Inari Medical (NARI) Q2 Earnings call transcript Jul 30, 2024
2min read Inari Medical, Inc. recently reported its second-quarter 2024 financial performance, showcasing a robust 23% year-over-year growth and record revenue of $145.8 million. The company's strong showing was underpinned by its market-leading PE and DVT therapies, expanding solutions for new patient populations, and a growing international business. Inari's second-quarter success was further highlighted by its announcement of the retirement of CFO Mitch Hill and the appointment of Kevin Strange as his successor.
Transition of Leadership: Mitch Hill's Retirement and Kevin Strange's Appointment
Mitch Hill's retirement marks the end of a successful career spanning four decades, with his tenure at Inari being particularly noteworthy. Joining the company in 2019, Hill played a crucial role in building and scaling Inari's financial, operating, and technology foundation, contributing significantly to the company's IPO in May 2020 and the identification and development of Kevin Strange as his successor. His commitment to Inari's mission and his unwavering patience have been instrumental in the company's growth. The management team expressed confidence in Strange's ability to lead Inari's finance and accounting organization into the next phase of growth and impact.
Strategic Initiatives and Financial Outlook
Inari's second-quarter performance was marked by strong contributions across its portfolio, with global VTE revenue of $138 million and global emerging therapies revenue of over $8 million. The company's international business also showed significant growth, with revenue of $10 million. Looking ahead, Inari is increasing its annual revenue guidance to $594.5 million to $604.5 million and expects to reach sustained operating profitability in the first half of 2025.
Inari's strategic objectives include driving strong sustainable growth across its VTE, emerging therapies, and international businesses. The company's VTE portfolio, which includes market-leading PE and DVT therapies, is expected to continue driving growth, with VTE revenue expected to reach high double-digit penetration rates. Inari's emerging therapies, which target new patient populations outside of VTE, are also poised for significant growth, with the company expecting them to account for at least 20% of its revenue in the future.
Clinical Trials and Regulatory Approvals
Inari's clinical initiatives, particularly the PEERLESS trial, are a significant focus. PEERLESS is the first of three major RCTs designed to evaluate patient outcomes using FlowTriever as compared to catheter-directed thrombolysis. The study's results are expected to further establish FlowTriever's competitive moat as the optimal interventional therapy for intermediate-risk PE patients. Inari is also working on regulatory approvals for its LimFlow business, with the recent FDA approval of its second-generation stent delivery system marking a key milestone. The company is also making progress in treating patients in China and Japan, with plans to launch in both markets by the end of the year.
Investor and Analyst Interactions
During the earnings call, key shareholders and investors raised questions about the company's growth strategies, market dynamics, and regulatory matters. Analysts expressed concern over the impact of the DOJ inquiry on the company's commercial strategy and the timeline for resolving it. Inari's management team provided updates on the situation, reassuring investors that the investigation has had no impact on their commercial strategy or tactics. The management team also discussed the company's strategic focus on driving growth and achieving sustained operating profitability in the first half of 2025, with expectations for sequential operating loss decreases in Q3 and Q4.
Conclusion
Inari Medical's second-quarter 2024 performance demonstrates the company's robust growth and strategic positioning. The company's market-leading products, expanding solutions for new patient populations, and international growth are key drivers of its success. The retirement of Mitch Hill and the appointment of Kevin Strange as his successor mark a new chapter in Inari's leadership, with confidence in Strange's ability to lead the company into the next phase of growth. Looking ahead, Inari's strategic initiatives, clinical trials, and regulatory approvals position the company for continued growth and market leadership in the VTE space.