The following is a summary of the Merit Medical Systems, Inc. (MMSI) Q1 2024 Earnings Call Transcript:
Financial Performance:
Merit Medical Systems reported Q1 revenue of $323.5 million, an 8.7% increase YoY.
Non-GAAP gross profit and operating profit increased by 10% and 16% respectively, leading to YoY margin expansion of about 80 and 115 basis points respectively.
Non-GAAP EPS growth was 19%, exceeding expectations.
There was almost a 9% growth in top-line organic constant currency YoY.
The company generated free cash flow of about $24 million as compared to $1.8 million last year, mainly by managing inventory levels.
Approximately $24 million of debt was paid down in the quarter, with the term loan debt at roughly 1.6%.
Business Progress:
In 2024, FDA 510(k) clearance was obtained for the Scout MD Surgical Guidance System and the commercial release of the Micro ACE, Advanced Micro-Access System.
The company successfully enrolled their first patient in the MOTION study geared toward assessing the safety and efficiency of genicular artery embolization (GAE) using Merit's Embosphere microspheres.
The company saw strong growth in the APAC region, especially China, with a 22% YoY growth.
The company plans on sustaining this growth due to favourable revenue mix, price uplift, and efficiency improvements.
Q2 2024 projections indicate a total revenue growth of 4% to 5% YoY on a GAAP basis and approximately 4.7% to 5.8% YoY on a constant currency basis.
The company plans for more product introductions and is ready for necessary research and development investments.
The company remains optimistic about long-term prospects in China, seeing significant opportunities in Japan and APAC.
Despite price pressure on some products, Merit competes favourably against magnetic technologies and remains confident in its ability to continue this trend. Future plans include seeking additional reimbursement for the Wrapsody device and expanding the dedicated sales group for its Bluegrass Angio products.
More details: Merit Medical Systems IR
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