Venus Concept Lays Off Around 18% Of Its Workforce, Expects Q4 Earnings Below Street Estimates

  • Venus Concept Inc VERO announced a restructuring plan, workforce reduction, management transition, and preliminary unaudited revenue results.
  • President & Chief Business Officer Hemanth Varghese was appointed to a newly created executive role, President & Chief Innovation and Business Officer. 
  • Related: Venus Concept Stock Surges On FDA Approval For Robotic Skin Resurfacing Tech.
  • In addition to his continuing responsibilities as Chief Business Officer, Dr. Varghese will lead the company's global R&D activities.
  • Søren Maor Sinay, the company's Chief Operating Officer, announced his decision to leave for personal reasons. He will continue as a Senior Advisor until March 6, 2023.
  • The company's board approved the restructuring, including a reduction in its employee base by up to 70 employees, constituting a reduction of approximately 18% in the company's global workforce.
  • The company estimates to incur restructuring charges of $2.0 million to $2.5 million and expects the restructuring plan to result in total annual pre-tax savings of $13-$15 million beginning in 2024.
  • For Q4 FY22, Venus expects sales of $23.5-$24.5 million, down 25-28% Y/Y, versus the consensus of $25.12 million.
  • For FY22, the company expects sales of $98.7-$99.7 million, down 6%-7% Y/Y, below the consensus of $100.25 million.
  • Price Action: VERO shares are down 9.5% at $0.3501 on the last check Tuesday.
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