Allurion Technologies(ALUR) - 2025 Q1 - Quarterly Results

Allurion Q1 2025 Financial Results and Business Update Recent Company Highlights and Outlook The company highlights improved operational efficiency, progress on its FDA submission, and a strategic focus on combining its program with GLP-1 medications - The company is focusing on improving efficiency to achieve profitability, highlighted by reduced expenses, expanded gross margins, and a smaller operating loss[3] - Allurion is on track to complete its PMA submission to the FDA by the end of June after a successful pre-PMA meeting discussing the AUDACITY trial's topline results[3][7] - A key strategy is positioning the Allurion Program as complementary to GLP-1 medications, aiming to address their shortcomings by maintaining muscle mass and increasing adherence[4][7] - The company maintains its 2025 revenue guidance of approximately $30 million, with a projected 50% reduction in operating expenses compared to 2024[7] First Quarter Financial Results The company reports lower Q1 revenue but improved operational efficiency with higher gross margins, reduced expenses, and a smaller net operating loss Q1 2025 Key Financial Metrics (vs. Q1 2024) | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $5.6 million | $9.4 million | -40.5% | | Gross Profit | $4.2 million | $6.9 million | -39.1% | | Gross Margin | 75% | 73% | +2 p.p. | | Total Operating Expenses | $11.4 million | $18.3 million | -37.7% | | Net Operating Loss | $7.3 million | $11.4 million | -36.0% | - Operating expenses saw significant year-over-year reductions across all categories due to restructuring initiatives: Sales and Marketing decreased to $3.6M from $6.1M, R&D to $2.6M from $5.7M, and G&A to $5.2M from $6.4M[8][9][10] - Adjusted operating expenses for Q1 2025 were $10.1 million, a 45% decrease from the prior year, and the adjusted net operating loss was $5.9 million, a 48% reduction[7][11] - The company's cash balance was $20.4 million as of March 31, 2025[12] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Operations The company reported a Q1 operating loss of $7.3 million but achieved a net income of $7.4 million due to significant non-operating income Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Revenue | $5,580 | $9,386 | | Cost of revenue | 1,419 | 2,520 | | Gross profit | 4,161 | 6,866 | | Total operating expenses | 11,443 | 18,256 | | Loss from operations | (7,282) | (11,390) | | Total other income (expense) | 14,756 | 17,052 | | Income before income taxes | 7,474 | 5,662 | | Net income | $7,379 | $5,586 | | Net income per share (Basic) | $1.54 | $2.92 | | Net income per share (Diluted) | $0.20 | $2.78 | Condensed Consolidated Balance Sheets The balance sheet shows total assets of $38.4 million, total liabilities of $108.2 million, and an increased cash position of $20.4 million Condensed Consolidated Balance Sheets (unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $20,408 | $15,379 | | Total current assets | $33,166 | $27,156 | | Total assets | $38,414 | $32,813 | | Liabilities and Stockholders' Deficit | | | | Total current liabilities | $15,897 | $18,863 | | Total liabilities | $108,204 | $110,791 | | Total stockholders' deficit | ($69,790) | ($77,978) | | Total liabilities and stockholders' deficit | $38,414 | $32,813 | Non-GAAP Financial Measures and Reconciliations Non-GAAP measures show an adjusted operating loss of $5.9 million and a 45% decrease in adjusted operating expenses year-over-year - Non-GAAP measures are used to exclude one-time items, allowing management and investors to better compare the underlying financial performance of the business period-over-period[17] Non-GAAP Net Operating Loss Reconciliation (Q1 2025, in thousands) | | GAAP Results | Adjustments | Adjusted Results | | :--- | :--- | :--- | :--- | | Loss from operations | $(7,282) | $(1,390) | $(5,892) | Change in Operating Expenses and Net Operating Loss (Adjusted, Q1 2025 vs Q1 2024) | Metric | As Reported Change | Adjusted Change | | :--- | :--- | :--- | | Change in Operating Expenses | (37)% | (45)% | | Change in Net Operating Loss | (36)% | (48)% | Company and Investor Information About Allurion The company provides a weight loss platform centered on the first swallowable, procedure-less gastric balloon and a supporting Virtual Care Suite - Allurion's core product is a weight loss platform featuring the Allurion Gastric Balloon, the first and only swallowable, procedure-less intragastric balloon for weight loss[14] - The platform includes the Allurion Virtual Care Suite with a mobile app for consumers and the Allurion Insights with Coach Iris AI for healthcare providers, which can be used with or without the balloon[14] Conference Call and Webcast Details Management will host a conference call and webcast on May 14, 2025, to discuss the financial results and provide a business update - A conference call is scheduled for May 14, 2025, at 8:30 AM ET to discuss financial results[13]