NASDAQ$TMCI

Treace Medical Concepts Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a 23% increase in revenue compared to the same period last year, driven by an expanded surgeon customer base and increased adoption of newer technologies.

Treace Medical Concepts reported a revenue of $40.8 million for Q3 2023, a 23% increase year-over-year. The company's gross margin was 80.4%. They are updating full-year 2023 revenue guidance to $182 million to $186 million.

  • Revenue of $40.8 million in the third quarter, a 23% increase over same period last year.
  • Blended average revenue per Lapiplasty® procedure kit sold was record high $6,311, a 9% increase over same period last year.
  • Gross margin of 80.4% in the third quarter 2023.
  • Third quarter 2023 revenue contribution from direct sales channel increased to 81% of sales compared to 74% during third quarter 2022.

Headline financials

Total Revenue

$40.8M

Previous: $33.1M+23.3%
EPS (adj)

-$0.28

Previous: -$0.22-27.3%
Capital Expenditures

-$9.21M

Previous: -$12.5M+26.4%
Free Cash Flow

-$26.7M

Previous: -$24.6M-8.5%
Net Income

-$17.5M

Previous: -$12.1M-44.4%
Operating Income

-$17.8M

Previous: -$11.3M-57.4%
Gross Profit

$32.8M

Previous: $26.4M+23.9%
Cash & Equivalents

$7.28M

Previous: $88.5M-91.8%
Total Assets

$240M

Previous: $156M+53.6%
R&D Expense

$4.35M

No prior period
Stock-Based Comp

$5.19M

Previous: $2.27M+128.8%

Revenue & EPS history

Treace · Revenue · Quarterly

$40.8M

Q3 2023+23.3%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Treace is updating its full-year 2023 revenue guidance to $182 million to $186 million and expects positive adjusted EBITDA in the fourth quarter of 2023.

Tailwinds

  • The company expects positive adjusted EBITDA in the fourth quarter of 2023.
  • The company anticipates modest improvement in adjusted EBITDA for full-year 2023 compared to 2022.
  • New technologies are already starting to make a positive impact on customer demand.
  • The company has the right strategy in place to outpace its competitors.
  • The company aims to drive continued market penetration and deliver strong growth for the remainder of this year and beyond.

Headwinds

  • The company updated its full-year 2023 revenue guidance to $182 million to $186 million, which is lower than the prior guidance of $191 million to $197 million.
  • The company's year-to-date surgeon count was impacted by prioritized travel and vacations for its patient demographic.
  • The company made the strategic decision to further refine its SpeedPlate™ platform, extending its timeline to achieve full commercial supply until the first quarter of 2024.
  • Increased operating expenses in the third quarter of 2023 reflect strategic investments in its expanding direct sales channel, investments in product innovation, increased capacity requirements, as well as support for other commercial initiatives.
  • Third quarter net loss attributable to common stockholders was ($17.5) million, or ($0.28) per share, compared to ($12.1) million, or ($0.22) per share, for the same period of 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-5.8%

Avg return

Earnings day

-5.9%

Avg return

5 days after

-3.7%

Avg return

30 days after

33%

7 / 21 earnings

Positive

+43.3%

Q3 2024

Best reaction

-62.8%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.7%+31.8%+82.3%
Q4 2025-11.0%-30.0%-41.9%
Q3 2025-28.6%-46.6%-56.0%
Q1 2025-9.5%-10.9%-22.9%
Q4 2024-2.1%+0.0%-7.4%
Q3 2024+43.3%+48.1%+42.7%
Q2 2024+2.7%-8.5%-13.9%
Q1 2024-62.8%-60.9%-45.5%
Q4 2023-5.7%-6.4%-8.9%
Q3 2023-42.1%-32.0%-11.4%
Q2 2023-16.9%-20.3%-31.3%
Q1 2023-5.5%-4.9%-0.9%
Q4 2022+21.1%+19.0%+37.5%
Q3 2022+1.9%+16.1%+13.7%
Q2 2022-1.3%+1.0%+10.1%
Q1 2022-14.4%-30.2%-9.3%
Q4 2021-1.0%-7.4%-5.7%
Q3 2021-0.8%-6.6%-28.5%
Q2 2021-3.3%-5.9%-3.2%
Q4 2020+4.7%+14.9%+11.5%
Q1 2021+4.7%+14.9%+11.5%
Q3 2020
Q2 2020
Q1 2020

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