ProSomnus, Inc.

ProSomnus reported Q4 2023 revenue of $7.8 million, up 35% from Q4 2022 and up 11% sequentially from Q3 2023. Full-year 2023 revenue was $27.7 million, up 43% from $19.4 million in 2022. Q4 operating expenses were $12.8 million, up 8.5% year over year; full-year operating expenses were $46.8 million, up 51.5% from $30.9 million in 2022. Q4 cost of revenue was $4.1 million, sales and marketing was $3.4 million, G&A was $4.0 million, and R&D was $1.4 million. Cash, restricted cash, and cash equivalents ended the quarter at $7.1 million versus $12 million in Q3. Management did not provide next-quarter or full-year 2024 revenue guidance on this call, saying it would share results for Q1 2024 and guidance for the remainder of 2024 on a future call.

Len Liptak framed the quarter as validation of ProSomnus’ positioning as the leading non-CPAP OSA therapy and tied growth to product differentiation, EVO adoption, the referral initiative, and scientific data. He repeatedly emphasized profitable growth, saying the company is making progress while spending far less than competitors on sales, marketing, business development, and market access. His tone was confident and promotional, but he also highlighted ongoing work on the severe OSA label expansion and the RPMO2 device.

Brian Dow focused on the financial mechanics behind the quarter: Q4 revenue of $7.8 million, operating expenses of $12.8 million, and cash/restricted cash/equivalents of $7.1 million. He broke down Q4 cost of revenue at $4.1 million, sales and marketing at $3.4 million, G&A at $4.0 million, and R&D at $1.4 million, noting cost pressure from higher production volumes, the new manufacturing facility, public-company expenses, and development work. He said cash declined by $4.9 million in Q4, including $3.9 million used in operations and a $1 million insurance outlay, and said the company is reviewing financing and strategic alternatives while working with Nasdaq to regain listing compliance.

There was no analyst Q&A on the call. Instead, management preemptively addressed likely investor concerns by discussing liquidity, financing alternatives, and Nasdaq compliance. Brian Dow said the company recently filed an appeal, has a hearing with Nasdaq next month, and remains optimistic about potential pathways to regain compliance.