Treace Medical Concepts, Inc. (TMCI), a leading innovator in the medical technology space focused on bunion treatment, announced its financial results for the third quarter of 2024.
The company is demonstrating continued growth, driven by strategic product innovations and the expansion of its technology pipeline.
Treace Medical Achieves 11% Revenue Growth in Q3 2024
Treace Medical reported a robust 11% year-over-year revenue increase for the third quarter of 2024, reaching $45.1 million, compared to $40.8 million during the same period in 2023.
This growth was largely fueled by higher adoption of advanced technologies, such as the Lapiplasty® and Adductoplasty® procedures, alongside increased sales of ancillary products used in bunion surgeries.
Furthermore, the Company saw significant growth in its active surgeon base, which contributed to the overall revenue increase.
John T. Treace, CEO and Founder of Treace, stated,
Our third-quarter results underscore our commitment to innovation and market expansion. The successful adoption of our existing technologies and the launch of the Nanoplasty™ 3D Minimally Invasive Bunion Correction™ Procedure into the high-volume osteotomy market signal continued momentum.”
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Profitability and Operational Efficiency: Gross Profit Margin Maintained at 80%
Gross profit for Q3 2024 increased to $36.1 million, up from $32.8 million in Q3 2023. Despite a slight decrease in gross margin from 80.4% to 80.1%, the company’s focus on product innovation and cost management allowed it to maintain a strong profit margin.
This was partly offset by increased inventory provisions and shifts in product mix, as well as lower royalty rates.
Adjusted EBITDA Loss Improves by 45% in Q3 2024
Treace Medical’s third-quarter net loss narrowed to $15.4 million, or $0.25 per share, compared to $17.5 million, or $0.28 per share, in Q3 2023.
The Company also improved its Adjusted EBITDA loss by 45%, reaching a loss of $5.1 million in the third quarter of 2024, compared to a loss of $9.2 million for the same period last year.
This improvement highlights Treace’s growing operational efficiency as it continues to invest in its technology pipeline.
Strong Cash Position for Future Growth Initiatives
As of September 30, 2024, Treace Medical held cash, cash equivalents, and marketable securities totaling $82.8 million.
This strong financial position gives the company the flexibility to continue executing on its growth strategy, including further investments in research and development and expanding its product offerings.
Updated 2024 Revenue Outlook: Strong Growth Forecasted
Treace Medical has updated its full-year 2024 revenue guidance, now projecting revenue between $204 million and $211 million, representing growth of 9% to 13% compared to 2023.
The company also expects a significant reduction in its Adjusted EBITDA loss for the full year, forecasting a decrease of approximately 50% compared to 2023.
Treace’s innovation-driven approach will continue to drive growth, with the company set to release new technologies later this year.
The company’s expanding patent portfolio and upcoming product launches reinforce its strong position in the bunion and midfoot deformity treatment market.
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