Motley Fool  May 11  Comment 
The company behind the CoolScuplting fat cell freezing platform delivers another quarter of growth. It's revising its revenue guidance higher, again.
Motley Fool  Feb 29  Comment 
The company behind the CoolScuplting fat cell freezing platform delivers another quarter of growth.
SeekingAlpha  Feb 29  Comment 
Benzinga  Feb 16  Comment 
Gogo Inc (NASDAQ: GOGO) shares fell 40.31 percent to reach a new 52-week low of $8.29 after a report from Star Telgram said that American Airlines Group Inc (NASDAQ: AAL) is suing Gogo and looking to switch Internet providers. Tonix...


ZELTIQ Aesthetics (NASDAQ:ZLTQ) is a medical device company which developed and sells a fat reduction device called CoolSculpting. The system selectively cools regions of fat to increase their rate of elimination by the body. The procedure is targeted for individuals with relatively small fat bulges rather than for obese individuals. This is because the technology is typically ineffective on obese individuals who require significant decreases in their body fat. Zeltiq makes money by selling the systems to physicians as well as charging procedure fees for each treatment performed.[1]

Business Overview

Zeltiq's total revenue for the full year 2010 was $25.5M. This compares to a total revenue of $1.6M in 2009. However, the company reported a net loss of 2010 of $13.5M. This is an improvement over the net loss of $17.6M in 2009. While Zeltiq has historically had a large research and development expense, this costs was surpassed by sales and marketing in 2010. [2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on October 18, 2011. The company offered 7M shares each for $13. This was below the $14-$16 price range. The company raised $91M through the deal. The lead managers of the deal were JP Morgan and Goldman.[3]

Trends & Forces

Reliance on luxury health

Because Zeltiq's devices aim to help individuals with relatively small fat bulges, the demand for their product is largely an additional luxury good. Unlike procedures aimed at obese individuals, the use of CoolSculpting does not prevent or solve an immediate health risk. As a result, demand for such a service will rest on individuals who are willing and able to pay for cosmetic improvements. By contrast, since the procedure is noninvasive and treats fat bulges, the potential demand for the product is likely quite large. [4][5]

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