Vapotherm Issues Q1 FY22 Sales Guidance Below Expectations, Pulls FY22 Outlook

Vapotherm Inc VAPO expects Q1 FY22 sales of $20.5 million - $21.5 million, lower than $32.3 million in Q1 FY21 and the consensus of $25.78 million.

• Vapotherm also announced the withdrawal of its full-year 2022 issued in January and reiterated in February.
• For FY22, the company expected sales of $104 million - $108 million, gross margin of 47% - 50%, and adjusted EBITDA loss of $(39) million - $(41) million.
• The company notes that there would be two COVID-19 surges in 2022, with resulting revenue at 50% of prior waves.
• Based on what appears to be the diminishing virulence of COVID-19 (resulting in less need for acute respiratory intervention) and a reduction of seasonal hospitalization patterns related to flu and RSV in Q1, the company has elected to withdraw its guidance.
• "The initial COVID-19 surge of 2022, related to the Omicron variant, as well as trends in flu and RSV cases played out as we expected in the first half of the quarter. However, in mid to late February we began to see signs of a slowdown in the number of COVID-19 related hospitalizations, especially of patients needing acute respiratory interventions," said CEO Joe Army.
• Price Action: VAPO shares closed 17.6% lower at $10.65 during after-hours trading on Wednesday.