Inari Medical(US:NARI)2024-05-01 07:32Financial Data and Key Metrics Changes - Inari Medical achieved record revenue of over $143 million in Q1 2024, reflecting over 23% growth compared to the same period last year [10][35] - The gross margin for Q1 2024 was 86.8%, down from 88.2% in the prior year, attributed to increasing internationalization and ramp-up costs associated with new products [36] - The GAAP operating loss was $17.2 million for Q1 2024, compared to a loss of $5.3 million in the same period of the prior year [47] - The net loss for Q1 2024 was $24.2 million, compared to a net loss of $2.2 million in the prior year [49] - Cash flows used in operating activities were $12.3 million in Q1 2024, up from approximately $2 million in the same period of 2023 [50] - The company raised its full-year 2024 revenue guidance to between $592.5 million and $602.5 million, reflecting growth of approximately 20% to 22% over 2023 [52] Business Line Data and Key Metrics Changes - Global VTE revenue was $137 million in Q1 2024, up 20% year-over-year, driven by ongoing commercial expansion and market development [25][43] - Emerging therapies revenue reached $6 million in Q1 2024, up 185% compared to the prior year [27][43] - International revenue was $9.5 million, representing a 120% increase year-over-year [31][43] Market Data and Key Metrics Changes - The U.S. market for venous thromboembolism (VTE) technologies is valued at $6 billion, with expectations for continued growth around 20% [25] - The addressable market for chronic venous disease (CBD) is estimated at $1 billion in the U.S., with an annual incidence of approximately 100,000 patients [28] - The acute limb ischemia market is valued at $600 million in the U.S., with significant unmet needs [30] Company Strategy and Development Direction - The company aims to scale adoption of its differentiated toolkits across large markets, focusing on deeper adoption within existing U.S. accounts and expanding internationally, particularly in Japan and China [13][32] - Inari is committed to ongoing portfolio expansion to address unmet patient needs in venous and other diseases, with a focus on innovation and protecting its leadership through a strong IP portfolio [15][24] - The company plans to showcase its PEERLESS data in the second half of the year, which will evaluate patient outcomes using its FlowTriever device [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained operating profitability in the first half of 2025, despite expected greater operating losses in the first half of 2024 [54] - The company remains optimistic about maintaining its leadership position in the VTE market, despite competitive dynamics [26][74] - Management highlighted the importance of high-quality clinical data in driving market growth and maintaining leadership [19] Other Important Information - The company is integrating the LimFlow business and focusing on building a foundation for commercialization, with expectations for significant contributions in 2025 [37][97] - The proposed NTAP from CMS for LimFlow could add up to $16,000 to hospital reimbursements, enhancing the economic value proposition [38][97] Q&A Session Summary Question: Confirmation of U.S. core VTE sales growth - Management confirmed that U.S. core VTE sales were approximately $128 million, up about 16% year-over-year, and reiterated confidence in robust underlying market growth [57][60] Question: Subsegments within VTE market share - Management reported balanced growth in both PE and DVT segments, maintaining a strong market position in PE and a competitive position in DVT [65][66] Question: Guidance raise details - The guidance raise reflects strength across all business segments, with robust growth in VTE, emerging therapies, and international sales contributing to the increase [70] Question: Impact of new competitors - Management noted continued competitive dynamics but emphasized confidence in maintaining market leadership due to superior technology and data [74] Question: International expansion status - Management confirmed strong growth in international markets, particularly in Western Europe, and plans to enter China and Japan later in the year [82] Question: LimFlow commercialization strategy - Management indicated that 2024 is focused on foundation building for LimFlow, with expectations for significant commercial efforts to ramp up in 2025 [97] Question: Concerns about Q2 performance - Management acknowledged historical seasonality in Q2 but expressed confidence in strong catalysts for growth in the second half of the year [101][102]