In This Article:
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Revenue: $41.4 million in the first quarter, an 11% increase from the previous year.
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U.S. Revenue: $6.2 million, exceeding the previous guidance of $5.5 million.
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Gross Profit: $27.8 million, representing 67.2% of revenue, a 160 basis point increase from the previous year.
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SG&A Expenses: $39.7 million, approximately $10.8 million higher than the first quarter of 2024.
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R&D Expenses: $5.1 million for the first quarter.
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Total Operating Expenses: $44.8 million, an increase of approximately $11.5 million from the previous year.
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Adjusted EBITDA: Loss of $12.1 million, an improvement from the $13.1 million loss in the fourth quarter.
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Cash Position: $69.2 million as of March 31, with an additional $25 million available under the credit facility.
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Cash Use: $21.2 million in the first quarter, with expectations to reduce by approximately $5 million per quarter throughout 2025.
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Revenue Guidance for 2025: $205 million to $210 million, representing growth of 23% to 26%.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Establishment Labs Holdings Inc (NASDAQ:ESTA) reported a strong start to 2025 with first-quarter revenue totaling $41.4 million, exceeding previous guidance.
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The U.S. launch of Motiva has been successful, with over 900 accounts onboarded and 84% reordering, indicating strong market adoption.
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The company is on track to achieve its first positive EBITDA quarter in 2025 and cash flow breakeven in 2026, demonstrating financial progress.
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The partnership with Meghan Trainor has generated significant media attention, with over 75 press articles and four billion impressions, enhancing brand visibility.
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The minimally invasive platform, including Mia and Preserve, is gaining traction and is expected to contribute significantly to future growth.
Negative Points
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Operating expenses increased by approximately $11.5 million from the previous year, primarily due to the U.S. launch and acquisition-related costs.
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The company experienced minimal sales into China in the first quarter, impacting overall revenue growth.
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Despite revenue growth, adjusted EBITDA was a loss of $12.1 million, indicating ongoing financial challenges.
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The Latin American market, particularly Brazil, continues to face challenges, affecting regional performance.
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The company remains cautious with its revenue guidance due to macroeconomic uncertainties and potential impacts from trade policies.
Q & A Highlights
Q: Can you confirm the mid-single-digit guidance for OUS growth and provide insights on consumer sentiment in regions like Brazil, Southeast Asia, and China? A: Yes, we haven't seen any impact on demand in our OUS business and remain confident in driving growth. Asia and Europe have stabilized with pockets of growth, while Latin America, particularly Brazil, remains challenging but is showing signs of stabilization.