Treace Medical Concepts Reports Third Quarter 2024 Financial Results
Treace Medical Concepts (TMCI) reported Q3 2024 financial results with revenue of $45.1 million, up 11% year-over-year. The company posted a net loss of ($15.4) million, improving from ($17.5) million in Q3 2023. Adjusted EBITDA loss improved 45% to ($5.1) million from ($9.2) million year-over-year. The company announced entry into the high-volume osteotomy market with Nanoplasty™ 3D Minimally Invasive Bunion Correction™ Procedure. Gross margin was 80.1%. Cash position stood at $82.8 million as of September 30, 2024. The company revised its full-year 2024 revenue guidance to $204-211 million, representing 9-13% growth.
Treace Medical Concepts (TMCI) ha riportato i risultati finanziari del terzo trimestre 2024, con un fatturato di 45,1 milioni di dollari, in aumento dell'11% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di (15,4 milioni di dollari), in miglioramento rispetto ai (17,5 milioni di dollari) del terzo trimestre 2023. La perdita dell'EBITDA rettificato è migliorata del 45%, passando da (9,2 milioni di dollari) a (5,1 milioni di dollari) rispetto all'anno precedente. L'azienda ha annunciato l'ingresso nel mercato delle osteotomie ad alto volume con la Procedura Nanoplasty™ 3D per la Correzione Minimamente Invasiva della Bunion™. Il margine lordo si è attestato all'80,1%. La posizione di cassa ammontava a 82,8 milioni di dollari al 30 settembre 2024. L'azienda ha rivisto le previsioni di fatturato per l'intero anno 2024 a 204-211 milioni di dollari, corrispondente a una crescita del 9-13%.
Treace Medical Concepts (TMCI) informó los resultados financieros del tercer trimestre de 2024 con ingresos de 45,1 millones de dólares, un aumento del 11% interanual. La compañía publicó una pérdida neta de (15,4 millones de dólares), mejorando respecto a los (17,5 millones de dólares) del tercer trimestre de 2023. La pérdida de EBITDA ajustado mejoró un 45%, pasando de (9,2 millones de dólares) a (5,1 millones de dólares) en comparación con el año anterior. La compañía anunció su entrada en el mercado de osteotomías de alto volumen con el Procedimiento Nanoplasty™ 3D para la Corrección Mínimamente Invasiva del Hallux Valgus™. El margen bruto fue del 80,1%. La posición de efectivo se situó en 82,8 millones de dólares al 30 de septiembre de 2024. La compañía revisó su pronóstico de ingresos para todo el año 2024 a 204-211 millones de dólares, lo que representa un crecimiento del 9-13%.
Treace Medical Concepts (TMCI)는 2024년 3분기 재무 결과를 발표했으며, 4,510만 달러의 수익을 기록하여 전년 대비 11% 증가했습니다. 이 회사는 (1,540만 달러)의 순손실을 기록했으며, 이는 2023년 3분기의 (1,750만 달러)에서 개선된 수치입니다. 조정된 EBITDA 손실은 전년 대비 45% 개선되어 (
Treace Medical Concepts (TMCI) a publié ses résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 45,1 millions de dollars, en hausse de 11% par rapport à l'année précédente. La société a affiché une perte nette de (15,4 millions de dollars), en amélioration par rapport à (17,5 millions de dollars) au troisième trimestre 2023. La perte d'EBITDA ajusté a été améliorée de 45%, passant de (9,2 millions de dollars) à (5,1 millions de dollars) d'une année sur l'autre. L'entreprise a annoncé son entrée sur le marché des ostéotomies à fort volume avec la procédure de correction de l'hallux valgus minimalement invasive Nanoplasty™ 3D. La marge brute était de 80,1%. La position de trésorerie s'élevait à 82,8 millions de dollars au 30 septembre 2024. L'entreprise a révisé ses prévisions de revenus pour l'année 2024 à 204-211 millions de dollars, représentant une croissance de 9-13%.
Treace Medical Concepts (TMCI) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Umsatz von 45,1 Millionen Dollar, was einem Anstieg von 11% im Jahresvergleich entspricht. Das Unternehmen wies einen Nettverlust von (15,4 Millionen Dollar) aus, der sich im Vergleich zu (17,5 Millionen Dollar) im dritten Quartal 2023 verbessert hat. Der Verlust des angepassten EBITDA verbesserte sich um 45% auf (5,1 Millionen Dollar) gegenüber (9,2 Millionen Dollar) im Jahresvergleich. Das Unternehmen kündigte den Einstieg in den Hochvolumen-Osteotomiemarkt mit dem Nanoplasty™ 3D minimalinvasiven Hallux-Valgus-Korrekturverfahren an. Die Bruttomarge betrug 80,1%. Die Liquiditätsposition betrug zum 30. September 2024 82,8 Millionen Dollar. Das Unternehmen hat seine Prognose für den Umsatz des Gesamtjahres 2024 auf 204-211 Millionen Dollar revidiert, was einem Wachstum von 9-13% entspricht.
- Revenue increased 11% year-over-year to $45.1 million
- Net loss improved from ($17.5M) to ($15.4M)
- Adjusted EBITDA loss improved 45% year-over-year
- Strong gross margin at 80.1%
- Healthy cash position of $82.8 million
- Upward revision of revenue guidance
- Operating expenses increased to $51.3M from $50.6M
- Continued net losses of ($15.4M)
- Slight decline in gross margin from 80.4% to 80.1%
Insights
The Q3 results present a mixed picture for Treace Medical. Revenue growth of
Key positives include maintained strong gross margins at
The launch of Nanoplasty™ into the high-volume osteotomy market represents a strategic expansion opportunity, while the growing patent portfolio (67 U.S. patents) provides competitive protection. Investors should monitor customer adoption rates of new technologies and progress toward positive EBITDA.
PONTE VEDRA, Fla., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Treace Medical Concepts, Inc. ("Treace" or the "Company") (NasdaqGS: TMCI), a medical technology company driving a fundamental shift in the surgical treatment of bunions and related midfoot deformities through its flagship Lapiplasty® and Adductoplasty® Procedures, today reported financial results for the third quarter ended September 30, 2024.
Recent Highlights
- Revenue of
$45.1 million in third quarter 2024 increased11% over same period in 2023 - Third quarter 2024 net loss was (
$15.4) million compared to ($17.5) million for same period in 2023. Adjusted EBITDA loss improved45% to ($5.1) million in the third quarter 2024 compared to ($9.2) million for the same period in 2023 - Announces first entry into high volume osteotomy market with Nanoplasty™ 3D Minimally Invasive Bunion Correction™ Procedure and reaffirms plan to release second minimally invasive technology platform later in the fourth quarter
- Focused R&D innovation pipeline is now poised to significantly expand technology and procedure offerings through 2025 and beyond
- Files patent infringement and unfair competition suit to protect Lapiplasty® bunion technology. Expanded patent portfolio now includes 67 granted U.S. patents, 24 granted patents outside of the U.S. and 85 pending U.S. patent applications
“Our third quarter results reflect our focused execution to drive growth in the business while steadily improving our operating leverage. In addition, we are excited to announce the market release of Nanoplasty™ 3D MIS System, our first entry into the osteotomy market,” said John T. Treace, CEO and Founder of Treace. “We believe this innovative new system, combined with our market leading Lapiplasty®, Adductoplasty® and robust pipeline of future technology and procedure offerings, will further drive penetration into the overall bunion market and continue to expand our surgeon customer base through 2025 and beyond.”
Third Quarter 2024 Financial Results
Revenue for the third quarter of 2024 was
Gross profit for the third quarter of 2024 was
Total operating expenses were
Third quarter 2024 net loss was (
Cash, cash equivalents, and marketable securities totaled
Financial Outlook
The Company is revising full-year 2024 revenue guidance to
The Company continues to expect our Adjusted EBITDA loss to decrease by approximately
* A reconciliation of Adjusted EBITDA to GAAP net loss on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.
Webcast and Conference Call Details
Treace will host a conference call today, November 5, 2024, at 4:30 p.m. ET to discuss its third quarter 2024 financial results. Investors interested in listening to the conference call may do so by registering. Once registered, participants will receive dial-in numbers and a unique pin to join the call and ask questions. The live webcast of the conference call will be available on the Investor Relations section of the Company’s website at investors.treace.com. The webcast will be archived on the website following the completion of the call.
Use of Non-GAAP Financial Measures
To supplement the financial results presented in accordance with GAAP, this earnings release presents Adjusted EBITDA, which the Company defines as net loss before depreciation and amortization expense, interest income, interest expense, taxes, share-based compensation expense, acquisition-related costs, restructuring costs, customer credit loss, and debt extinguishment loss. Non-GAAP financial measures such as Adjusted EBITDA are presented in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management uses non-GAAP financial measures to evaluate the Company’s operating performance and trends, as well as for making planning decisions. The Company believes that Adjusted EBITDA helps to identify underlying trends in the Company’s business that may otherwise be masked by the effect of the income and expenses and other items that it excludes in its calculation of Adjusted EBITDA. Accordingly, the Company believes this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the Company’s operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by the Company’s management in their financial and operational decision-making. The Company also presents this non-GAAP financial measure because it believes investors, analysts and rating agencies consider it to be a useful metric in measuring the Company’s performance against other companies and its ability to meet its debt service obligations.
There are limitations related to the use of non-GAAP financial measures such as Adjusted EBITDA because they are not prepared in accordance with GAAP, may exclude significant income and expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation between GAAP and non-GAAP results is presented below.
Forward-Looking Statements
This press release and statements made during the Company’s earnings call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, the Company’s: revenue guidance and estimated revenue growth rates for full-year 2024; estimated quarterly revenue growth rates; sufficient balance sheet strength and flexibility to continue effectively executing on its strategic investments and growth initiatives for the foreseeable future; anticipated liquidity; expected rate of Adjusted EBITDA improvement; ability to effectively respond to and mitigate the impact of challenges in the current market environment, including in response to increased competition and accelerating adoption of MIS osteotomy solutions; anticipated future product launches and the timing of such product launches, including its planned 3D MIS osteotomy platforms and the number and pace of new product innovations through 2025; ability to increase its procedure volumes, expand its surgeon customer base, provide a suite of technologies to address the evolving needs of bunion surgeons and patients, and increase penetration into the overall bunion market; strategic investments supporting its market position and long-term outlook; ability to protect and enforce its intellectual property rights, including through its recently filed patent infringement and unfair competition suit; success in defending against infringement of its intellectual property by third parties, including its competitors; expected seasonality; and anticipated pace of growth in the foot and ankle market. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Treace’s public filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 27, 2024, and its subsequent SEC filings. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise. The Company’s results for the quarter ended September 30, 2024 are not necessarily indicative of its operating results for any future periods.
Internet Posting of Information
Treace routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.treace.com. The Company encourages investors and potential investors to consult the Treace website regularly for important information about Treace.
About Treace Medical Concepts
Treace Medical Concepts, Inc. is a medical technology company with the goal of advancing the standard of care for the surgical management of bunion and related midfoot deformities. Bunions are complex 3-dimensional deformities that originate from an unstable joint in the middle of the foot and affect approximately 67 million Americans, of which Treace estimates 1.1 million are annual surgical candidates. Treace has pioneered and patented the Lapiplasty® 3D Bunion Correction® System – a combination of instruments, implants, and surgical methods designed to surgically correct all three planes of the bunion deformity and secure the unstable joint, addressing the root cause of the bunion and helping patients get back to their active lifestyles. To further support the needs of bunion patients, Treace has introduced its Adductoplasty® Midfoot Correction System, designed for reproducible surgical correction of midfoot deformities. The Company continues to expand its footprint in the foot and ankle market with the introduction of its SpeedPlate™ Rapid Compression Implants, an innovative fixation platform with broad versatility across Lapiplasty® and Adductoplasty® procedures, as well as other common bone fusion procedures of the foot. For more information, please visit www.treace.com.
To learn more about Treace, connect with us on LinkedIn, X, Facebook and Instagram.
Contacts:
Treace Medical Concepts
Mark L. Hair
Chief Financial Officer
mhair@treace.net
(904) 373-5940
Investors:
Gilmartin Group
Vivian Cervantes
IR@treace.net
Treace Medical Concepts, Inc.
Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 45,086 | $ | 40,758 | $ | 140,649 | $ | 124,906 | ||||||||
| Cost of goods sold | 8,954 | 7,998 | 27,862 | 23,712 | ||||||||||||
| Gross profit | 36,132 | 32,760 | 112,787 | 101,194 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 32,775 | 33,542 | 110,784 | 100,970 | ||||||||||||
| Research and development | 4,963 | 4,350 | 15,379 | 11,288 | ||||||||||||
| General and administrative | 13,528 | 12,686 | 42,108 | 33,582 | ||||||||||||
| Total operating expenses | 51,266 | 50,578 | 168,271 | 145,840 | ||||||||||||
| Loss from operations | (15,134 | ) | (17,818 | ) | (55,484 | ) | (44,646 | ) | ||||||||
| Interest income | 1,067 | 1,570 | 3,978 | 5,017 | ||||||||||||
| Interest expense | (1,313 | ) | (1,296 | ) | (3,942 | ) | (3,863 | ) | ||||||||
| Other income, net | 20 | 23 | 206 | 246 | ||||||||||||
| Other non-operating income (expense), net | (226 | ) | 297 | 242 | 1,400 | |||||||||||
| Net loss | $ | (15,360 | ) | $ | (17,521 | ) | $ | (55,242 | ) | $ | (43,246 | ) | ||||
| Other comprehensive income (loss) | ||||||||||||||||
| Unrealized gain (loss) on marketable securities | $ | 217 | $ | 71 | $ | 28 | $ | (121 | ) | |||||||
| Comprehensive loss | $ | (15,143 | ) | $ | (17,450 | ) | $ | (55,214 | ) | $ | (43,367 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.25 | ) | $ | (0.28 | ) | $ | (0.89 | ) | $ | (0.71 | ) | ||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 62,229,463 | 61,562,494 | 62,035,293 | 60,566,655 | ||||||||||||
Treace Medical Concepts, Inc.
Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 12,110 | $ | 12,982 | ||||
| Marketable securities, short-term | 70,689 | 110,216 | ||||||
| Accounts receivable, net of allowance for credit losses of | 24,177 | 38,063 | ||||||
| Inventories | 43,611 | 29,245 | ||||||
| Prepaid expenses and other current assets | 7,015 | 7,853 | ||||||
| Total current assets | 157,602 | 198,359 | ||||||
| Property and equipment, net | 25,168 | 22,298 | ||||||
| Intangible assets, net of accumulated amortization of | 8,312 | 9,025 | ||||||
| Goodwill | 12,815 | 12,815 | ||||||
| Operating lease right-of-use assets | 8,569 | 9,264 | ||||||
| Other non-current assets | 458 | 146 | ||||||
| Total assets | $ | 212,924 | $ | 251,907 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 18,649 | $ | 11,835 | ||||
| Accrued liabilities | 8,098 | 10,458 | ||||||
| Accrued commissions | 5,347 | 10,759 | ||||||
| Accrued compensation | 5,598 | 7,549 | ||||||
| Other liabilities | 571 | 4,432 | ||||||
| Total current liabilities | 38,263 | 45,033 | ||||||
| Long-term debt, net of discount of | 53,231 | 53,008 | ||||||
| Operating lease liabilities, net of current portion | 16,487 | 15,891 | ||||||
| Other long-term liabilities | 37 | 37 | ||||||
| Total liabilities | 108,018 | 113,969 | ||||||
| Commitments and contingencies (Note 7) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 62 | 62 | ||||||
| Additional paid-in capital | 294,392 | 271,973 | ||||||
| Accumulated deficit | (189,489 | ) | (134,247 | ) | ||||
| Accumulated other comprehensive (loss) income | 191 | 163 | ||||||
| Treasury stock, at cost; 19,604 and 1,218 shares as of September 30, 2024 and December 31, 2023, respectively | (250 | ) | (13 | ) | ||||
| Total stockholders’ equity | 104,906 | 137,938 | ||||||
| Total liabilities and stockholders’ equity | $ | 212,924 | $ | 251,907 | ||||
Treace Medical Concepts, Inc.
Statements of Cash Flows
(in thousands)
(unaudited)
| Nine Months Ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (55,242 | ) | $ | (43,246 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation and amortization expense | 6,182 | 3,583 | ||||||
| Provision for allowance for credit losses | 2,381 | 79 | ||||||
| Share-based compensation expense | 22,048 | 11,480 | ||||||
| Non-cash lease expense | 607 | 1,868 | ||||||
| Amortization of debt issuance costs | 223 | 223 | ||||||
| Accretion (amortization) of discount (premium) on marketable securities, net | (918 | ) | (1,031 | ) | ||||
| Other, net | 180 | 164 | ||||||
| Net changes in operating assets and liabilities, net of acquisitions | ||||||||
| Accounts receivable | 11,505 | 4,121 | ||||||
| Inventory | (14,366 | ) | (9,915 | ) | ||||
| Prepaid expenses and other assets | 838 | (1,028 | ) | |||||
| Other non-current assets | (312 | ) | — | |||||
| Operating lease liabilities | (147 | ) | 497 | |||||
| Accounts payable | 6,814 | 12 | ||||||
| Accrued liabilities | (12,753 | ) | (1,954 | ) | ||||
| Other, net | — | 40 | ||||||
| Net cash provided by (used in) operating activities | (32,960 | ) | (35,107 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of available-for-sale marketable securities | (52,890 | ) | (140,075 | ) | ||||
| Sales and maturities of available-for-sale marketable securities | 93,363 | 82,979 | ||||||
| Purchases of property and equipment | (8,519 | ) | (9,210 | ) | ||||
| Acquisition, net of cash acquired | — | (20,000 | ) | |||||
| Net cash provided by (used in) investing activities | 31,954 | (86,306 | ) | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from issuance of common stock from public offering, net of issuance costs and underwriting discount of | — | 107,527 | ||||||
| Proceeds from exercise of employee stock options | 371 | 1,691 | ||||||
| Taxes from withheld shares | (237 | ) | — | |||||
| Net cash provided by (used in) financing activities | 134 | 109,218 | ||||||
| Net increase (decrease) in cash and cash equivalents | (872 | ) | (12,195 | ) | ||||
| Cash and cash equivalents at beginning of period | 12,982 | 19,473 | ||||||
| Cash and cash equivalents at end of period | $ | 12,110 | $ | 7,278 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest | $ | 3,732 | $ | 3,863 | ||||
| Operating lease right-of-use asset and lease liability adjustment due to lease incentive | $ | 88 | $ | (22 | ) | |||
| Noncash investing activities | ||||||||
| Unrealized (gains) losses, net on marketable securities | $ | (28 | ) | $ | 121 | |||
| Unsettled marketable security purchase and payable to broker | $ | — | $ | (1,100 | ) | |||
| Unsettled matured marketable security and receivable from broker | $ | — | $ | 6,000 | ||||
Treace Medical Concepts, Inc.
Reconciliation of GAAP Net Loss to EBITDA & Adjusted EBITDA
(in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net loss | $ | (15,360 | ) | $ | (17,521 | ) | $ | (55,242 | ) | $ | (43,246 | ) | |||
| Adjustments: | |||||||||||||||
| Interest income | (1,067 | ) | (1,570 | ) | (3,978 | ) | (5,017 | ) | |||||||
| Interest expense | 1,313 | 1,296 | 3,942 | 3,863 | |||||||||||
| Taxes | — | — | — | — | |||||||||||
| Depreciation & Amortization | 2,157 | 1,564 | 6,182 | 3,583 | |||||||||||
| EBITDA | $ | (12,957 | ) | $ | (16,231 | ) | $ | (49,096 | ) | $ | (40,817 | ) | |||
| Share-based compensation expense | 7,900 | 5,192 | 22,048 | 11,480 | |||||||||||
| Acquisition-related costs | — | 1,802 | 1,873 | 2,322 | |||||||||||
| Restructuring costs1 | — | — | 964 | — | |||||||||||
| Customer credit loss2 | — | — | 2,147 | — | |||||||||||
| Adjusted EBITDA | $ | (5,057 | ) | $ | (9,237 | ) | $ | (22,064 | ) | $ | (27,015 | ) | |||
1 Restructuring charges primarily relate to severance payments and other post-employment benefits from a restructuring in June 2024.
2 Customer credit loss consists of the write-off of accounts receivable due from a customer that filed for bankruptcy during the second quarter of 2024.
FAQ
What was Treace Medical Concepts (TMCI) revenue in Q3 2024?
What is TMCI's revised revenue guidance for full-year 2024?
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What was TMCI's net loss in Q3 2024?
