Shipments per Active Account: $985, an increase of 7% from the same period in 2023.

• Warning! GuruFocus has detected 3 Warning Signs with ASX:VTI.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Visioneering Technologies Inc (ASX:VTI) reported a 10% increase in net revenue for Q3 2024 compared to the same quarter last year.
• The company has achieved a six-year compound annual revenue growth of 18%, indicating strong long-term growth.
• The interim results from the Protect randomized clinical trial show that the Natural View Multifocal lens is both safe and effective in slowing myopia progression in children.
• Visioneering Technologies Inc (ASX:VTI) has expanded its international presence with new distribution agreements in several countries, including Italy and Latin America.
• The company reported its highest quarterly gross margin in history at 58.4%, up from 57% in the third quarter of 2023.

Negative Points

• Cash receipts from customers in Q3 2024 were down 21% compared to the same quarter last year.
• Net cash used in operating activities increased by 39% compared to the third quarter of 2023.
• The number of active US accounts decreased by 1% from the third quarter of 2023.
• Visioneering Technologies Inc (ASX:VTI) plans to explore additional financing, indicating potential cash flow challenges.
• The departure of Brian Lane, CFO and COO, in mid-November could lead to transitional challenges for the company.

Q & A Highlights

Q: Can you provide an overview of Visioneering Technologies Inc's flagship product and its target markets? A: Visioneering Technologies Inc's flagship product is the Natural View Multifocal, a daily disposable soft contact lens. It targets two main patient populations: children with pediatric myopia progression and adults over 40 with presbyopia. The company projects significant growth in these markets, with the number of patients receiving treatment expected to grow from 10 million to 57 million by 2030.

Q: How has Visioneering Technologies Inc performed financially in the third quarter of 2024? A: The company reported a net revenue of $2.3 million for Q3 2024, marking a 10% increase from the same quarter last year. This is the second-highest quarter since Q2 2023. Shipments to US eye care professionals increased by 5% over Q3 last year, reflecting patient-level demand.

Q: What are the key findings from the Protect randomized clinical trial for myopia management? A: The Protect trial interim results indicate that Natural View Multifocal is both safe and effective in slowing myopia progression in children. The lens showed an 89% effectiveness in slowing myopia progression as measured by refractive error and 58% effectiveness as measured by axial length change, outperforming other products in the market.

Q: What are the company's plans for expanding its sales team and market reach? A: Visioneering Technologies Inc plans to expand its US sales team by adding two new experienced sales representatives in the Northeast and Midwest markets by the end of 2024. The company is also negotiating distribution agreements for additional territories, including Germany, Austria, Switzerland, and South Korea.

Q: How is Visioneering Technologies Inc addressing the needs of diverse patient populations? A: The company encourages eye care professionals to use multiple products to address diverse patient needs. The interim results from the Protect trial suggest that Natural View Multifocal should be one of the products employed to ensure the best care for all patients. The lens is designed to provide effective myopia management without compromising vision or comfort.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.