Vivos Therapeutics, Inc. (NASDAQ:VVOS) Q1 2023 Earnings Call Transcript

So it’s not inconceivable at all for us to hit those numbers or exceed those numbers as we go forward. Now whether that happens in the fourth quarter of this year or the first quarter of next year or — the timeframes that we’ve given is hard to say. But we’re — as we look at it, and we’re in the trenches every day with these distributors, we’re very optimistic about it, and we’ll see what happens. I mean, as we’ve talked before, it’s time for this company to put up and so we’re moving every resource we have to make this happen and to demonstrate that we can grow this company. So that’s why we’re optimistic. So yeah, this is a — it’s a high bar, but we’re very optimistic about it right now, and that’s our — that’s where we stand today.

Scott Henry: Okay, great. Thank you for taking the questions.

Operator: Our next question comes from the line of Lucas Ward with Ascendiant Capital Markets. Please proceed.

Lucas Ward : Thank you. Hi, guys, and congratulations on meeting your business goals and getting closer to your two-year goals. I’m also interested in the revenue aspect. I was wondering if you could quantify the impact of sales through the DME and the DSO channel — like near term or in a few quarters. Just so we can understand how big that really is.

Kirk Huntsman : Yeah. So thank you for that. I think on the last call, we’ve been talking about DSOs now for a year and a half. And what we’ve learned — and we said in the very beginning that the opportunity with DSOs was huge. There’s 40,000 dental offices across the United States that have corporate ownership in these organizations called DSOs. So the opportunity is huge, but these guys are also very cautious and it’s a slow boil for that. And that’s — been exactly what’s happened. The opportunity as we now get into — where some of our pilot tests are maturing and feedback is percolating up to the C-suite and these DSOs, we expect to start to see more expansion of that. But it is still going to be a very cautious rollout and a slow boil.

I expect that to be the case for another probably 12 months. At some point, we’ll reach a tipping point with these guys where they will all collectively realize the opportunity that’s before them in managing sleep, which is multi-billion-dollar opportunity for these DSOs. The fact that we now have a product suite with simpler, easier, better price points for DSO-type customers, patients, I think makes it infinitely easier for us to crack that market. On the DSO front then, I would say expect it to be — still continue to grow. We’re still signing on new relationships. There are innovative new models such — I mentioned Toothpillow. I highlighted that because they’re kind of an innovative direct-to-market type DSO, or direct-to-consumer type DSO.

And I would say that they will continue to contribute. And frankly, if you talk to the guys at Toothpillow, their goals or the number of children they expect to be able to address in the first year is just off the charts. But they have established a baseline with influencers, social media influencers lined up, famous individuals with children that have been through treatment now and have had tremendous results. We’ve published a few papers, we’re publishing some more on the efficacy of what we’re doing with children. So we have a pending FDA clearance on that, that we’re hoping to get here real soon. So we have a number of things that’s going to drive that market. That’s the first thing. On the DME front, again, the magnitude of that opportunity is staggering.