Allurion Technologies Reports 40% Revenue Decline and $26.1 Million Net Loss for Fiscal Year 2024

Allurion Technologies, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues of $32.1 million, a decrease of 40% from $53.5 million in 2023. The company attributed this drop to lower reorder rates from distributors adjusting their inventory levels and macroeconomic challenges in certain markets. Additionally, a temporary suspension of sales in France by the Agence Nationale de Sécurité du Médicament (ANSM) contributed to a $1.2 million revenue reduction due to customer returns. The company incurred a net loss of $26.1 million for 2024, a notable improvement compared to the $80.6 million loss reported in the previous year.

In terms of operational changes, Allurion has been focusing on restructuring its workforce, reducing its headcount by approximately 50% to align with its business needs and improve efficiency. The company has also implemented cost reduction initiatives, which have led to decreased operating expenses across various departments, including sales and marketing, research and development, and general administrative costs. The total operating expenses for 2024 were $71.7 million, down from $120.6 million in 2023.

Strategically, Allurion has made significant advancements in its product offerings, including the recent completion of the AUDACITY pivotal trial for the Allurion Balloon, which demonstrated promising results in weight loss efficacy. The trial's outcomes are expected to support the company's submission for premarket approval (PMA) to the FDA. Furthermore, the company has resumed sales of the Allurion Balloon in France after addressing regulatory concerns, which is anticipated to positively impact future revenue.

As of December 31, 2024, Allurion had 137 employees and has been actively working to enhance its operational capabilities, including the implementation of a new enterprise resource planning system. The company is also exploring opportunities for geographic expansion and product adoption, particularly in the U.S. market, where it sees a total addressable market of approximately $10 billion for its weight loss solutions. However, the company continues to face challenges, including a significant accumulated deficit of $238.9 million and ongoing operational losses, leading to substantial doubt about its ability to continue as a going concern.

Looking ahead, Allurion's management has indicated that achieving profitability will depend on the successful commercialization of the Allurion Balloon and other products, as well as the ability to navigate regulatory landscapes and market acceptance. The company plans to continue focusing on cost management and operational efficiency while pursuing additional funding to support its growth initiatives.