Establishment Labs Holdings Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability. For the three months ended September 30, 2024, the company generated revenue of $40.2 million, a 4.4% increase from $38.5 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue decreased by 9.1% to $121.5 million from $133.6 million in the prior year. This decline was primarily attributed to a 33% drop in sales in Latin America, partially offset by a 17% increase in the Asia-Pacific region.

Total operating expenses for the third quarter decreased significantly to $38.9 million from $47.1 million year-over-year, driven by reductions in sales, general and administrative (SG&A) expenses and research and development (R&D) costs. SG&A expenses fell to $34.1 million from $40.0 million, while R&D expenses decreased to $4.8 million from $7.1 million. Consequently, the loss from operations narrowed to $13.1 million for the third quarter, compared to a loss of $21.0 million in the same quarter of 2023. For the nine-month period, the loss from operations was $31.3 million, down from $42.9 million in the previous year.

The net loss for the third quarter was $16.7 million, a significant improvement from a net loss of $29.3 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $50.1 million, compared to $58.0 million in the prior year. The basic and diluted net loss per share for the third quarter improved to $(0.59) from $(1.12) in 2023.

Establishment Labs also made strategic advancements, including receiving FDA approval for its Motiva Implants in September 2024, with sales commencing in October 2024. The company completed a new manufacturing facility in Costa Rica in June 2024, enhancing its production capacity. Additionally, the company announced the acquisition of Motiva Benelux BV and Motiva NL B.V. for approximately $4.4 million in October 2024.

As of September 30, 2024, Establishment Labs reported total assets of $282.7 million, up from $268.6 million at the end of 2023, and total shareholders' equity increased to $32.7 million from $18.4 million. The company’s cash balance stood at $39.7 million, slightly down from $40.0 million at the end of 2023. The company continues to navigate a complex global economic environment, with ongoing challenges in demand, particularly in Latin America, while anticipating improved performance in the U.S. market following recent product approvals.