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Tenon Medical Inc (TNON) Q4 2024 Earnings Call Highlights: Navigating Growth Amidst Challenges

In This Article:

  • Full Year Revenue: $3.3 million, a 12% increase from the prior year.

  • Fourth Quarter Revenue: $770,000, a 4.7% decrease from the same quarter in the previous year.

  • Gross Margin for Full Year: 52%, up from 42% in the previous year.

  • Fourth Quarter Gross Profit: $353,000 or 46% of revenue, compared to 69% in the prior year quarter.

  • Operating Expenses for Full Year: $15.5 million, down from $17 million in the previous year.

  • Net Loss for Full Year: $13.7 million, compared to $15.6 million in the prior year.

  • Cash and Cash Equivalents: $6.5 million as of December 31, 2024, up from $2.4 million the previous year.

  • Capital Raise: $3 million in gross proceeds received recently.

  • Outstanding Debt: None as of December 31, 2024.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tenon Medical Inc (NASDAQ:TNON) achieved a 12% revenue growth for the full year 2024, reaching $3.3 million.

  • Gross margin improved by 10 percentage points to 52% for the year, indicating better profitability.

  • The company completed the Alpha clinical review of its second-generation Catamaran SE platform, which was well-received by physicians.

  • Tenon Medical Inc (NASDAQ:TNON) received three new US patents related to its Catamaran portfolio, enhancing its competitive position.

  • The company has a strong cash position with $6.5 million in cash and cash equivalents as of December 31, 2024, and no outstanding debt.

Negative Points

  • Fourth-quarter revenue declined by 4.7% compared to the prior year, primarily due to reimbursement pre-authorization headwinds.

  • Gross profit in the fourth quarter of 2024 decreased to 46% of revenue from 69% in the same quarter of 2023.

  • Operating expenses for the year remained high at $15.5 million, despite a decrease from the previous year.

  • The company reported a net loss of $13.7 million for the year ended December 31, 2024.

  • Reimbursement and pre-authorization delays continue to impact the number of surgical procedures performed.

Q & A Highlights

Q: Can you provide an update on the reimbursement landscape and any improvements in pre-approvals with the new data available? A: Steven Foster, CEO: Tenon Medical doesn't directly control the reimbursement environment but actively works with decision-makers to bring clarity. Progress is being made, but it's a process without a specific completion date. Clarity is needed for coders and payers, and while procedures are being approved, it requires additional time and appeals, slowing the process.