The following is a summary of the Paragon 28, Inc. (FNA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Paragon 28 globally achieved a Q1 2024 revenue of $61.1 million, an increase of 17.4%.
US business saw net revenue of $51.1 million in Q1, a 13.5% increase, with contributions from the increase in producing sales rep roster.
International net revenue for Q1 was $10 million, indicating a 42.2% reported growth.
Gross profit margin for Q1 was 80%, a decrease from 82.9% in Q1 2023 due to higher supplier prices and product/geographic mix shift.
Q1 2024 saw an increase in Selling, general, and administrative expenses, reaching $54.2 million, a rise of 23.7% from Q1 2023.
The company reported an increased adjusted EBITDA loss of $5.5 million for Q1 2024.
Operating cash flow was negative $11 million in Q1 2024 compared to negative $5 million in Q1 2023.
Paragon ended Q1 2024 with a total liquidity of $58 million in cash and $50 million available through a credit facility.
2024 net revenue guidance is reaffirmed at $249 million to $259 million.
Business Progress:
Record six new product launches and a limited market release in Q1 targeted high-growth Foot and Ankle segments.
Investment in product development continued, adding 6% to the US producing sales rep roster.
Significant international market expansions were made, particularly in the United Kingdom and Australia.
Over 25 active projects in pipeline, with several aligned with Smart28.
Reiteration of commitment to operating leverage and cost management while also investing in commercial and educational opportunities.
Expectation of OpEx reduction as a percentage of revenue in future quarters as revenue increases and previous operational expense investments are leveraged.
Successful launching of new products in the bunion market, like MIS, bunion portfolio, and FJ 2000, which are surpassing expectations.
Continuation of investment in innovation and technology with a consistent percentage of revenue on R&D planned for the future.
Geographic expansion plans underway including an increase in the US salesforce and broader international expansion.
Full product launch planned in the coming months for the Lapidus clamp, currently in limited release.
More details: Paragon 28 IR
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