Why did RSLS miss earnings forecasts in Q3 2024?

ReShape Lifesciences Inc. (RSLS) missed earnings forecasts in Q3 2024 due to a combination of factors that significantly impacted its financial performance:

1. **Revenue Decline**: The company's total revenue for Q3 2024 was $2.29 million, which was significantly lower than the estimated revenue of $2.51 million. This decline in revenue can be attributed to various factors, including the adoption of GLP-1s, which led to a decrease in sales volume.
2. **Strategic Moves and Financial Challenges**: Reshape Lifesciences has been implementing strategic moves such as cost reductions and mergers, which have impacted its financials. For instance, the company achieved a 45% reduction in overall operating costs for the first six months of 2024 compared to the same period last year. However, these strategic moves may have had an initial negative effect on revenue and profitability.
3. **Market Conditions**: The broader market conditions and competition in the weight loss and metabolic health solutions sector may have also played a role in RSLS's financial performance. For example, the company has faced competition from GLP-1 pharmaceuticals, which have impacted sales volume.

In conclusion, RSLS's failure to meet earnings forecasts in Q3 2024 can be attributed to a combination of revenue decline, strategic moves and financial challenges, and market conditions.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|RSLS|RSLS.O|ReShape Lifesciences|2023 Q4||1982000|186|
|RSLS|RSLS.O|ReShape Lifesciences|2024 Q1||1944000|186|
|RSLS|RSLS.O|ReShape Lifesciences|2024 Q2||1965000|186|
|RSLS|RSLS.O|ReShape Lifesciences|2024 Q3|-216000|2292000|186|