Allurion Announces Preliminary Fourth Quarter and Full Year 2023 Results and Provides 2024 Outlook
Generated substantial procedure growth in 2023 driven by best-in-class efficacy of balloon program; prioritizing key investments in strategic markets and digital innovations ahead of FDA milestones
“We believe procedure volume growth of
Preliminary Unaudited 2023 Financial Highlights
-
2023 full year revenue is expected to be in the range of
-$53 with gross profit sustained at$54 million 77% -78% of revenue -
Fourth quarter revenue is expected to be in the range of
-$8.1 , reflecting macroeconomic headwinds in certain markets leading to temporarily lower re-order rates during the period as distributors and accounts in certain markets adjusted their inventory levels$8.3 million -
Procedural volume grew by
30% compared to 2022, reflecting strong and growing demand for the Allurion Program, particularly inEurope where procedural volume grew by41% in 2023 compared to 2022 and44% in the fourth quarter compared to the same period in 2022 -
Cash balance as of December 31, 2023 of
reflects cash burn of$38 million in the fourth quarter and paydown of the term loan by$22 million , reducing outstanding principal to$20 million $40 million -
Expense reductions initiated in the fourth quarter of 2023 and continued in 2024 include a reduction in force of approximately
30% of headcount since December 2023, which is expected to reduce 2024 cash burn to approximately -$7 per quarter$8 million
2024 Outlook
-
Anticipated procedural volume growth of approximately
20% , despite a reduction in overall marketing spend, reflecting increased penetration in key direct markets and reallocation of marketing spend to more efficient channels -
Revenue guidance of
-$60 , reflecting growth of approximately$65 million 13% -23% year over year -
Expected gross margins of 77
-79% , reflecting durable pricing of our gastric balloon as well as initial commercialization efforts of the digital platform -
Targeted cash burn reduced to approximately
-$7 per quarter$8 million
Key 2024 Growth Catalysts
- Accelerated procedure volume growth across direct markets where Allurion has fully established direct sales and support models
- Release of new clinical data, including the AUDACITY FDA pivotal trial read-out expected by end of year, and additional data validating Allurion’s best-in-class weight loss and weight maintenance platform
- Increasing awareness and interest in non-invasive weight loss driven by the rise of GLP-1 drugs with the potential for sustained long-term tailwinds for Allurion
- Rapid scaling of Allurion’s digital capabilities including new commercial partnerships and expansion of existing high-margin deals, catalyzed by the release of its AI-powered Coach Iris platform and the addition of Brian Conyer to lead digital commercialization efforts
- Growth in existing strategic partnerships, including Allurion’s partnership with Medtronic
About Allurion
Allurion is dedicated to ending obesity. The Allurion Program is a weight-loss platform that combines the Allurion Gastric Balloon, the world’s first and only swallowable, procedure-less gastric balloon for weight loss, the Allurion Virtual Care Suite, including the Allurion Mobile App for consumers and Allurion Insights for healthcare providers featuring the Iris AI Platform, and the Allurion Connected Scale. The Allurion Virtual Care Suite is also available to providers separately from the Allurion Program to help customize, monitor, and manage weight-loss therapy for patients regardless of their treatment plan. The Allurion Gastric Balloon is an investigational device in
For more information about Allurion and the Allurion Virtual Care Suite, please visit www.allurion.com.
Estimated Preliminary Results for the Fourth Quarter and Fiscal Year Ended December 31, 2023 (Unaudited)
Set forth above are certain estimated preliminary financial results and other key business metrics for the fourth quarter and fiscal year ended December 31, 2023. These estimates are based on the information available to us at this time. Our actual results may vary from the estimated preliminary results presented here due to the completion of our financial closing procedures, final adjustments and other developments that may arise between now and the time the financial results for the fiscal year ended December 31, 2023 are finalized. The estimated preliminary financial results and other key business metrics have not been audited or reviewed by our independent registered public accounting firm. These estimates should not be viewed as a substitute for our full interim or annual financial statements. Accordingly, you should not place undue reliance on this preliminary data.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108129060/en/
US Media
Brian Ruby
ICR
(203) 682-8268
brian.ruby@icrinc.com
Global Media
Cedric Damour
PR Manager
+33 7 84 21 02 20
cdamour@allurion.com
Investors
Mike Cavanaugh, Investor Relations
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
Source: Allurion Technologies, Inc.