Inari Medical Achieves Record Revenue in Q3, Aiming for Profitability

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Inari Medical Achieves Record Revenue in Q3, Aiming for Profitability

Inari Medical Inc. (NARI) reported a strong performance in the third quarter of 2024, achieving a record revenue of $153.4 million, a 21% increase year-over-year. The company, known for its innovative medical devices for thrombectomy procedures, raised its full-year revenue guidance and aims to reach operational profitability in the first half of 2025.

International sales showed remarkable growth, particularly in Europe and Latin America. Regulatory approvals in Brazil, China, and Japan bolstered expectations. Despite a GAAP operating loss in this quarter, Inari Medical remains optimistic about the future, especially regarding the anticipated impact of PEERLESS study data and growth in the Emerging Therapies segment.

Key Highlights:

  • Inari Medical's Q3 2024 revenue increased by 21% year-over-year to $153.4 million.
  • International sales grew by 76.4%, with significant growth recorded in Europe and Latin America.
  • The company raised its full-year revenue expectation to a range between $601.5 million and $604.5 million.
  • The GAAP operating loss for Q3 was $13.6 million, with a net loss of $18.4 million.
  • The PEERLESS study and the launch of new products like LimFlow and Artix are expected to support future growth.

Company Outlook:

  • Inari Medical aims for sustainable operational profitability in the first half of 2025.
  • The company is confident that the Emerging Therapies segment has the potential to represent at least 20% of total revenue in the future.
  • Management continues to adhere to profitability and consistent historical guidance practices.

Negative Aspects:

  • In Q3 2024, Inari Medical reported a GAAP operating loss of $13.6 million and a net loss of $18.4 million.
  • Operating expenses rose to $147.1 million in this quarter.

Positive Aspects:

  • International sales grew by 76.4%, supported by strong adoption in Europe and regulatory approvals in key markets.
  • The company is optimistic about the sustained growth of LimFlow and the performance of the Artix device.
  • Stable pricing trends in the U.S. VTE market and the transition to the VTE PPP pricing program are expected to provide a favorable financial tailwind.

Shortcomings:

  • Despite record revenue, the company reported a loss of $0.31 per share.
  • The net loss widened from a profit of $2.1 million in Q3 2023 to a loss of $18.4 million.

Q&A Highlights:

  • The company discussed the uniqueness of the FlowTriever system and its comparison with catheter-directed thrombolysis in the PEERLESS study.
  • A sequential improvement of $9 million in operational profitability was reported for Q3, excluding a one-time impairment charge.

Inari Medical's third quarter performance signals a company that is progressing towards profitability while making significant investments in international expansion and new product development. Its strategic focus on penetrating regulatory approvals and particularly high-growth potential international markets may provide a strong positioning for future success. With the upcoming presentation of PEERLESS study data and ongoing development of the Emerging Therapies portfolio, Inari Medical is preparing to capture a larger share of the thrombectomy market. However, the journey towards sustainable profitability remains a critical juncture as the company balances growth with financial discipline.