Allurion Reports First Quarter 2024 Financial Results and Provides Business Update
Allurion Technologies (NYSE: ALUR) announced its Q1 2024 financial results with a revenue of $9.4 million, a 14% increase from Q4 2023 but a decrease from $14.1 million in Q1 2023. Procedural volume rose 12% year-over-year and 22% sequentially. Cash burn decreased to $8.4 million from $22 million in Q4 2023. Notable developments include treating the first NHS patient with the Allurion Balloon, launching the VCS digital platform in the U.S., and securing $48 million in financing. Operating expenses were reduced significantly, but a year-over-year revenue decline and lower gross profit margins were noted.
- Q1 2024 revenue increased 14% from Q4 2023, reaching $9.4 million.
- Procedural volume increased 12% year-over-year and 22% sequentially.
- Cash burn reduced to $8.4 million in Q1 2024 from $22 million in Q4 2023.
- Treated first NHS patient with Allurion Balloon.
- Launched VCS digital platform in the U.S.
- Secured $48 million convertible senior secured note financing.
- Sales and marketing expenses decreased by $5.7 million to $6.2 million.
- Research and development expenses decreased by $2.1 million to $5.7 million.
- Loss from operations reduced to $11.4 million from $13.9 million in Q1 2023.
- Revenue decreased from $14.1 million in Q1 2023 to $9.4 million in Q1 2024.
- Gross profit margin dropped to 73% from 79% in Q1 2023.
- General and administrative expenses increased by $1.1 million to $6.4 million.
- Year-over-year revenue decline due to macroeconomic headwinds and inventory adjustments.
Insights
Allurion Technologies reported a first quarter 2024 revenue of
On the positive side, cash burn decreased substantially, from
Operational expenses were also strategically reduced, with sales and marketing expenses cut by
Conclusion: While there are positive signs in terms of procedural volume growth and cost management, the decline in year-over-year revenue and increased G&A expenses warrant close monitoring.
The increase in procedural volume by
Also noteworthy is the company's expansion into the UK with the NHS using the Allurion Balloon for pre-surgical weight loss. This adoption by a major health service provider can serve as a validation of their product's clinical efficacy, potentially opening doors to further collaborations and market penetration.
However, the company faces pressure from macroeconomic headwinds, impacting reorder rates and sales management strategies. The reliance on distributors adjusting their inventories suggests that Allurion may need to focus on direct-to-consumer channels or more stable distributor relationships to mitigate these risks.
Conclusion: Market demand remains robust and the company's strategic tech investments and NHS collaboration hold promise. However, economic factors and distributor dependencies pose ongoing challenges.
The publication of a randomized, double-blind study demonstrating significant reductions in serious comorbidities, such as type 2 diabetes, hypertension and obstructive sleep apnea, is a notable milestone for Allurion. These findings can strengthen the clinical credibility of the Allurion Program, underpinning its holistic approach to obesity management.
Additionally, the reduction in cash burn and operational expenses aligns with the company's strategic focus on improving efficiency while maintaining clinical excellence. This balance is important in the highly competitive and scrutinized healthcare sector.
Nevertheless, the company must maintain rigorous clinical evidence and continue investing in R&D to stay ahead of competitors and ensure long-term sustainability. The upcoming AUDACITY trial results will be critical in determining the future clinical and market viability of their offerings.
Conclusion: The clinical trial results bolster Allurion's position in the obesity management space. Continued focus on clinical validation is essential for long-term success.
Recent Company Highlights
-
First quarter revenue of
$9.4 million 14% from the fourth quarter of 2023 and in line with preannouncement on April 30 -
Procedural volume, as estimated through new app users, increased
12% year-over-year from the first quarter of 2023 and22% sequentially from the fourth quarter of 2023; in line with preannouncement on April 30 -
Cash burn of
$8.4 million $22 million $30 million -
Treated the first patient through the
U.K. National Health Service (NHS) with the Allurion Balloon for pre-surgical weight loss -
Launched the Virtual Care Suite (VCS) digital platform in
the United States , a technology platform that includes remote patient monitoring, predictive analytics, telehealth, and an AI-powered weight loss coach - Announced the publication of a randomized, double-blind study the results of which demonstrated significant reductions in serious comorbidities, including type 2 diabetes, hypertension, and obstructive sleep apnea in just four months on the Allurion Program
-
Closed
$48 million
“Our strong performance in the first quarter was driven by continued growth in procedural volume, leading to our highest volume in any quarter to date,” said Dr. Shantanu Gaur, Founder and Chief Executive Officer. “We believe this increase in procedural volume reflects the strong demand for the Allurion Program and demonstrates how we are poised to capitalize on the attention being paid to the obesity management space. In parallel, we improved our execution and increased efficiency across our operations, leading to a reduction in our quarterly cash burn and operating expenses by
Gaur continued, “We believe the differentiated approach of the Allurion Program – with our procedureless balloon complemented by the VCS powered by Coach Iris – positions us well to not only compete against, but also be complimentary to, other players in the space. With the launch of the VCS in
First Quarter Financial Results
Total revenue for the quarter ended March 31, 2024 was
Gross profit as a percent of sales was
Sales and marketing expenses for the first quarter decreased approximately
Research and development expenses for the first quarter decreased approximately
General and administrative expenses for the first quarter increased approximately
Loss from operations for the first quarter was
As of March 31, 2024, cash and cash equivalents totaled
2024 Financial Outlook
For full year 2024, Allurion reiterates the financial guidance it previously published:
-
Procedural volume growth of
20% , reflecting increased penetration in key direct markets and reallocation of marketing spend to more efficient channels -
Revenue of
$60 $65 million -23% growth year-over-year -
Gross margins of 77
-79% , reflecting durable pricing of our gastric balloon as well as initial commercialization efforts for the Allurion Virtual Care Suite SaaS product -
Cash burn of approximately
$30 million
Conference Call and Webcast Details
Company management will host a conference call to discuss financial results and provide a business update on May 14, 2024 at 8:30 AM ET.
To access the conference call by telephone, please dial (888) 330-3417 (domestic) or +1 646 960 0804 (international) and use Conference ID 1905455. To listen to the conference call via live audio webcast, please visit the Events section of Allurion’s Investor Relations website at Allurion - Events & Presentations.
A replay of the conference call will be available by telephone by dialing (800) 770 2030 and using Access Code 1905455. The archived webcast will also be available on Allurion’s Investor Relations website mentioned above.
About Allurion
Allurion is dedicated to ending obesity. The Allurion Program is a weight loss platform that features the Allurion Gastric Balloon, the world’s first and only swallowable, procedure-less intragastric balloon for weight loss, and offers access to the Allurion Virtual Care Suite, including the Allurion Mobile App for consumers, Allurion Insights for health care providers featuring the Coach 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: gastric balloon, surgical, medical or nutritional. 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
Allurion is a trademark of Allurion Technologies, Inc. in
Forward-Looking Statements
This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although Allurion believes that it has a reasonable basis for each forward-looking statement contained in this press release, Allurion cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements regarding: the financial outlook for 2024, including driving procedural volume growth, revenue growth, durable pricing, and the impact of cost reduction initiatives on cash burn and operational flexibility; Allurion’s ability to complete the AUDACITY trial, receive clinical data at the end of this year and support a PMA submission; the impact of investments and initiatives on distribution of the Allurion Program, advancement of its artificial intelligence platform, and improvement of patient outcomes; and the market and demand for Allurion’s products and weight-loss solutions, including GLP-1 drugs and elective procedures.
Allurion cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, general economic, political and business conditions; the ability of Allurion to obtain regulatory approval for, and successfully commercialize, the Allurion Program; the timing of, and results from, its clinical studies and trials; the evolution of the markets in which Allurion competes; and the impact of GLP-1 drugs; the ability of Allurion to maintain its listing on the New York Stock Exchange; the effect of COVID-19, the
Unaudited Condensed Consolidated Statements of Operations
|
||||||||
|
|
Three Months Ended March 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
9,386 |
|
|
$ |
14,071 |
|
Cost of revenue |
|
|
2,520 |
|
|
|
2,940 |
|
Gross profit |
|
|
6,866 |
|
|
|
11,131 |
|
Operating expenses: |
|
|
|
|
||||
Sales and marketing |
|
|
6,145 |
|
|
|
11,864 |
|
Research and development |
|
|
5,725 |
|
|
|
7,852 |
|
General and administrative |
|
|
6,386 |
|
|
|
5,306 |
|
Total operating expenses: |
|
|
18,256 |
|
|
|
25,022 |
|
Loss from operations |
|
|
(11,390 |
) |
|
|
(13,891 |
) |
Other (expense) income: |
|
|
|
|
||||
Interest expense |
|
|
(1,931 |
) |
|
|
(2,237 |
) |
Changes in fair value of warrants |
|
|
3,131 |
|
|
|
(1,475 |
) |
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option |
|
|
1,490 |
|
|
|
— |
|
Changes in fair value of earn-out liabilities |
|
|
14,190 |
|
|
|
— |
|
Other income (expense), net |
|
|
172 |
|
|
|
(164 |
) |
Total other income (expense): |
|
|
17,052 |
|
|
|
(3,876 |
) |
Income (loss) before income taxes |
|
|
5,662 |
|
|
|
(17,767 |
) |
Provision for income taxes |
|
|
(76 |
) |
|
|
(34 |
) |
Net income (loss) |
|
|
5,586 |
|
|
|
(17,801 |
) |
Cumulative undeclared preferred dividends |
|
|
— |
|
|
|
(717 |
) |
Net income (loss) attributable to common shareholders |
|
$ |
5,586 |
|
|
$ |
(18,518 |
) |
Net income (loss) per share |
|
|
|
|
||||
Basic |
|
$ |
0.12 |
|
|
$ |
(0.68 |
) |
Diluted |
|
$ |
0.11 |
|
|
$ |
(0.68 |
) |
Weighted-average shares outstanding |
|
|
|
|
||||
Basic |
|
|
47,779,350 |
|
|
|
27,087,174 |
|
Diluted |
|
|
49,190,474 |
|
|
|
27,087,174 |
|
Unaudited Condensed Consolidated Balance Sheets
|
||||||||
|
|
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
29,682 |
|
|
$ |
38,037 |
|
Accounts receivable, net of allowance of doubtful accounts of |
|
|
16,159 |
|
|
|
18,194 |
|
Inventory, net |
|
|
5,631 |
|
|
|
6,171 |
|
Prepaid expenses and other current assets |
|
|
2,167 |
|
|
|
2,414 |
|
Total current assets |
|
|
53,639 |
|
|
|
64,816 |
|
Property and equipment, net |
|
|
3,180 |
|
|
|
3,381 |
|
Right-of-use asset |
|
|
2,659 |
|
|
|
3,010 |
|
Other long-term assets |
|
|
510 |
|
|
|
505 |
|
Total assets |
|
$ |
59,988 |
|
|
$ |
71,712 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
11,944 |
|
|
$ |
10,379 |
|
Current portion of term loan |
|
|
38,957 |
|
|
|
38,643 |
|
Current portion of lease liabilities |
|
|
814 |
|
|
|
908 |
|
Accrued expenses and other current liabilities |
|
|
14,506 |
|
|
|
15,495 |
|
Total current liabilities |
|
|
66,221 |
|
|
|
65,425 |
|
Public warrant liabilities |
|
|
3,329 |
|
|
|
5,943 |
|
Revenue Interest Financing liability |
|
|
35,000 |
|
|
|
36,200 |
|
Earn-out liabilities |
|
|
9,800 |
|
|
|
23,990 |
|
Lease liabilities, net of current portion |
|
|
2,011 |
|
|
|
2,306 |
|
Other liabilities |
|
|
9,789 |
|
|
|
8,335 |
|
Total liabilities |
|
|
126,150 |
|
|
|
142,199 |
|
Commitments and Contingencies |
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
|
143,946 |
|
|
|
143,007 |
|
Accumulated other comprehensive loss |
|
|
(2,900 |
) |
|
|
(700 |
) |
Accumulated deficit |
|
|
(207,213 |
) |
|
|
(212,799 |
) |
Total stockholders’ deficit |
|
|
(66,162 |
) |
|
|
(70,487 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
59,988 |
|
|
$ |
71,712 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514441955/en/
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.
FAQ
What were Allurion's Q1 2024 financial results?
How did Allurion's procedural volume change in Q1 2024?
What was Allurion's cash burn in Q1 2024?
What new initiatives did Allurion launch in Q1 2024?
What financing did Allurion secure in Q1 2024?
How did Allurion's operating expenses change in Q1 2024?
What was Allurion's gross profit margin in Q1 2024?
What were Allurion's general and administrative expenses in Q1 2024?
