Exhibit 10.1
Venus Concept (NASDAQ:VERO) Investor Overview September 11, 2023
Disclaimer 2 Non-Reliance This presentation does not provide full disclosure
of all material facts relating to Venus Concept Inc.(the “Company”, “us” or “we”), or its securities, and is not subject to liability for misrepresentations under applicable securities legislation. Cautionary Note Regarding Forward-Looking
Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements contained
herein that are not of historical facts may be deemed to be forward-looking statements. In some cases, you can identify these statements by words such as such as “anticipates,” “believes,” “plans,” “expects,” “projects,” “future,” “intends,”
“may,” “should,” “could,” “estimates,” “predicts,” “potential,” “continue,” “guidance,” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements include, but are not
limited to, statements about our product and service offerings; financial performance and metrics; business growth prospects and aspirations; and the efficacy of the restructuring plan, workforce reduction and management transition. These
forward-looking statements are based on current expectations, estimates, forecasts, and projections about our business and the industry in which the Company 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 our control. As a result, any or all of our forward-looking statements in this communication may turn out to be
inaccurate. Factors that could materially affect our business operations and financial performance and condition include, but are not limited to, general economic conditions and involve risks and uncertainties that may cause results to differ
materially from those set forth in the statements and those risks and uncertainties described under Part II Item 1A—“Risk Factors” in our Quarterly Reports on Form 10-Q and Part I Item 1A—“Risk Factors” in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2022. 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. All forward-looking
statements in this presentation are based on information available to us as of the date of this presentation . Except as expressly required by applicable law, we assume no obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. All of the forward-looking statements contained in this presentation are expressly qualified by the foregoing cautionary statement. Securities Laws This presentation does not
constitute an offer to sell or a solicitation of an offer to buy any securities of the Company nor shall there be any sale of Company securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Neither the
United States Securities and Exchange Commission or any state securities commission or regulatory authority have passed on the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.
Investment Highlights New, experienced leadership team with significant
healthcare and turnaround experience A leader within $6.2B global medical device aesthetic market with attractive long-term market growth Comprehensive, differentiated portfolio with innovative product pipeline emphasizing the Company’s
unique next-generation robotics platform leveraging AI / IoT technologies in Aesthetics New 5-year strategic plan launched in early 2023 to turn the company around and deliver an accelerated path to profitability while investing in long-term
growth Turnaround efforts showing improving financial profile with anticipated cash flow positive business exiting 2024, and double-digit growth profile 2025+ 3
Rajiv De Silva Chief Executive Officer Dr. Hemanth Varghese President &
Chief Innovation and Business Officer William McGrail Senior Vice President, Technical Operations and Compliance Michael Mandarello General Counsel & Corporate Secretary Ross Portaro Executive Vice President & General Manager,
Sales and Marketing Domenic Della Penna Executive Vice President & Chief Financial Officer Our Leadership Team Anna Georgiadis Chief Human Resources Officer Company History & Leadership Team Year of Foundation 2011 Neograft
Acquisition 2018 Reverse Takeover of Restoration Robotics 2019 Leadership change with turnaround mandate 2022 - 2023 Launch of robotics platform in aesthetics and portfolio rejuvenation 2024+ 4
A Market Leader in the Medical Device Aesthetics Industry Economic and Flexible
Platforms Core Product Platforms Skin resurfacing device using NanoFractional RF with SmartScan Technology 3-in-1 solution targeting fat, muscle and skin body treatments Diode laser with gold standard efficacy and safety and IoT
technology Hair transplant platform with robotic and AI technology 5
Company Uniquely Positioned in the Aesthetic Industry Only company with
advanced robotics & AI/ML capabilities End-to-end technology and portfolio Market leader in hair restoration/men’s health Medical Robotics CoE Targeted and diversified global presence Face & Skin Body Hair Restoration Hair
Removal Offer products in the segment Offer advanced robotics capability in the space Future robotic offering 6
A Company in Evolution LegacyMax Established Portfolio Recent
Launches Future Pipeline High quality energy-based aesthetic devices Uniquely positioned among competitors in hair restoration Emphasis on subscription sales (internal financing) Global direct presence (peak of 20+ direct
offices) Expected launch of industry first robotics platform in aesthetics Rejuvenation of energy-based device portfolio Emphasis on higher quality cash sales Focused geographic model (<10 direct office) Historical Current/Future 7
Opportunity to Lead Introduction of Medical Robotics in Aesthetics Robotic
Arm Advanced Imaging Our Future-ready Portfolio AI & ML EBD / Mechanical Modalities Consistent and predictable treatment delivery, removing concerns around fatigue and experience to reduce error Advanced imaging to aid treatment and
assess potential treatment outcomes Use AI to customize treatment and optimize outcomes, on an ongoing basis Multi-application platform supporting varied handpieces on a single system Guiding energy-based devices when treating various skin
lesions/conditions Potential to address market unmet needs Reduce Human Error Lower Downtime Reduce Pain/Discomfort Lower Procedure Time 8
New Strategic Plan Aimed at Business Turnaround 01Right sizing the business by
rationalizing international infrastructure, reducing costs and simplifying the organization. 05Investing in R&D with a primary focus on robotics as the future growth driver with targeted efforts to rejuvenate our energy-based product
portfolio 02Changing business model to focus on cash sales and reduce reliance on subscription sales (internal financing) model. 03Focusing on the US as our primary market while maintaining an optimal mix of direct presence and distributors
in international. 04Maintaining a broad portfolio focus on energy-based devices and robotics, with better customer segmentation and more robust support. 06Pursuing business development opportunities to accelerate growth and pipeline
progress. 9
Right Sizing and Resetting the Business Well Underway 10 Rationalizing the
Cost Base Shifting to Higher Quality Revenues Refocus on the US and Optimize International Markets 1H 2022 1H 2023 Cash Opex $45M Cash Opex $38M Cash vs Subscription 49% : 51% Cash vs Subscription 73% : 27% Direct
Offices 15 Direct Offices 12 Reduction of 18% Projected annualized reduction 2022 -> 2024 of $20M (29%) Successful re-balancing of business model Remaining subscription sales under new credit model Reduction of 3 markets Estimated
direct offices <10 by early 2024
New Product Introduction (Q4 2023): Versa Pro New Energy Based Device Product
Update An upgrade opportunity with a potential install base of 2,526 systems globally, 1,297 in the US, in addition to new device sales An improved look & feel, with the addition of the Viva MD applicator New system will include: 10
handpieces, like before, with the addition of Viva MD applicator to replace the Viva applicator New color of the main console New 80 pin tips for a deeper ablation and coagulation effect (up to 750nm) New branded procedure to leverage
combination treatment Launch kit including marketing materials & education program 11
New Product Introduction (2H 2024): Venus AI.ME: Our Next-Generation Aesthetic
Platform Current Platform Robotic micro-coring application for skin tightening, treatment of scars, stria, etc. Future Pipeline Modular Applications Multi-modal EBD integration FDA 510(K) Clearance Q4, FY2022 Launch H2,
FY2024 Combining Robotics Automation, Vision and AI with Innovative Treatment Modalities 12
Financial Profile Improving Rapidly 13 FY22 Q2’23 LTM FY23
Expected Reflects shift to cash sales and shutdown of unprofitable international subsidiaries Revenue Gross Margin GAAP Opex Cash Opex Operating
Cashflow $99.5M 66% $100.8M $87.2M $(27.0)M $86.4M 66% $91.3M $81.2M $(15.3)M $90M - $95M ~67% $87M - $89M $77M - $79M >50% reduction in YoY cash burn Consistent, attractive gross margins Early impact of cost
reduction Improvement in bad debt expense Proving out turnaround thesis and path to becoming cash flow positive in 2H 2024
Longer-Term Aspirations 2025+ Accelerate pipeline /inorganic
growth 2024 Growth with key pipeline launches 2023 Right size business, re-focus business model and rejuvenate R&D Growth Aspirations Revenue: Double Digit Growth 2025+ Operating Cash Flow: Break-even in 2H 2024, Positive in
2025 EBITDA Margin: Positive in 2025, Industry Standard 2025+ 14
