Venus Concept Inc. (VERO) stock prices were up by 2.45% as of the market closing on August 13th 2021. This brought the price per share down to USD$2.09 at the end of the trading day. Subsequent premarket fluctuations saw the stock surge by 12.92%, bringing it up to USD$2.36.
VERO Stock’s Revenue Reports
VERO stock reported total revenue in the amount of USD$25.8 million for the second quarter of fiscal 2021. This was a 52% increase from the numbers reported in the prior year quarter. The year over year increase in total revenue was largely driven by a 56% increase in international revenue, as well as a 48% increase in the United States revenue.
Q2 2021 Revenue Breakdown
This increase in regional revenue, in turn, was largely attributable to a 71% increase in lease revenue and a 29% increase in systems revenue. Further contributing to the difference was an 86% increase in products revenue and a 5% increase in services revenue. The percentage of total systems revenue generated from the company’s subscription model was up to 60%. This is compared to the 52% reported for the second quarter of 2020.
Gross Profit and Margin
Gross profit for the second quarter of 2021 was reported at USD$18.7 million. This is a 57% year-over-year increase. Gross margin was reported at 72.5% as compared to the 70% of revenue reported for the second quarter of 2020. The increase in gross margin was largely attributable to higher sales of Venus consumables. Also contributing to the year over year difference was an improved revenue mix of system sales sold under VERO stock’s subscription program, primarily tracing to Venus Bliss.
VERO Stock’s Operating Income
Operating income was down 17% for the second quarter of 2021, coming in at USD$17.2 million. The year over year decrease was largely attributable to the USD$6.8 million decrease general and administrative expenses. The 46% decrease reflects a positive USD$3.2 million bad debt recovery, as well as a USD$2.8 million gain on forgiveness of government assistance loans. These gains were partially offset by an increase of USD$5.6 million in sales and marketing costs, representing a 123% increase. Additionally offsetting the gains were a 29% increase in R&D expenses as compared to Q2 2020.
Future Outlook for VERO Stock
VERO stock reported a stellar financial quarter, with the company taking steps to maintain its momentum. The company is keen to continue its trajectory of success as the world hurtles towards a post-pandemic economy. Investors are confident in managements ability to leverage their resources to facilitate increases in shareholder value.
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