Allurion Technologies, Inc. (“Allurion” or the “Company”) (NYSE: ALUR), a company dedicated to ending obesity, today announced preliminary unaudited results for the fourth quarter and full year 2023. The Company also issued its preliminary 2024 outlook, reflecting an increased focus on driving sustained procedural volume growth ahead of key FDA milestones while reducing cost structure, optimizing capital structure, and accelerating the path to profitability.
“We believe procedure volume growth of 30% in 2023 substantiates the significant underlying demand for the Allurion Program, particularly as the efficacy of our offerings continues to be validated by patient results,” said Dr. Shantanu Gaur, CEO of Allurion. “Simultaneously, we swiftly adapted our spending to the evolving macro environment, channeling investments into the most promising aspects of our strategy and preserving cash as we advance towards FDA milestones for the Allurion Balloon. I am enthusiastic about our growth catalysts in 2024 and beyond, as we continue to enhance outcomes for patients and create value for our shareholders."
Preliminary Unaudited 2023 Financial Highlights
- 2023 full year revenue is expected to be in the range of $53 - $54 million with gross profit sustained at 77% - 78% of revenue
- Fourth quarter revenue is expected to be in the range of $8.1 - $8.3 million, reflecting macroeconomic headwinds in certain markets leading to temporarily lower re-order rates during the period as distributors and accounts in certain markets adjusted their inventory levels
- Procedural volume grew by 30% compared to 2022, reflecting strong and growing demand for the Allurion Program, particularly in Europe where procedural volume grew by 41% in 2023 compared to 2022 and 44% in the fourth quarter compared to the same period in 2022
- Cash balance as of December 31, 2023 of $38 million reflects cash burn of $22 million in the fourth quarter and paydown of the term loan by $20 million, reducing outstanding principal to $40 million
- Expense reductions initiated in the fourth quarter of 2023 and continued in 2024 include a reduction in force of approximately 30% of headcount since December 2023, which is expected to reduce 2024 cash burn to approximately $7 - $8 million per quarter
2024 Outlook
- Anticipated procedural volume growth of approximately 20%, despite a reduction in overall marketing spend, reflecting increased penetration in key direct markets and reallocation of marketing spend to more efficient channels
- Revenue guidance of $60 - $65 million, reflecting growth of approximately 13% - 23% year over year
- Expected gross margins of 77-79%, reflecting durable pricing of our gastric balloon as well as initial commercialization efforts of the digital platform
- Targeted cash burn reduced to approximately $7 - $8 million per quarter
Key 2024 Growth Catalysts
- Accelerated procedure volume growth across direct markets where Allurion has fully established direct sales and support models
- Release of new clinical data, including the AUDACITY FDA pivotal trial read-out expected by end of year, and additional data validating Allurion’s best-in-class weight loss and weight maintenance platform
- Increasing awareness and interest in non-invasive weight loss driven by the rise of GLP-1 drugs with the potential for sustained long-term tailwinds for Allurion
- Rapid scaling of Allurion’s digital capabilities including new commercial partnerships and expansion of existing high-margin deals, catalyzed by the release of its AI-powered Coach Iris platform and the addition of Brian Conyer to lead digital commercialization efforts
- Growth in existing strategic partnerships, including Allurion’s partnership with Medtronic
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