Venus Concept Launches Venus Prime
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The introduction of Venus Prime, a financing program by Venus Concept Inc., signifies an adaptive strategic move in response to the tightening of credit markets. By offering competitive rates and payment flexibility, Venus Concept aims to bolster sales and customer loyalty, especially as traditional third-party financing becomes more challenging to obtain. The program's potential to unlock revenue from customers with reputable credit profiles yet affected by stringent lending criteria can be a growth catalyst. It could also improve the company's cash flow position, as highlighted by the shift towards cash sales and the goal of achieving cash flow breakeven.
However, investors should consider the inherent risks associated with in-house financing, such as increased credit risk exposure and potential impacts on the company's balance sheet. The success of Venus Prime will largely depend on the company's ability to manage these risks effectively while capitalizing on the opportunity to serve a market segment that is currently underserved by traditional lenders.
The aesthetic medical device industry is highly competitive, with constant innovation and customer service being key differentiators. By launching Venus Prime, Venus Concept not only responds to a gap in the market but also strengthens its competitive positioning. This strategic initiative may enhance customer retention and attract new clients who prioritize financial flexibility. The focus on a seamless technology upgrade program also suggests an emphasis on long-term customer relationships and recurring revenue streams.
From a market perspective, the program's success will be contingent on the company's ability to effectively communicate its value proposition to potential clients. Understanding customer needs and tailoring financing solutions accordingly will be crucial for Venus Concept to leverage this program and expand its market share.
The launch of an in-house financing program like Venus Prime requires Venus Concept to navigate a complex regulatory landscape. Compliance with consumer finance laws and regulations will be critical to ensure the program's longevity and avoid potential legal pitfalls. The company will need to maintain stringent credit screening practices to mitigate the risk of default while adhering to fair lending practices and protecting consumer data privacy.
Additionally, the legal framework surrounding such financing programs is subject to change and it will be important for Venus Concept to stay abreast of any legislative developments that could impact their business model. The company's ability to adapt to regulatory changes will be a key factor in the sustainability of Venus Prime.
TORONTO, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Venus Concept Inc. ("Venus Concept" or the "Company") (NASDAQ: VERO), a global medical aesthetic technology leader, announced today the launch of Venus Prime, a structured in-house financing program replacing its legacy subscription program for new customers in North America. Under our Venus Prime program, select customers can qualify for competitive financing rates and continue to benefit from the payment flexibility afforded by our previous subscription financing program when purchasing our aesthetic medical devices, as well as a seamless technology upgrade program made available to our customers in years 2 and 3 of ownership. Venus Prime is now available to qualifying customers who may not currently be eligible for financing by traditional third-party lenders under current tight lending practices but demonstrate reputable credit and business practices.
“The current macroenvironment has restricted many customers in their ability to secure financing, regardless of creditworthiness,” said Domenic Della Penna, Executive Vice President & Chief Financial Officer of Venus. “Venus Prime is an innovative business to business offering we can provide as an attractive financing alternative, supporting select, high-quality customers that meet our credit screening practices in purchasing our devices. This launch coupled with our successful shift to a focus on cash sales through preferred lending partners allows us to provide seamless lending solutions to our customers while continuing our effort to achieve cashflow breakeven.”
“Venus Aesthetic Intelligence is about redefining what's possible in aesthetics by delivering innovative solutions that maximize value for clinics and address the most in-demand patient needs. Venus Prime is the latest example of flexible business solutions we can offer to support our customers in developing their businesses with our leading aesthetic devices,” said Rajiv De Silva, Chief Executive Officer of Venus Concept. “Furthermore, our growing network of Venus AI connected devices is uniquely suited for the Venus Prime program, providing remote connectivity to our systems, with added security and customer insights to enhance customer protection and business success.”
Venus Prime was soft-launched in Q4 2023 and is now available to customers in most jurisdictions within the United States and Canada. The introduction of Venus Prime will not impact existing Venus subscription plan customers and current customers in good standing can inquire regarding upgrade opportunities for their system under the new program.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “1933 Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “1934 Act”), including, without limitation, statements about the Company’s financial condition, and other statements containing the words “expect,” “intend,” “may,” “will,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates, forecasts, and projections about the Company’s business and the industry in which it operates and management’s beliefs and assumptions and are not guarantees of future performance or developments and involve known and unknown risks, uncertainties, and other factors that are in some cases beyond the Company’s control. Factors that could materially affect the Company’s business operations and financial performance and condition include, but are not limited to, those risks and uncertainties described under Part I Item 1A - “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, Part II Item 1A - “Risk Factors” in the Company’s most recent Form 10-Q and in other documents the Company may file with the SEC. You are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are based on information available to the Company as of the date hereof. Unless required by law, the Company does not intend to publicly update or revise any forward-looking statements to reflect new information or future events or otherwise.
About Venus Concept
Venus Concept is an innovative global medical aesthetic technology leader with a broad product portfolio of minimally invasive and non-invasive medical aesthetic and hair restoration technologies and reach in over 60 countries and 14 direct markets. Venus Concept's product portfolio consists of aesthetic device platforms, including Venus Versa, Venus Legacy, Venus Velocity, Venus Fiore, Venus Viva, Venus Glow, Venus Bliss, Venus BlissMAX, Venus Epileve, Venus Viva MD and AI.ME. Venus Concept's hair restoration systems include NeoGraft® and the ARTAS iX® Robotic Hair Restoration system. Venus Concept has been backed by leading healthcare industry growth equity investors including EW Healthcare Partners (formerly Essex Woodlands), HealthQuest Capital, Longitude Capital Management, Aperture Venture Partners, and Masters Special Situations.
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