In This Article:
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Revenue: $54.6 million, a 37% increase from Q3 2023.
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US Revenue: $42.7 million, a 46% increase from Q3 2023.
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International Revenue: $11.9 million, a 12% increase from Q3 2023.
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Trauma and Deformity Revenue: $37.6 million, a 31% increase from Q3 2023.
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Scoliosis Revenue: $15.6 million, a 52% increase from Q3 2023.
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Gross Profit Margin: 73%, down from 77% in Q3 2023.
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Operating Expenses: $45.6 million, a 29% increase from Q3 2023.
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Adjusted EBITDA: $4.0 million, compared to $3.6 million in Q3 2023.
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Cash and Short-term Investments: $78.1 million.
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Full Year 2024 Revenue Guidance: Raised to $202-$204 million, representing 36%-37% growth.
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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
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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.
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The company helped over 33,000 children in Q3 2024, marking a 50% increase year-over-year.
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The Trauma and Deformity segment generated $37.6 million in revenue, showing a 31% growth compared to the prior year period.
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Scoliosis revenue grew by 52% globally, driven by strong case scheduling and new user onboarding.
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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
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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.
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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.
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The company experienced marginal impacts from hurricanes in September and October, resulting in case cancellations.
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There was a slight delay anticipated in the US launch of the EOS product due to FDA approval pathway discussions.
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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.