VSEE HEALTH, INC. (VSEE)·Q3 2024 Earnings Summary

Executive Summary

• Revenue grew 131% year-over-year to $3,354,437 on expanded technical/engineering services and the full quarter inclusion of iDoc; sequentially, revenue increased from $1,700,000 in Q2 2024 to $3,354,437 in Q3 2024 .
• Net loss widened to $(51,751,525) driven by a one-time goodwill impairment charge of $54,984,000 and losses related to note conversions; pro forma results showed an improved net loss of $(368,063), or $(0.02) per share versus $(1,322,199), or $(0.09) per share in Q3 2023 .
• Gross margin dollars rose to $2,413,049 versus $973,072 a year ago on higher volumes across services and subscriptions; cash ended Q3 at $2,327,337 versus $118,734 at year-end 2023 .
• The company did not provide formal financial guidance ranges, and we were unable to locate a Q3 2024 earnings call transcript or S&P Global consensus estimates for comparison at this time .

What Went Well and What Went Wrong

What Went Well

• Revenue mix broadened with contributions from patient fees ($623,198) and telehealth fees ($485,971) following the iDoc acquisition, alongside strong technical engineering fees ($806,456) and solid subscription fees ($1,037,457) .
• Gross margin dollars expanded substantially to $2,413,049, reflecting higher service volumes and subscription usage despite churn earlier in the year .
• Management highlighted strategic wins including contracts with Seven Corners Correctional Health, partnerships with SkywardRx and Ava Robotics, and launches of Aimee and GLP‑1 telehealth programs; “This quarter marks a transformative moment... the completion of our first full quarter post‑merger” (Imo Aisiku) .

What Went Wrong

• Operating expenses surged to $59,479,147 due largely to a one‑time goodwill impairment of $54,984,000 and transaction-related costs, leading to a net loss of $(51,751,525) for the quarter .
• Loss on extinguishment of $(740,979) and elevated interest expense $(232,082) weighed on results despite a $5,737,606 gain from change in fair value of financial instruments .
• Subscription revenue growth was modest quarter-on-quarter and has been pressured earlier by enterprise churn as some clients returned to in‑person consultations; Q3 subscription revenue was $1,037,457 vs. nine‑month subscription revenue decline versus 2023 noted in the release .

Financial Results

Income Statement Comparison

Notes: Q2 2024 exact COGS and gross margin were not disclosed in the accessed Q2 earnings 8-K/press release excerpts .

Revenue Breakdown (Segments)

Balance Sheet KPIs

Pro Forma Summary (for comparability)

Guidance Changes

Earnings Call Themes & Trends

Note: We were unable to locate a Q3 2024 earnings call transcript in the document catalog; themes are based on the Q3 and Q2 earnings 8-K/press releases .

Management Commentary

• “This quarter marks a transformative moment for VSee Health, the completion of our first full quarter post‑merger. The integration of VSee Lab and iDoc Virtual Telehealth Solutions has solidified our position in delivering scalable, tailored telehealth solutions.” — Imo Aisiku, M.D., Co‑CEO and Chairman .
• “Our ability to combine fast customization, enterprise scalability, and robust security is what sets us apart… programs addressing obesity, maternal health disparities, and veteran care exemplify our commitment to delivering scalable solutions that improve lives while creating long‑term value.” — Milton Chen, Ph.D., Co‑CEO .

Q&A Highlights

We were unable to locate a Q3 2024 earnings call transcript in the document catalog; therefore Q&A highlights and any guidance clarifications from the call are not available [SearchDocuments: earnings-call-transcript returned none].

Estimates Context

• S&P Global/Capital IQ Wall Street consensus estimates for Q3 2024 (EPS, Revenue) were unavailable at the time of this analysis due to API request limits. As a result, we cannot provide a beat/miss assessment versus consensus for Q3 2024. Values would be retrieved from S&P Global when available.

Key Takeaways for Investors

• Revenue inflection: Q3 revenue of $3,354,437 vs. $1,451,471 a year ago and $1,700,000 in Q2 highlights stronger execution and the full quarter of iDoc contributions alongside increased technical/engineering and professional services activity .
• One‑time impairment drove reported loss: The $54,984,000 goodwill impairment and transaction/financing effects overwhelmed operational progress, resulting in EPS of $(3.43); pro forma results suggest underlying loss rates improved year-over-year .
• Mix broadening: New contributions from patient and telehealth fees, alongside higher engineering/customization work, indicate traction in acute care and integrated services offerings .
• Liquidity improved: Cash rose to $2,327,337 with positive financing flows year‑to‑date; AR growth to $2,613,327 reflects billing momentum, but leverage in current notes warrants monitoring .
• Strategic pipeline: Partnerships (Seven Corners, SkywardRx, Ava Robotics) and program launches (Aimee, GLP‑1, maternal care, sea ambulance telehealth) expand addressable opportunities into 2025 .
• Data watch: With no formal guidance and unavailable consensus estimates, near‑term stock moves likely hinge on clarity around recurring revenue trajectories, margin normalization post‑impairment, and financing structure evolution .
• Next steps: Monitor Q4 disclosures for guidance initiation, margins, cash flow trends, and any additional contracts that could sustain revenue growth while reducing reliance on one‑off accounting charges and financing gains .

Citations:

• Q3 2024 8‑K press release and financial statements .
• Q2 2024 8‑K press release and pro forma highlights .