Why Vapotherm (VAPO) Shares Are Plunging Today? - Vapotherm (OTC:VAPO)

Vapotherm Inc VAPO shares plunged almost 40% after the company reported disappointing Q3 FY22 earnings.
Total revenue was $13.5 million, down 65% Y/Y and missing the consensus estimate of $16.54 million.
Vapotherm reported a wider EPS loss of $(0.98) compared to $(0.52) a year ago and missing the Wall Street estimate of $(0.78).
The company is evaluating various capital-raising options while it continues to execute its path-to-profitability initiative, which includes converting $20 million of excess inventory into cash.
The company believes the combination of additional capital and converting up to $20 million of inventory into cash will allow it to fund its business through 2023 and get it to Adjusted EBITDA positive in Q4 of 2023.
Guidance: For fiscal 2022, Vapotherm expects sales of $64-$66 million, down from prior guidance of $76-$81 million.
The company says that the guidance reflects a light flu season and does not reflect any significant COVID impact.
Vapotherm expects a gross margin of 22%-24%, a decrease from the previous range of 30%-32%.
Price Action: VAPO shares are down 38.60% at $1.29 on the last check Thursday.

Why Vapotherm Shares Are Plunging Today?