Inari Medical(NARI) - 2024 Q1 - Quarterly Results

First Quarter 2024 Financial Results Financial and Business Highlights Inari Medical reported strong Q1 2024 performance, driven by execution across its three growth pillars and a premium financial profile with strong gross margins and operating expense leverage - The company's strong Q1 performance is attributed to crisp execution across its three growth pillars: driving adoption of its toolkits, growing its commercial engine, and investing in clinical data[4] - The PEERLESS clinical study remains on track for presentation in the second half of 2024, representing a key investment in market-impacting data[4] - The company emphasizes a premium financial profile characterized by best-in-class gross margin and operating expense leverage, excluding deal-related costs[4] Detailed Financial Performance Q1 2024 revenue grew 23.3% to $143.2 million, but GAAP operating loss widened to $17.2 million and net loss increased to $24.2 million due to higher operating expenses Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $143.2M | $116.2M | +23.3% | | Gross Margin | 86.8% | 88.2% | -1.4 p.p. | | GAAP Operating Loss | ($17.2M) | ($5.3M) | Increased Loss | | Net Loss | ($24.2M) | ($2.2M) | Increased Loss | | Net Loss per Share | ($0.42) | ($0.04) | Increased Loss | - Revenue growth was primarily driven by increased adoption of the company's procedures, new products, and global commercial expansion[5] - Operating expenses increased to $141.5 million from $107.8 million year-over-year, mainly due to higher personnel-related expenses, costs from the LimFlow acquisition, and changes in the fair value of contingent consideration[8] Full Year 2024 Guidance Revenue Guidance and Profitability Outlook Inari raised full-year 2024 revenue guidance to $592.5-$602.5 million, projecting 20-22% growth and sustained operating profitability by H1 2025 - The company raised its full-year 2024 revenue guidance to $592.5 million to $602.5 million[13] - This new guidance reflects an expected annual growth of approximately 20% to 22% over 2023[13] - Inari expects to reach sustained operating profitability in the first half of 2025[13] Financial Statements Condensed Consolidated Statements of Operations Q1 2024 statement of operations reports $143.2 million revenue, $124.3 million gross profit, $141.5 million operating expenses, leading to a $17.2 million operating loss and $24.2 million net loss Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Line Item | Q1 2024 (in thousands) | Q1 2023 (in thousands) | | :--- | :--- | :--- | | Revenue | $143,194 | $116,167 | | Gross Profit | $124,301 | $102,426 | | Total Operating Expenses | $141,478 | $107,764 | | Loss from Operations | $(17,177) | $(5,338) | | Net Loss | $(24,202) | $(2,218) | | Net Loss per Share (Diluted) | $(0.42) | $(0.04) | Condensed Consolidated Balance Sheets As of March 31, 2024, Inari's balance sheet shows total assets of $661.8 million, total liabilities of $214.5 million, increased cash to $66.7 million, and decreased stockholders' equity to $447.2 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $66,707 | $38,597 | | Total Assets | $661,776 | $674,235 | | Total Liabilities | $214,546 | $209,325 | | Total Stockholders' Equity | $447,230 | $464,910 | Reconciliation of GAAP to Non-GAAP Operating Loss The company reconciled its Q1 2024 GAAP operating loss of $17.2 million to a non-GAAP operating loss of $5.6 million, with $11.5 million in adjustments primarily from the LimFlow acquisition Q1 2024 GAAP to Non-GAAP Reconciliation (in thousands) | Item | Amount (in thousands) | | :--- | :--- | | GAAP Operating loss | $(17,177) | | Change in fair value of contingent consideration | $6,303 | | Amortization of acquired intangible asset | $2,461 | | Acquisition-related expenses | $2,779 | | Non-GAAP Operating loss | $(5,634) | - The company presents non-GAAP figures to provide meaningful comparisons by excluding charges related to the timing and valuation of acquisitions, which are not part of core business operations[14] Revenue Disaggregation Q1 2024 revenue saw core VTE business grow 20.3% to $137.2 million, while Emerging Therapies segment surged 184.5% to $6.0 million Revenue by Segment (Q1 2024 vs Q1 2023, in thousands) | Segment | Q1 2024 (in thousands) | Q1 2023 (in thousands) | % Growth | | :--- | :--- | :--- | :--- | | VTE | $137,193 | $114,058 | 20.3% | | Emerging Therapies | $6,001 | $2,109 | 184.5% | | Total Revenue | $143,194 | $116,167 | 23.3% |