Allurion Technologies(US:ALUR)2025-05-15 20:15Financial Performance - Revenue for the three months ended March 31, 2025, was $5.6 million, a decrease of 40% compared to $9.4 million for the same period in 2024[228]. - Losses from operations for the three months ended March 31, 2025, were $7.3 million, down from $11.4 million in the same period in 2024[228]. - Revenue decreased by $3.8 million, or 41%, to $5.6 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to not selling products in France[269]. - Gross profit decreased by $2.7 million, or 39%, to $4.2 million for the three months ended March 31, 2025, mainly due to lower revenue and sales volume[271]. - Total operating expenses decreased by $6.8 million, or 37%, to $11.4 million for the three months ended March 31, 2025, compared to the same period in 2024[268]. - Loss from operations improved by $4.1 million, or 36%, to $7.3 million for the three months ended March 31, 2025, compared to the same period in 2024[268]. - Net income increased by $1.8 million, or 32%, to $7.4 million for the three months ended March 31, 2025, compared to $5.6 million in the same period in 2024[268]. - The company incurred operating losses of $7.3 million for the three months ended March 31, 2025, compared to $11.4 million for the same period in 2024[283]. Operational Highlights - The AUDACITY trial showed that 58% of Allurion Balloon subjects lost more than 5% of their total body weight at 48 weeks, achieving the co-primary endpoint[237]. - The Allurion Balloon subjects exhibited a 3.77% mean difference in total body weight loss compared to control subjects at 48 weeks[237]. - The rate of serious adverse events in Allurion Balloon subjects was 3.1%, the lowest reported in a pivotal FDA trial for a liquid-filled intragastric balloon[238]. - The company plans to submit the fourth and final module of the premarket approval application to the FDA based on the AUDACITY trial results[238]. - The company resumed sales of the Allurion Balloon in France after receiving clearance from the French regulatory authority on February 13, 2025[244]. - The company is nearing completion of its AUDACITY clinical trial in the United States, with expected significant decreases in clinical trial expenses[307]. Cash and Financing - As of March 31, 2025, the company had $20.4 million in cash and cash equivalents and an accumulated deficit of $231.6 million[283]. - The company raised approximately $5.8 million from the January 2025 Offering and Private Placement, selling 1,240,000 shares at $6.00 per share[240]. - The company received net proceeds of $1.3 million from the issuance of 267,686 shares of Common Stock and 535,372 Leavitt Private Placement Warrants on February 20, 2025[287]. - The company received net proceeds of $3.9 million from the issuance of 900,000 shares of Common Stock and 1,800,000 February 2025 Warrants on February 20, 2025[288]. - The company received $40.0 million in proceeds from the Revenue Interest Financing Agreement with RTW on August 1, 2023[298]. - Cash provided by financing activities for the three months ended March 31, 2025, was $14.5 million, primarily from net proceeds of various private placements[319]. - The company expects to continue to generate operating losses for the foreseeable future and may need to raise additional capital[286]. Expenses and Cost Management - Cost of revenue decreased by $1.1 million, or 44%, to $1.5 million for the three months ended March 31, 2025, attributed to decreased gastric balloon units sold and operational efficiencies from restructuring[270]. - Sales and marketing expenses decreased by $2.5 million, or 41%, to $3.6 million for the three months ended March 31, 2025, driven by a reduction in salaries and marketing expenditures[272]. - Research and development expenses decreased by $3.1 million, or 54%, to $2.6 million for the three months ended March 31, 2025, primarily due to lower costs related to the AUDACITY clinical trial and reduced headcount[273]. - General and administrative expenses decreased by $1.2 million, or 19%, to $5.2 million for the three months ended March 31, 2025, compared to the same period in 2024[275]. - Interest expense was eliminated for the three months ended March 31, 2025, compared to $1.9 million in the same period in 2024[268]. - Interest expense decreased by $1.9 million, or 100%, to zero for the three months ended March 31, 2025, due to the termination of the Fortress Term Loan in April 2024[276]. Cash Flow and Liabilities - For the three months ended March 31, 2025, net cash used in operating activities was $9.5 million, compared to $8.6 million for the same period in 2024[310]. - The company experienced a $3.9 million decrease in accounts payable and other current liabilities due to restructuring and timing of payments[312]. - During the three months ended March 31, 2025, cash used in investing activities was zero, compared to $0.1 million in 2024[318]. - The company has not engaged in any foreign currency hedging activities to date, but is monitoring potential exposure as international operations grow[331]. - A hypothetical 10% change in interest rates would not have a material impact on the value of the company's cash or cash flows[327]. - An immediate 10% adverse change in foreign exchange rates could impact revenues by approximately 5% and expenses by 3% for the three months ended March 31, 2025[331]. - Non-cash income for the three months ended March 31, 2025, included $6.2 million related to the change in fair value of convertible debt[311].