Inari Medical (NARI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $153.4 million, a 21.4% year-over-year increase, driven by expanded sales territories, new accounts, increased procedure adoption, global expansion, and new product launches.

• Gross margin remained strong at 87.1% in Q3 2024, though down from 88.5% prior year, reflecting product mix, ramp-up costs for new products, and increased international sales.

• Net loss for Q3 2024 was $18.4 million, or $0.31 per share, compared to net income of $3.2 million, or $0.06 per share, in Q3 2023, primarily due to higher operating expenses and increased fair value of contingent consideration.

• Cash, cash equivalents, and short-term investments totaled $111.6–$112 million at quarter end, with no long-term debt and access to a $75 million credit facility.

• Key milestones include FDA clearance and upcoming full market release of Artix, integration of LimFlow, and expansion plans for Japan and China.

Financial highlights

• Q3 2024 revenue: $153.4 million, up 21.4% year-over-year; nine months: $442.4 million, up 22.4%.

• Gross profit: $133.5 million (87.1% margin) in Q3 2024; nine months: $383.7 million (86.7% margin).

• GAAP operating loss: $13.6 million; non-GAAP operating loss: $0.4 million after adjustments for acquisition-related items and intangible amortization.

• Net loss: $18.4 million in Q3 2024; nine months: $73.9 million net loss.

• Operating cash flow for nine months: $1.9 million; cash and short-term investments at quarter-end: $111.6 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $601.5–$604.5 million, reflecting 21.9%–22.5% growth over 2023.

• Sustained GAAP operating profitability expected in the first half of 2025 and roughly break-even GAAP operating income in Q4 2024.

• Management anticipates continued robust growth in VTE, Emerging Therapies, and international markets, supported by premium gross margin and solid cash flow.

• Cash, short-term investments, and available credit expected to fund operations and capital needs for at least the next 12 months.