Allurion Technologies, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated revenue of $5.4 million for the third quarter, a substantial decrease of 71% compared to $18.2 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $26.5 million, down 41% from $45.2 million in the prior year. This decline was attributed to lower reorder rates from distributors, reduced sales to manage credit risk, and the suspension of Allurion Balloon sales in France due to regulatory issues.

Despite the revenue drop, Allurion reported a net loss of $9.0 million for the third quarter, an improvement from a net loss of $21.6 million in the same quarter of 2023. For the nine-month period, the net loss was $5.6 million, significantly reduced from $61.4 million in the previous year. The company’s loss from operations also improved, with a loss of $12.3 million for the third quarter compared to $26.2 million in 2023.

Total operating expenses for the third quarter decreased to $15.5 million, down from $40.1 million in the same period last year. This reduction was driven by lower sales and marketing expenses, which fell by 63% to $5.2 million, and a 55% decrease in research and development expenses to $3.2 million. General and administrative expenses also saw a significant decline, dropping 63% to $7.0 million.

As of September 30, 2024, Allurion had cash and cash equivalents of $28.7 million, down from $38.0 million at the end of 2023. The company’s total assets decreased to $50.7 million, while total liabilities were reported at $114.5 million, down from $142.2 million at the end of the previous fiscal year. The accumulated deficit stood at $218.4 million.

Strategically, Allurion completed a business combination with Compute Health Acquisition Corp. on August 1, 2023, which allowed it to become publicly listed on the NYSE. The company has also engaged in various financing activities, including issuing convertible notes and entering into a Revenue Interest Financing Agreement with RTW, which provided $40 million in funding.

On November 6, 2024, Allurion announced a restructuring plan aimed at reducing operating costs, which will involve a workforce reduction of approximately 113 roles, or about 50% of its staff, with estimated one-time restructuring charges of $3.5 million. The company is also facing compliance issues with the NYSE regarding its stock price and market capitalization, having received notifications of non-compliance in August 2024.