Overview

• U.S. sleep disorder device maker's Q1 revenue rose 70% yr/yr, driven by SCN acquisition

• Gross profit for Q1 increased 103% yr/yr, with gross margin rising to 60%

• Q1 net loss doubled to $7.8 mln due to expansion and higher operating expenses

Outlook

• Company expects continued integration and growth from SCN and medical provider collaborations

• Vivos is working to secure funding and restructure debt to reduce cash burn

• Company expects certain professional fees incurred in Q1 will not recur this yr

Result Drivers

• SCN ACQUISITION - Revenue growth was driven by the acquisition of The Sleep Center of Nevada and related business model changes

• SERVICE REVENUE MIX - Increase in sleep testing services and treatments at SCN locations boosted service revenue

• LOWER CUSTOMER ACQUISITION COSTS - Company reported a significant reduction in customer acquisition costs following its business model pivot

Company press release: ID:nGNX2ZJblP

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$7.75 mln
Q1 Gross Profit		$3.06 mln
Q1 Operating Income		-$6.61 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Vivos Therapeutics Inc is $2.50, about 327.3% above its May 19 closing price of $0.59

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