TransMedics Group, Inc. reported significant financial growth in its third quarter and the first nine months of 2024, driven primarily by increased revenue from its Organ Care System (OCS) product line. For the three months ended September 30, 2024, total revenue reached $108.8 million, a substantial increase from $66.4 million in the same period of 2023. This growth was fueled by net product revenue of $65.9 million, up from $47.7 million, and service revenue of $42.9 million, compared to $18.7 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $319.9 million, nearly doubling from $160.4 million in the prior year.
The company achieved a gross profit of $60.8 million in Q3 2024, up from $40.7 million, and for the nine-month period, gross profit increased to $190.1 million from $106.2 million. Notably, TransMedics reported net income of $4.2 million for Q3 2024, a significant turnaround from a net loss of $25.4 million in Q3 2023. For the nine months, net income was $28.6 million, compared to a net loss of $29.1 million in the same period last year.
The increase in revenue was attributed to higher sales volumes of OCS disposable sets and enhanced usage of the National Organ Procurement (NOP) network. OCS transplant revenue in the U.S. alone rose to $104.9 million in Q3 2024, up from $59.7 million in Q3 2023. However, revenue from international customers decreased slightly during the same period.
TransMedics' total assets increased to $785.6 million as of September 30, 2024, from $706.0 million at the end of 2023, while total current assets decreased to $492.5 million from $510.7 million. The company’s cash position also declined to $330.1 million from $394.8 million, reflecting ongoing investments in operations and capital expenditures, including $96.2 million for transplant aircraft.
In terms of operational expenses, total operating expenses for Q3 2024 decreased to $56.9 million from $69.0 million in Q3 2023. Research, development, and clinical trials expenses rose to $14.3 million, reflecting ongoing product development efforts. Selling, general, and administrative expenses also increased significantly, driven by higher personnel costs and stock-based compensation.
TransMedics completed the acquisition of Summit Aviation, Inc. in August 2023 to enhance its aviation transportation services for organ retrieval, which is expected to support its growth strategy. The company anticipates the need for additional funding in the future, which may be pursued through equity or debt financing.
About TransMedics Group, Inc.
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