Paragon 28 Announces Preliminary Unaudited Revenue for Fourth Quarter and Full Year 2023

Rhea-AI Summary

Paragon 28, Inc. (NYSE: FNA) announced preliminary unaudited net revenue for the fourth quarter and full year ended December 31, 2023. The fourth quarter is expected to be in the range of $60.3 to $60.6 million, with a reported growth of approximately 17% to 18% compared to the same period in 2022. The full year net revenue is expected to be in the range of $216.1 to $216.4 million, representing reported and constant currency growth of approximately 19% and 20%, respectively, compared to 2022. The financial results are preliminary and subject to finalization.

Insights

Financial Analyst

The disclosed preliminary unaudited net revenue figures for Paragon 28 indicate a significant year-over-year growth, both for the fourth quarter and the full fiscal year of 2023. A reported growth of approximately 17% to 18% for Q4 and 19% to 20% for the full year suggests the company is expanding at a healthy rate, which is a positive signal to investors and stakeholders. This performance, particularly in a specialized market like foot and ankle orthopedics, can be attributed to effective market penetration, product acceptance and possibly successful marketing and sales strategies.

It is important to note that the lack of significant foreign currency impact suggests stable international revenue streams, which is crucial given the current volatility in global currency markets. The constant currency growth figure provides a clearer picture of the company's operational performance by eliminating the effects of currency fluctuations. Investors should monitor the final audited results for any adjustments, but the preliminary data sets optimistic expectations for the company's financial health and future performance.

Medical Device Market Analyst

The foot and ankle orthopedic segment is a niche but growing area within the medical device industry. Paragon 28's reported revenue growth is particularly noteworthy in this context, as it indicates the company's ability to capture market share and possibly outperform industry averages. The company's focus on this specialty area may have allowed it to develop targeted solutions that meet unmet needs, driving adoption among surgeons and healthcare providers.

Investors should consider the company's product pipeline and any recent or upcoming product launches, as these can be critical drivers for sustained growth. Additionally, as healthcare continues to move towards personalized medicine, Paragon 28's specialization might give it a competitive advantage in developing tailored solutions for foot and ankle treatments, which could further contribute to its growth trajectory.

Healthcare Economist

The healthcare sector is often seen as recession-proof, but it is not immune to economic downturns. Paragon 28's robust growth amidst global economic uncertainties could be indicative of strong sector fundamentals and the essential nature of orthopedic procedures. The company's performance might also reflect broader trends in the healthcare industry, such as an aging population and increased prevalence of chronic conditions that require orthopedic interventions.

From an economic standpoint, Paragon 28's growth contributes to the overall health of the medical device sector and can have multiplier effects on the economy, including job creation and technological advancements. However, investors should also be aware of regulatory changes, reimbursement policies and healthcare spending trends, as these factors can significantly impact the company's future revenue and profit margins.

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Paragon 28, Inc. (NYSE: FNA) (“Paragon 28” or “P28”), a leading medical device company exclusively focused on the foot and ankle orthopedic market, today announced a range of its preliminary unaudited net revenue for the fourth quarter and full year ended December 31, 2023.

Preliminary unaudited net revenue for the fourth quarter of 2023 is expected to be in a range of $60.3 to $60.6 million, representing reported growth of approximately 17% to 18% compared to the fourth quarter of 2022. Foreign currency impact on fourth quarter 2023 reported net revenue growth was not significant.

Preliminary unaudited net revenue for the full year of 2023 is expected to be in a range of $216.1 to $216.4 million, representing reported and constant currency growth of approximately 19% and 20%, respectively, compared to the full year of 2022.

Our estimated unaudited financial results as of and for the fourth quarter and full fiscal year ended December 31, 2023, presented above are preliminary and are subject to the close of the quarter and year, completion of our quarter-end and year-end closing procedures and further financial review. Our independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information. Our actual results may differ from these estimates as a result of the completion of our quarter-end and year-end closing procedures, review adjustments and other developments that may arise between now and the time our financial results for the fourth quarter and year are finalized.

“We closed out 2023 with another solid quarter and I am very pleased with our 20 percent net revenue growth for 2023. Looking at 2024 and beyond, I could not be more excited to continue our mission seeking to improve foot and ankle patient outcomes,” said Albert DaCosta, Chairman and CEO of Paragon 28.

About Paragon 28, Inc.

Based in Englewood, Colo., Paragon 28, is a leading medical device company exclusively focused on the foot and ankle orthopedic market and is dedicated to improving patient lives. From the onset, Paragon 28® has provided innovative orthopedic solutions, procedural approaches and instrumentation that cover a wide range of foot and ankle ailments including fracture fixation, forefoot, ankle, progressive collapsing foot deformity (PCFD) or flatfoot, charcot foot and orthobiologics. The company designs products with both the patient and surgeon in mind, with the goal of improving outcomes, reducing ailment recurrence and complication rates, and making the procedures simpler, consistent, and reproducible.

Forward Looking Statements

Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: Paragon 28’s potential to shape a better future for foot and ankle patients and its estimated ranges of net revenue for the fourth quarter and full-year of 2023. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware. Forward‐looking statements should not be read as a guarantee of future performance or results and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These forward‐looking statements are based on Paragon 28’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward‐looking statements as a result of these risks and uncertainties. These risks and uncertainties are described more fully in the section titled “Risk Factors” in Paragon 28’s filings with the Securities and Exchange Commission (the “SEC”), including Paragon 28’s annual report on Form 10-K filed with the SEC on March 2, 2023. Paragon 28 does not undertake any obligation to update forward‐looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward‐looking statements contained herein. These forward-looking statements should not be relied upon as representing Paragon 28’s views as of any date subsequent to the date of this press release. Paragon 28’s preliminary unaudited estimated revenue for the quarter ended December 31, 2023 and the year ended December 31, 2023 are not necessarily indicative of our operating results for any future periods.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240108323890/en/

Investor Contact:

Matthew Brinckman

Senior Vice President, Strategy, and Investor Relations

Phone: (741) 336-0435

mbrinckman@paragon28.com

Source: Paragon 28, Inc.

FAQ

What is Paragon 28, Inc.'s ticker symbol?

The ticker symbol for Paragon 28, Inc. is FNA on the NYSE.

What is the expected net revenue range for the fourth quarter of 2023?

The expected net revenue range for the fourth quarter of 2023 is $60.3 to $60.6 million.

Who is the Chairman and CEO of Paragon 28, Inc.?

Albert DaCosta is the Chairman and CEO of Paragon 28, Inc.

What is the reported growth in net revenue for the fourth quarter of 2023 compared to 2022?

The reported growth in net revenue for the fourth quarter of 2023 is approximately 17% to 18% compared to the same period in 2022.

What is the expected net revenue range for the full year of 2023?

The expected net revenue range for the full year of 2023 is $216.1 to $216.4 million.