Inari Medical (NARI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $145.8 million, up 23% year-over-year, driven by strong adoption across core and emerging therapies, expanded sales territories, and new accounts.

• Gross margin remained strong at 86.3% but declined from 88.4% last year due to product mix, ramp-up costs for new products, and international expansion.

• Net loss for Q2 2024 was $31.3 million, compared to net income of $2.1 million in Q2 2023, primarily due to higher operating expenses and increased income tax provision.

• Announced CFO transition: Mitch Hill retiring, Kevin Strange appointed as successor effective October 1, 2024.

• LimFlow acquisition and integration, full commercial launch of VenaCore, and positive reimbursement updates for LimFlow highlighted recent business developments.

Financial highlights

• Q2 2024 revenue: $145.8 million, up 23% year-over-year; gross profit: $125.8 million; gross margin: 86.3%.

• Operating expenses: $148.3 million (up from $106.7 million); R&D expense: $24.9 million (up 18.1%); SG&A: $114.2 million (up 33.4%).

• GAAP operating loss: $22.4 million; non-GAAP operating loss: $13.2 million after adjustments.

• Net loss: $31.3 million; EPS: -$0.54 (vs. $0.04 last year); weighted average shares outstanding: 58.1 million.

• Cash, cash equivalents, and short-term investments totaled $110 million at quarter end; no debt; $66.4–$75 million available under credit facility.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $594.5–$604.5 million, reflecting 20.5%–22.5% growth over 2023.

• Sustained operating profitability expected in the first half of 2025; sequential operating loss decreases projected for Q3 and Q4 2024.

• Q3 sequential growth expected to be about half of last year’s Q3; stronger year-over-year growth anticipated in Q4.