Paragon 28, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing significant revenue growth but continued net losses. The company achieved net revenue of $62.3 million for Q3 2024, an 18% increase from $52.8 million in Q3 2023. For the nine months, revenue rose to $184.4 million, up from $155.8 million in the prior year. This growth was attributed to increased surgical volume driven by an expanded U.S. sales force and successful product launches, with U.S. revenue growing 15% and international revenue increasing 36%.
Despite the revenue growth, Paragon 28 reported a net loss of $12.3 million for Q3 2024, compared to a loss of $11.2 million in Q3 2023. For the nine months, the net loss widened to $43.5 million from $35.2 million in the previous year. The gross profit margin decreased to 74.1% for Q3 2024, down from 77.4% in Q3 2023, primarily due to higher non-cash charges for excess and obsolete inventory.
Total operating expenses for the nine months ended September 30, 2024, were $173.5 million, an increase of 13% from $153.7 million in the same period of 2023. Research and development expenses decreased by 22% to $5.7 million in Q3 2024, while selling, general, and administrative expenses rose by 11% to $49.0 million.
The company’s cash and cash equivalents decreased to $39.1 million as of September 30, 2024, down from $75.6 million at the end of 2023. Total current assets also fell to $177.6 million from $207.8 million. The accumulated deficit increased to $(167.2) million, and total stockholders' equity decreased to $139.4 million.
In terms of strategic developments, Paragon 28 has been actively managing its debt, with total long-term debt reported at $150 million, including a revolving credit facility and a term loan facility. The company drew down $100 million from these facilities in late 2023. Additionally, Paragon 28 is addressing identified material weaknesses in its internal controls over financial reporting, with plans to enhance its organizational structure and accounting resources.
Overall, while Paragon 28 has demonstrated strong revenue growth, it continues to face challenges in profitability and cash management, alongside ongoing efforts to strengthen its operational controls.
About Paragon 28, Inc.
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