Viemed Q3 2024 Update - VMD
Quick update after Q3 2024
*Disclosure: I own shares in VMD. I am not a professional. Please do your own due diligence.
Price: $9.00 USD
MC: 367 million USD
EV: 363 million
1 year performance: +26.7%
VMD reported yesterday after the close and held a call today. Results were ahead of my expectations and the stock was down 1.5% today. It should be noted that VMD is up about 25% in the last 6 weeks.
*all numbers in USD unless stated otherwise
Quarter Recap
Revenue came in at 58 million vs 49.4 million last year.
Up 5.5% sequentially and 15% year over year.
EBITDA came in at 14 million vs 12.1 million last year.
up 15.5% year over year.
Vent patients grew to 11,374 from 10,905 in Q2.
They disclosed their sleep therapy patients and sleep resupply numbers this quarter.
Sleep therapy patient count up 11% sequentially to 19,478.
Sleep resupply orders up 9.7% sequentially to 22,143.
Gross margin at 59.3% vs 61.9% last year.
This is mainly due to the increased mix of sleep and other business and a lower percentage of revenue coming from vents.
Q4 guidance at 59.7-60.9 million in revenue.
Up 4% sequentially at the midpoint.
This would be 18.9% year over year.
Call Notes
They noted that the 75/25 rate reintroduction is not dead.
So far GLP-1 drugs have been a tailwind for them as the patients receive multi faceted treatment.
Sleep at 17% of revenue this quarter.
They have a sleep resupply frequency of 2-2.5 times per year.
M&A pipeline sounds robust.
Valuation
I have them at 7.3x EV/ttm EBITDA. This would be close to 7x EV/my 2024 EBITDA estimates. Of course, looking ahead to 2025 this looks even cheaper.
Closing Thoughts
This was another boring quarter of solid execution by VMD. It’s nice to see the business not being negatively affected by GLP-1 drugs. They noted that the regulatory environment appears to be positive. The balance sheet is solid and the M&A pipeline looks strong. I hope we get another HMP sized deal, but even some smaller tuck ins would really juice the top line.
With solid organic growth and some M&A, VMD looks to be a good bet here. I continue to hold my shares.
Thanks for reading.
Dean
* long VMD