Treace Medical Concepts (TMCI) 5 Nov 24 2024 Q3 Earnings call transcript
In the recent earnings call for the third quarter of 2024, Treace Medical Concepts presented a positive outlook, showcasing solid revenue growth, strategic product launches, and a commitment to innovation. The call, led by CEO John Treace and CFO Mark Hair, provided insights into the company's performance and future plans.
Strong Financial Performance
Treace Medical Concepts reported a 11% year-over-year revenue growth in the third quarter, reaching $45.1 million. This growth can be attributed to increased sales of newer technologies, such as Adductoplasty and SpeedPlate, as well as a shift in product mix. The company's focus on commercial execution and expanding its surgeon base has contributed to this positive trend.
Market Expansion and New Product Launches
One of the most notable highlights of the call was the announcement of the limited market release of the Nanoplasty 3D MIS system, marking Treace's entry into the large metatarsal osteotomy market. This system, developed with a team of experienced surgeons, offers a 3D correction to relieve bunion pain while minimizing incision size and visible scar. The company's strategic move into this segment aligns with its goal of significantly increasing penetration into the overall bunion market.
Innovation and R&D Pipeline
Treace Medical Concepts is poised for further growth, with a loaded R&D pipeline that aims to significantly expand its technology and procedure offerings through 2025 and beyond. This includes the upcoming release of a second MIS osteotomy system, a micro Lapiplasty minimally invasive system, and a SpeedPlate Micro-Quad implant. These new offerings are expected to attract new surgeon customers and further strengthen Treace's position in the bunion correction space.
Regulatory and Reimbursement Updates
The call also addressed updates on regulatory matters, with CMS finalizing 2025 Medicare payment rates for hospital outpatient and ASC services, recognizing the value of Lapidus Fusion procedures. This reassignment of CPT code 28297 to APC-5115 with increased rates is expected to benefit Treace's customers and potentially broaden patient access to Lapidus procedures.
Looking Ahead
Treace Medical Concepts has revised its full-year 2024 revenue guidance to $204 million to $211 million, reflecting a 9% to 13% increase over 2023. The company aims for an adjusted EBITDA improvement of approximately 50% compared to 2023, with a goal of reaching adjusted EBITDA breakeven in 2025. The strategic product launches, regulatory updates, and a focused R&D pipeline position Treace for continued growth and success in the bunion correction market.