Theratechnologies (TH) Q3 2024 earnings summary

Executive summary

• Achieved profitability in Q3 2024 with Adjusted EBITDA of $7.2 million and net profit of $3.1 million, marking a significant turnaround and sustained positive performance.

• Strategic focus on commercializing innovative treatments, optimizing cost structure, and North American partnerships has driven consistent bottom-line growth.

• Strong cash position of $39 million and robust operational cash flow support ongoing and future initiatives.

• Fiscal 2024 revenue guidance revised to $83–$85 million, with Adjusted EBITDA guidance increased to $17–$19 million.

• Company anticipates making up for Q4 2024 sales shortfall in early 2025 following a temporary EGRIFTA SV supply disruption.

Financial highlights

• Q3 2024 net sales reached $22.6 million, up 8.4% year-over-year; nine-month revenue was $60.9 million, up 4.2%.

• EGRIFTA SV sales grew 27% year-over-year to $16.7 million; Trogarzo sales declined to $5.9 million from $7.7 million year-over-year due to competition.

• Gross margin for EGRIFTA SV was 91%; Trogarzo margin at 48%; overall cost of sales for Q3 2024 was $4.5 million (20% of revenue).

• R&D expenses dropped 52% to $2.6 million; SG&A down 19% to $3 million; selling expenses for Q3 2024 were $6.3 million (-6% YoY); G&A expenses: $2.9 million (-21% YoY).

• Net finance costs were $2.4 million, with $2.3 million in interest on the Marathon loan.

Outlook and guidance

• 2024 revenue guidance revised to $83–$85 million due to EGRIFTA SV supply constraints, not demand.

• Adjusted EBITDA guidance raised to $17–$19 million for 2024, reflecting cost discipline and commercial focus.

• Expectation to make up for Q4 2024 sales shortfall in early 2025 as supply normalizes.

• Confident in long-term growth strategy and ongoing pipeline development.

• Trogarzo sales expected to remain stable in 2025.