EXCLUSIVE: ProSomnus Reports Much Smaller Than Expected Q2 Loss, Revenues Inline With Consensus

Obstructive Sleep Apnea treatment provider ProSomnus Inc 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.

Price Action: OSA shares closed at $2.09 on Wednesday.