PONTE VEDRA, Fla., May 08, 2025 (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 first quarter ended March 31, 2025. Recent Highlights Generated revenue of $52.6 million in first quarter 2025 representing growth of 3% over the same pe ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $68.7 million, representing a 10.4% growth over the fourth quarter of 2023, at the top-end of previously announced preliminary results [22][27] - Full-year 2024 revenue was $209.4 million, a 12% increase over 2023, also at the top-end of prior guidance [28] - Gross margin for the fourth quarter was 80.7%, down from 81.6% in the fourth quarter of 2023, while full-year gross margin was 80.4%, compared to 81.2% in 2023 [28][29] - Fourth quarter net loss was $0.5 million or $0.01 per share, compared to a net loss of $6.3 million or $0.10 per share in the fourth quarter of 2023 [30] - Adjusted EBITDA for the fourth quarter was $11.1 million, an improvement of 322% compared to the fourth quarter of 2023 [30] Business Line Data and Key Metrics Changes - The growth was driven by a product mix shift, increased adoption of newer technologies such as Adductoplasty and SpeedPlate, and an increase in active surgeon users [22][28] - The company aims to capture a larger share of the remaining 75% of bunion procedures performed by its surgeon customers [20] Market Data and Key Metrics Changes - The company has a growing base of over 3,100 surgeon customers, representing a ready audience for its expanding suite of technologies [10] - The company estimates that around 10% to 15% of all metatarsal osteotomies today are being performed with minimally invasive approaches, indicating a significant growth opportunity [14] Company Strategy and Development Direction - The company focuses on expanding its portfolio of innovative solutions to address all four classes of bunions, aiming to maximize market share [20][26] - The strategy includes making procedures less invasive, which is expected to appeal to a larger portion of the 4.4 million Americans seeking medical attention for bunions each year [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the setup for 2025, expecting revenue guidance of $224 million to $230 million, reflecting a 7% to 10% increase over 2024 [24][32] - The company anticipates break-even adjusted EBITDA for full-year 2025 and a 50% decrease in cash burn compared to 2024 [32] Other Important Information - The company has introduced new technologies such as Mini-Adductoplasty and SpeedMTP, which are expected to ramp availability and revenue impact in the back half of 2025 [21][19] - The company is monitoring reimbursement trends following significant increases in material reimbursement for CPT code 28297, associated with Lapiplasty procedures [23] Q&A Session Summary Question: Thoughts on revenue pacing through 2025 - Management acknowledged that Q1 will be a tougher comp but expects higher growth rates in Q2, Q3, and Q4 [38] Question: Impact of new products on ASPs and unit volumes - Management indicated that the focus will be on procedure volume rather than significant shifts in blended ASP [44] Question: Profitability and leverage components - Management highlighted natural leverage from a more experienced sales force and reduced aggressive hiring [52][54] Question: Early feedback on new products and competitive dynamics - Early feedback on new products has been positive, with some surgeons returning to Lapiplasty after trying competitors [58] Question: Thoughts on the Zimmer-Paragon deal - Management stated they are focused on growing their product line and will observe the market effects of the acquisition [66] Question: Clinical outcomes of new osteotomy solutions - Management emphasized the importance of three-plane correction in their osteotomy approach, which they believe will lead to better long-term outcomes [72] Question: Q1 revenue expectations - Management confirmed that Q1 is expected to show low-single digit growth rates year-over-year [76] Question: Targeting new surgeons with broader product offerings - Management aims to add approximately 200 new surgeons to their customer base in 2025 [84] Question: Future opportunities in foot and ankle market - Management indicated a robust pipeline of products and a focus on penetrating the bunion and midfoot markets [90][92] Question: Utilization of new osteotomy offerings - Initial adopters of the new osteotomy systems are high utilizers of minimally invasive techniques [98] Question: Update on SpeedPlate attach rates - SpeedPlate has grown to over 50% of the overall fixation mix, with expectations for continued growth [108]