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TransMedics Reports Third Quarter 2024 Financial Results

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TransMedics (TMDX) reported strong Q3 2024 financial results with total revenue of $108.8 million, representing a 64% increase from Q3 2023. The company achieved a net income of $4.2 million ($0.12 per diluted share), compared to a net loss in the previous year. Gross margin was 56%, down from 61% in Q3 2023. The company maintained its full-year 2024 revenue guidance of $425-445 million, projecting 76-84% growth. TransMedics owned 18 aircraft and held $330.1 million in cash as of September 30, 2024, continuing its progress toward the goal of 10,000 OCS transplant cases annually by 2028.

TransMedics (TMDX) ha riportato risultati finanziari forti per il terzo trimestre del 2024, con un fatturato totale di 108,8 milioni di dollari, che rappresenta un aumento del 64% rispetto al terzo trimestre del 2023. L'azienda ha registrato un utile netto di 4,2 milioni di dollari (0,12 dollari per azione diluita), rispetto a una perdita netta nell'anno precedente. Il margine lordo si è attestato al 56%, in calo rispetto al 61% nel terzo trimestre del 2023. L'azienda ha mantenuto la previsione di fatturato per l'intero anno 2024 tra 425 e 445 milioni di dollari, prevedendo una crescita del 76-84%. TransMedics possedeva 18 aerei e deteneva 330,1 milioni di dollari in contante al 30 settembre 2024, continuando il suo progresso verso l'obiettivo di 10.000 casi di trapianto OCS annuali entro il 2028.

TransMedics (TMDX) informó resultados financieros sólidos para el tercer trimestre de 2024, con ingresos totales de 108.8 millones de dólares, lo que representa un aumento del 64% en comparación con el tercer trimestre de 2023. La compañía alcanzó un ingreso neto de 4.2 millones de dólares (0.12 dólares por acción diluida), en comparación con una pérdida neta en el año anterior. El margen bruto fue del 56%, por debajo del 61% en el tercer trimestre de 2023. La compañía mantuvo su guía de ingresos para todo el año 2024 entre 425 y 445 millones de dólares, proyectando un crecimiento del 76-84%. TransMedics poseía 18 aeronaves y tenía 330.1 millones de dólares en efectivo al 30 de septiembre de 2024, continuando su progreso hacia el objetivo de 10,000 casos de trasplante OCS anuales para 2028.

트랜스메딕스(TMDX)는 2024년 3분기 재무 결과가 강하다고 보고하며, 총 수익이 1억 8백만 달러에 달해 2023년 3분기 대비 64% 증가했다고 발표했습니다. 회사는 420만 달러(희석주당 0.12달러)의 순이익을 기록했으며, 작년에는 순손실을 기록했습니다. 총 마진은 56%로, 2023년 3분기의 61%에서 감소했습니다. 회사는 2024년 전체 연간 수익 목표를 4억 2500만 ~ 4억 4500만 달러로 유지하며, 76~84%의 성장을 예상하고 있습니다. 트랜스메딕스는 2024년 9월 30일 현재 18대의 항공기를 보유하고 있으며, 3억 3천만 달러의 현금을 보유하고 있어 2028년까지 매년 1만 건의 OCS 이식 사례를 목표로 하는 진전을 계속하고 있습니다.

TransMedics (TMDX) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus totaux de 108,8 millions de dollars, représentant une augmentation de 64 % par rapport au troisième trimestre 2023. L'entreprise a réalisé un bénéfice net de 4,2 millions de dollars (0,12 dollar par action diluée), comparé à une perte nette l'année précédente. La marge brute était de 56 %, en baisse par rapport à 61 % au troisième trimestre 2023. L'entreprise a maintenu son objectif de revenus pour l'année 2024 entre 425 et 445 millions de dollars, projetant une croissance de 76 à 84 %. TransMedics possédait 18 avions et détenait 330,1 millions de dollars en liquidités au 30 septembre 2024, poursuivant ainsi ses progrès vers l'objectif de 10 000 cas de greffe OCS par an d'ici 2028.

TransMedics (TMDX) hat starke Finanzzahlen für das dritte Quartal 2024 reported, mit einem Gesamtumsatz von 108,8 Millionen Dollar, was einem Anstieg von 64 % im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen erzielte einen Nettogewinn von 4,2 Millionen Dollar (0,12 Dollar pro verwässerter Aktie), verglichen mit einem Nettoverlust im Vorjahr. Die Bruttomarge betrug 56 %, ein Rückgang von 61 % im dritten Quartal 2023. Das Unternehmen hielt an seiner Umsatzprognose für das Gesamtjahr 2024 von 425 bis 445 Millionen Dollar fest und rechnet mit einem Wachstum von 76-84 %. TransMedics besaß 18 Flugzeuge und hatte zum 30. September 2024 330,1 Millionen Dollar in bar, was den Fortschritt in Richtung des Ziels von 10.000 OCS-Transplantationsfällen pro Jahr bis 2028 fortsetzt.

Positive
  • Revenue grew 64% YoY to $108.8 million in Q3 2024
  • Achieved net income of $4.2 million vs previous year's loss
  • Strong cash position of $330.1 million
  • Maintained robust full-year guidance of $425-445 million
Negative
  • Gross margin declined to 56% from 61% YoY
  • Cash decreased from $362.8M to $330.1M quarter-over-quarter

Insights

TransMedics delivered exceptional Q3 2024 results with revenue surging 64% year-over-year to $108.8 million. The company achieved profitability with net income of $4.2 million, a significant improvement from last year's loss of $25.4 million. While gross margin contracted to 56% from 61%, this reflects strategic investments in infrastructure to support future growth.

The company maintains its ambitious full-year revenue guidance of $425-445 million, projecting 76-84% growth. With $330.1 million in cash, TransMedics is well-positioned to fund its expansion plans. The target of 10,000 annual OCS transplant cases by 2028 appears achievable given the current growth trajectory and infrastructure investments.

The expanding National OCS Program (NOP) demonstrates strong market adoption across all three organ platforms - heart, lung and liver. The company's vertical integration strategy of owning 18 aircraft for logistics services is proving successful, enabling better control over the organ transport process and creating additional revenue streams. The sustained growth in transplant volumes indicates increasing acceptance of the OCS technology among transplant centers and validates its clinical utility in expanding the donor organ pool.

ANDOVER, Mass., Oct. 28, 2024 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter ended September 30, 2024.

Recent Highlights

  • Total revenue of $108.8 million in the third quarter of 2024, a 64% increase compared to the third quarter of 2023
  • Generated net income of $4.2 million or $0.12 per diluted share in the third quarter of 2024
  • Owned 18 total aircraft as of September 30, 2024

"We are proud of our performance year to date and look forward to ending 2024 on a strong note," said Waleed Hassanein, MD, President and Chief Executive Officer. "We continued to make meaningful progress across each of our growth initiatives through the third quarter and maintain our conviction in our growth runway for 2025 and beyond. Overall, we remain well on track to reach our stated target of achieving 10,000 OCS transplant cases per year in the U.S. by 2028."

Third Quarter 2024 Financial Results
Total revenue for the third quarter of 2024 was $108.8 million, a 64% increase compared to $66.4 million in the third quarter of 2023. The increase was driven primarily by the increase in utilization of the Organ Care System ("OCS™") across all three organs through the National OCS Program ("NOP™") as well as additional revenue generated by TransMedics logistics services.

Gross margin for the third quarter of 2024 was 56%, compared to 61% in the third quarter of 2023. The change from prior year is a result of a higher proportion of service revenue compared to product revenue, which carries a higher margin, in 2024.  In addition, we made investments in our NOP network to prepare for future growth.

Operating expenses for the third quarter of 2024 were $56.9 million, compared to $69.0 million in the third quarter of 2023. The third quarter of 2023 included $27.2 million of non-recurring in-process research and development.  Increases in operating expense were driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. Third quarter operating expenses in 2024 included $7.6 million of stock compensation expense compared to $5.1 million of stock compensation expense in the third quarter of 2023.

Net income for the third quarter of 2024 was $4.2 million, or 3.9% of revenue, compared to a net loss of $25.4 million in the third quarter of 2023.

Cash was $330.1 million as of September 30, 2024 compared to $362.8 million as of June 30, 2024.

2024 Financial Outlook
TransMedics continues to expect revenue for the full year 2024 to be in the range of $425 million to $445 million, which represents 76% to 84% growth compared to the company's prior year revenue. 

Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on October 28, 2024. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at www.transmedics.com.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, our full-year guidance, our growth initiatives and runway, and statements about our operations, financial position, and business plans and our target of achieving 10,000 OCS transplant cases per year in the U.S. by 2028. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Our management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: our ability to maintain profitability on a sustained basis; our ability to attract, train and retain key personnel; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement to which we will remain subject until maturity; the fluctuation of our financial results from quarter to quarter; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; our dependence on the success of the Organ Care System or OCS; our ability to expand access to the OCS through our National OCS Program or NOP; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private and public payors on the benefits offered by the OCS; our ability to improve the OCS platform and develop the next generation of the OCS products; our dependence on a limited number of customers for a significant portion of our revenue; our ability to maintain regulatory approvals or clearances for our OCS products in the United States, the European Union, and other select jurisdictions worldwide; our ability to adequately respond to the Food and Drug Administration or FDA, or other competent authorities, follow-up inquiries in a timely manner; the performance of our third-party suppliers and manufacturers; our use of third parties to transport donor organs and medical personnel for our NOP and our ability to maintain and grow our logistics capabilities to support our NOP and reduce dependence on third party transportation, including by means of attracting, training and retaining pilots, and the acquisition, maintenance or replacement of fixed-wing aircraft for our aviation transportation services or other acquisitions, joint ventures or strategic investments; our ability to maintain Federal Aviation Administration or FAA or other regulatory licenses or approvals for our aircraft transportation services; price increases of the components of our products and maintenance, parts and fuel for our aircraft; the timing or results of post-approval studies and any clinical trials for the OCS; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology infrastructure; the economic, political and other risks associated with our foreign operations; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the extent and success of competing products or procedures that are or may become available; our ability to service our 1.50% convertible senior notes, due 2028; the impact of any product recalls or improper use of our products; our estimates regarding revenues, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available in our annual and quarterly reports and other filings that we make with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Investor Contact:
Brian Johnston
Laine Morgan
Gilmartin Group
332-895-3222
Investors@transmedics.com

TransMedics Group, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)




Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


2024


2023

Revenue:









Net product revenue


$65,861


$47,740


$198,918


$124,195

Service revenue


42,900


18,690


120,998


36,254

Total revenue


108,761


66,430


319,916


160,449

Cost of revenue:









Cost of net product revenue


13,246


11,086


41,800


26,950

Cost of service revenue


34,670


14,682


88,048


27,330

Total cost of revenue


47,916


25,768


129,848


54,280

Gross profit


60,845


40,662


190,068


106,169










Gross margin


56 %


61 %


59 %


66 %










Operating expenses:









Research, development and clinical trials


14,266


11,132


39,504


25,294

Acquired in-process research and development expenses



27,212



27,212

Selling, general and administrative


42,656


30,653


121,712


84,993

Total operating expenses


56,922


68,997


161,216


137,499

Income (loss) from operations


3,923


(28,335)


28,852


(31,330)

Other income (expense):









Interest expense


(3,617)


(3,590)


(10,838)


(7,186)

Interest income and other income (expense)


3,939


4,996


10,777


7,982

          Total other income (expense), net


322


1,406


(61)


796

Income (loss) before income taxes


4,245


(26,929)


28,791


(30,534)

(Provision) benefit for income taxes


(29)


1,507


(184)


1,475

Net income (loss)


$4,216


$(25,422)


$28,607


$(29,059)

Net income (loss) per share:









Basic


$0.13


$(0.78)


$0.86


$(0.89)

Diluted


$0.12


$(0.78)


$0.81


$(0.89)

Weighted average common shares outstanding:









Basic


33,441,394


32,614,059


33,108,253


32,474,522

Diluted


35,683,952


32,614,059


35,218,756


32,474,522

 

TransMedics Group, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)




September 30, 2024


December 31, 2023

Assets




Current assets:




Cash


$330,094


$394,812

Accounts receivable


90,128


63,576

Inventory


52,152


44,235

Prepaid expenses and other current assets


20,101


8,031

           Total current assets


492,475


510,654

Property, plant and equipment, net


271,739


173,941

Operating lease right-of-use assets


6,943


6,546

Restricted cash


500


500

Goodwill


11,549


11,990

Acquired intangible assets, net


2,202


2,354

Other non-current assets


163


62

           Total assets


$785,571


$706,047

Liabilities and Stockholders' Equity




Current liabilities:




Accounts payable


$13,134


$12,717

Accrued expenses and other current liabilities


42,187


38,221

Deferred revenue


2,184


1,961

Operating lease liabilities


2,543


2,035

Total current liabilities


60,048


54,934

Convertible senior notes, net


449,237


447,140

Long-term debt, net


59,294


59,064

Operating lease liabilities, net of current portion


7,072


7,707

Total liabilities


575,651


568,845

    Total stockholders' equity


209,920


137,202

    Total liabilities and stockholders' equity


$785,571


$706,047

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/transmedics-reports-third-quarter-2024-financial-results-302288940.html

SOURCE TransMedics Group, Inc.

FAQ

What was TransMedics (TMDX) revenue in Q3 2024?

TransMedics reported revenue of $108.8 million in Q3 2024, representing a 64% increase compared to Q3 2023.

What is TransMedics (TMDX) full-year 2024 revenue guidance?

TransMedics maintains its full-year 2024 revenue guidance of $425-445 million, representing 76-84% growth compared to the previous year.

What was TransMedics (TMDX) Q3 2024 net income?

TransMedics reported a net income of $4.2 million, or $0.12 per diluted share, in Q3 2024.

How many aircraft did TransMedics (TMDX) own as of Q3 2024?

TransMedics owned 18 total aircraft as of September 30, 2024.

TransMedics Group, Inc.

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