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01/11 07:36
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Positive factors include revenue growth, improved EBITDA, and new product launches. However, the net loss, competitive pressures, and slight decrease in gross margin temper enthusiasm. The Q&A section indicates strong interest in new products but lacks clarity on reimbursement impacts. Given the balance of these factors, the stock price is likely to remain stable, warranting a neutral sentiment.
Revenue $52,600,000, representing 3% growth over the first quarter of twenty twenty four; adjusted for one less selling day, growth was 4.5%. Growth was mainly driven by an increase in bunion procedure kits sold compared to the prior year.
Gross Margin 79.7% in the first quarter of twenty twenty five compared to 80.2% in the first quarter of twenty twenty four; a slight decrease attributed to overall cost management.
Total Operating Expenses $57,500,000 in the first quarter of twenty twenty five compared to $59,900,000 in the first quarter of twenty twenty four; reductions reflect continued execution on expense management initiatives.
Net Loss $15,900,000 or $0.25 per share compared to a net loss of $18,700,000 or $0.30 per share in the first quarter twenty twenty four; improvement attributed to better revenue performance and cost management.
Adjusted EBITDA Loss $3,800,000 compared to $8,300,000 in the first quarter twenty twenty four, an improvement of 54%; this marks the third consecutive quarter of adjusted EBITDA improvements.
Cash, Cash Equivalents and Marketable Securities $76,100,000 as of 03/31/2025, compared to $75,700,000 as of 12/31/2024; modest cash build attributed to seasonal timing of cash collections.
Total Liquidity Approximately $98,600,000 as of 03/31/2025, including access to an additional $22,500,000 of cash through existing revolver; reflects strong balance sheet strength and flexibility.
New Bunion Systems: Three new bunion systems, including nanoplastic and percuplasty 3D MIS osteotomy systems and SpeedMTP MTP fusion system, are expected to enhance market penetration.
IntelliGuide PSI: Launch of IntelliGuide PSI, a patient-specific pre-op planning and cut guide solution, has received positive feedback from surgeons.
SpeedPlate MicroQuad Implant: Introduction of SpeedPlate MicroQuad implant for small incision fusion approaches, enhancing the microlapoplasty and mini adductoplasty procedures.
Speed Aiken Implant: Launch of Speed Aiken implant for Aiken osteotomies, which are frequently performed in bunion cases.
Lapoplasty Lightning System: Plans for a limited market release of the next generation lapoplasty platform, Lapoplasty Lightning system, by the end of the year.
Market Positioning: Trese Medical is positioned as the dollar share leader in the U.S. bunion market, with a strong customer base of over 3,100 surgeons.
Market Expansion: The new product launches will allow Trese Medical to target virtually 100% of surgeon and patient preferences for bunion correction.
Revenue Growth: First quarter revenue was $52.6 million, a 3% increase year-over-year, with adjusted growth of 4.5%.
Cost Management: Total operating expenses decreased to $57.5 million, reflecting continued execution on expense management initiatives.
Cash Management: Cash and equivalents were $76.1 million, with total liquidity of approximately $98.6 million, supporting strategic initiatives.
Strategic Shift: Transitioning from a single technology company to a comprehensive bunion solutions provider, enhancing product offerings and market reach.
Focus on R&D: Commitment to continuous innovation with a robust pipeline of new technologies to maintain market leadership.
Competitive Pressures: The company faces competition from several companies, including those offering lapoplasty knockoffs. However, Trese Medical believes its lapoplasty remains the superior option due to its clinical outcomes and focus on bunion procedures.
Regulatory Issues: There is a limited tariff exposure as most inventory is manufactured in the U.S., with a small portion in Europe subject to tariffs. The impact on cost of goods sold is expected to be immaterial.
Supply Chain Challenges: The company has high confidence in inventory timing and volumes to support customer demand for new systems, indicating no immediate supply chain challenges.
Economic Factors: Elective foot and ankle procedures, including bunion surgeries, have been pushed out, affecting scheduling. However, this is expected to benefit the company as procedures are likely to occur later in the year when insurance deductibles are met.
Financial Performance Risks: The company reported a net loss of $15.9 million in Q1 2025, indicating ongoing financial challenges despite improvements in adjusted EBITDA.
Market Dynamics: There is variability in the timing and scheduling of procedures, which could impact revenue growth in the short term, but the company expects stronger performance in the back half of the year.
Revenue Growth: Revenue in Q1 2025 was $52,600,000, representing a 3% growth over Q1 2024, and adjusted for one less selling day, growth was 4.5%.
New Product Launches: Three new bunion correction systems will be launched in Q3 2025, targeting 100% of surgeon and patient preferences for bunion correction.
Market Positioning: Trese Medical aims to establish itself as a comprehensive bunion solutions company, expanding its portfolio to include five best-in-class systems.
Surgeon Engagement: High interest from surgeons in new products, with oversold training events indicating strong market demand.
R&D Initiatives: Plans to initiate a limited market release of the next generation lapoplasty platform, the Lightning system, by the end of 2025.
Revenue Guidance: Reiterating revenue guidance for 2025 between $224,000,000 and $230,000,000, representing growth of 7% to 10% over 2024.
Adjusted EBITDA: Expecting breakeven adjusted EBITDA for full year 2025 and a 50% reduction in cash burn compared to 2024.
Q2 Revenue Expectations: Anticipating Q2 revenue growth to be consistent with Q2 2024, with sequential growth expected in subsequent quarters.
Shareholder Return Plan: The company is focused on improving profitability and has plans to reduce cash burn by approximately 50% for the full year 2025 compared to 2024. They are also reaffirming their revenue guidance for 2025, expecting revenue between $224,000,000 and $230,000,000, which reflects a growth of 7% to 10% over the previous year.
The earnings call presents mixed signals: while revenue and adjusted EBITDA show improvement, the net loss has increased, and the core Lapiplasty business is facing challenges due to shifting preferences towards minimally invasive procedures. Additionally, management's refusal to provide 2026 guidance and reliance on general optimism without specifics raises concerns. The decrease in gross margin and increased operating expenses further contribute to a negative sentiment, despite progress in profitability and liquidity management.
The earnings call highlights a 7% revenue growth and improved net loss, indicating positive financial performance. New product launches and strong surgeon engagement suggest potential for market expansion. Despite slight gross margin decline, expense reduction and improved EBITDA loss reflect financial health. Management's optimistic guidance and expectations for Q4 and 2026, combined with a strong product pipeline, support a positive outlook. The Q&A session reinforces confidence in future growth, although some uncertainty remains. Overall, the sentiment is positive, with potential for stock price increase.
The earnings call presents a mixed outlook. Positive factors include revenue growth, improved EBITDA, and new product launches. However, the net loss, competitive pressures, and slight decrease in gross margin temper enthusiasm. The Q&A section indicates strong interest in new products but lacks clarity on reimbursement impacts. Given the balance of these factors, the stock price is likely to remain stable, warranting a neutral sentiment.
The earnings call reveals strong financial performance with 10% revenue growth in Q4 and a 12% increase for 2024, despite a slight decline in gross margins. Guidance for 2025 shows continued revenue and EBITDA improvement. Product innovation and market expansion efforts are promising, though competitive pressures and supply chain challenges exist. The Q&A indicates positive sentiment from analysts, with expectations for higher growth in later quarters. No share repurchase plan is a minor negative, but overall, the combination of positive financials, optimistic guidance, and product pipeline supports a positive stock price reaction.
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