Treace Medical Concepts, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, Treace generated revenue of $45.1 million, a 10.6% increase from $40.8 million in the same period of 2023. For the nine months, revenue rose 12.6% to $140.6 million from $124.9 million year-over-year. Gross profit for the third quarter was $36.1 million, up 10.3% from $32.8 million, while for the nine months, gross profit increased 11.5% to $112.8 million from $101.2 million. However, the gross profit margin slightly decreased from 81.0% to 80.2% for the nine-month period.
Despite the revenue growth, Treace reported a net loss of $15.4 million for the third quarter, an improvement from a loss of $17.5 million in the prior year. However, the net loss for the nine months increased to $55.2 million from $43.2 million, reflecting a 27.7% rise in losses. The company’s accumulated deficit grew to $189.5 million as of September 30, 2024.
Total current assets decreased to $157.6 million from $198.4 million at the end of 2023, primarily due to a significant drop in marketable securities, which fell from $110.2 million to $70.7 million. Cash and cash equivalents also declined from $12.98 million to $12.11 million. Conversely, inventories increased from $29.2 million to $43.6 million, indicating a strategic buildup of products.
In terms of strategic developments, Treace completed the acquisition of RedPoint Medical3D in June 2023 for $20 million, with potential milestone payments of up to $8.1 million. The acquisition included 22 patent applications, enhancing the company’s intellectual property portfolio. Additionally, Treace launched several new products in 2023 and plans to introduce more by the end of 2024, including the Nanoplasty system and IntelliGuide PSI Cut Guides.
The company is navigating a competitive landscape, facing challenges from new minimally invasive solutions and economic factors such as inflation and reduced consumer confidence. As of September 30, 2024, Treace had $54 million in principal outstanding under term and revolving loans, with a long-term debt structure that includes a $150 million loan facility.
Overall, Treace Medical Concepts is focused on expanding its product offerings and market presence while managing its financial performance amid ongoing operational challenges.
About TREACE MEDICAL CONCEPTS, INC.
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