OrthoPediatrics Corp (KIDS) Q3 2024 Earnings Call Highlights: Record Revenue and Raised ...

In This Article:

  • Revenue: $54.6 million, a 37% increase from Q3 2023.

  • US Revenue: $42.7 million, a 46% increase from Q3 2023.

  • International Revenue: $11.9 million, a 12% increase from Q3 2023.

  • Trauma and Deformity Revenue: $37.6 million, a 31% increase from Q3 2023.

  • Scoliosis Revenue: $15.6 million, a 52% increase from Q3 2023.

  • Gross Profit Margin: 73%, down from 77% in Q3 2023.

  • Operating Expenses: $45.6 million, a 29% increase from Q3 2023.

  • Adjusted EBITDA: $4.0 million, compared to $3.6 million in Q3 2023.

  • Cash and Short-term Investments: $78.1 million.

  • Full Year 2024 Revenue Guidance: Raised to $202-$204 million, representing 36%-37% growth.

  • Full Year Gross Margin Guidance: Expected to be 74%-75%.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • OrthoPediatrics Corp (NASDAQ:KIDS) reported a record revenue of $54.6 million for Q3 2024, representing a 37% increase from the same period in 2023.

  • The company helped over 33,000 children in Q3 2024, marking a 50% increase year-over-year.

  • The Trauma and Deformity segment generated $37.6 million in revenue, showing a 31% growth compared to the prior year period.

  • Scoliosis revenue grew by 52% globally, driven by strong case scheduling and new user onboarding.

  • OrthoPediatrics Corp (NASDAQ:KIDS) raised its full-year 2024 revenue guidance to $202 to $204 million, reflecting a year-over-year growth of 36% to 37%.

Negative Points

  • Gross profit margin decreased to 73% in Q3 2024 from 77% in the same quarter of 2023, primarily due to product mix shift and increased set sales internationally.

  • Operating expenses increased by 29% to $45.6 million, driven by the addition of Boston O&P and increased spending related to EU-MDR certification.

  • The company experienced marginal impacts from hurricanes in September and October, resulting in case cancellations.

  • There was a slight delay anticipated in the US launch of the EOS product due to FDA approval pathway discussions.

  • International Trauma and Deformity growth was muted by a difficult prior year comparison due to large distributor orders in the previous year.

Q & A Highlights

Q: How did Boston O&P perform in the quarter, and was there any shift in revenue generation between Trauma & Deformity (T&D) and Scoliosis? A: David Bailey, CEO: Boston O&P performed as expected, with early positive returns from patient flow into clinics. The mix between T&D and Scoliosis remained consistent, and the 52% growth in Scoliosis was not driven by Boston O&P overperformance.

Waiting for permission
Allow microphone access to enable voice search

Try again.