Avinger (AVGR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $1.8–$1.85 million, down from $2 million in Q2 2023 and $1.9 million in Q1 2024, with a net loss of $4.36–$4.4 million for the quarter and a 24% headcount reduction to streamline costs and focus on core markets.

• Gross margin improved to 20% in Q2 2024 from 18% in Q1 2024, but declined from 30% in Q2 2023 due to lower production and rising material costs.

• Strategic partnership with Zylox-Tonbridge secured a $7.5 million investment, opened access to the Greater China market, and includes future manufacturing collaboration.

• Advanced coronary CTO crossing device toward FDA IDE submission, with clinical site selection underway and IDE filing expected by end of Q3 2024.

• Completed limited launch of Pantheris LV peripheral atherectomy catheter, with full commercial launch imminent.

Financial highlights

• Q2 2024 revenue: $1.8–$1.85 million (down 10% year-over-year); H1 2024 revenue: $3.71 million (down 6%).

• Gross margin: 20% in Q2 2024 (up from 18% in Q1 2024, down from 30% in Q2 2023); H1 2024 gross margin: 19%.

• Operating expenses were $4.5 million in Q2 2024, down from $5.4 million in Q1 2024, but up from $4.3 million in Q2 2023.

• Net loss for Q2 2024 was $4.36–$4.4 million; H1 2024 net loss was $9.88 million.

• Adjusted EBITDA loss was $3.8 million in Q2 2024, compared to $3.9 million in Q1 2024 and $3.4 million in Q2 2023.

Outlook and guidance

• Full effect of cost reductions expected in the second half of 2024, with anticipated improvements in gross margin and reduced operating costs.

• Cash on hand and expected revenues projected to fund operations only through Q4 2024; additional capital required to continue operations and meet Nasdaq requirements.

• IDE filing for coronary CTO device anticipated by end of Q3 2024, with clinical study potentially starting in early 2025 and 510(k) filing targeted for 2026.

• Expects some revenue softening in the peripheral business in the back half of 2024 due to reduced sales force, but sees upside from Zylox partnership in 2025.