Shares of Vapotherm (VAPO -4.60%), a medical technology company, jumped 34.2% on Wednesday, after it reported its fiscal first-quarter earnings. Vapotherm’s services are in high demand during the COVID-19 pandemic because of one of its devices.
During the first quarter, Vapotherm’s revenue was $19.1 million, a 55.4% year-over-year increase. It came in slightly ahead of the $18.9 million analysts were expecting. Also, the company reported a net loss of $13.8 million, slightly worse than the $12.9 million it reported during the prior-year quarter.
The healthcare company recorded a $0.66 net loss per share, worse than the average analyst estimates of a $0.56 net loss. Financial results were mixed, but investors seem optimistic about the company’s Precision Flow Hi-VNI system. This respiratory support device has seen a surge in demand as a result of the rapid spread of COVID-19.
In the press release announcing Vapotherm’s first-quarter financial results, CEO Joe Army said: "We believe the first quarter of 2020 was transformational for Vapotherm as significant customer demand in both new and existing accounts due to COVID-19 materially increased the awareness of our Hi-VNI Technology for treating patients suffering from respiratory distress. In the first quarter, we significantly exceeded expectations for revenue, continued the rapid expansion of our worldwide installed base of Precision Flow systems, and improved our gross margin by 610 basis points over the prior-year period despite strong headwinds."
During the first quarter, worldwide installed bases of Vapotherm’s Precision Flow Hi-VNI system increased by 22.7%. And given that the COVID-19 pandemic is far from over, the respiratory support device will continue to attract a lot of attention. Vapotherm’s shares are up by 146.7% year to date.