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• Revenue (Q4 2024): $68.7 million, a 10.4% increase over Q4 2023.

• Full Year Revenue (2024): $209.4 million, a 12% increase over 2023.

• Gross Margin (Q4 2024): 80.7%, compared to 81.6% in Q4 2023.

• Gross Margin (Full Year 2024): 80.4%, compared to 81.2% in 2023.

• Operating Expenses (Q4 2024): $55.7 million, down from $57.5 million in Q4 2023.

• Operating Expenses (Full Year 2024): $224 million, up from $203.4 million in 2023.

• Net Loss (Q4 2024): $0.5 million or $0.01 per share, compared to $6.3 million or $0.10 per share in Q4 2023.

• Net Loss (Full Year 2024): $55.7 million or $0.90 per share, compared to $49.5 million or $0.81 per share in 2023.

• Adjusted EBITDA (Q4 2024): $11.1 million, an improvement of 322% from Q4 2023.

• Adjusted EBITDA (Full Year 2024): Loss of $11 million, a 55% improvement from 2023.

• Cash Equivalents and Marketable Securities (End of 2024): $75.7 million, with access to an additional $26 million.

• 2025 Revenue Guidance: $224 million to $230 million, reflecting a 7% to 10% increase over 2024.

• 2025 Adjusted EBITDA Expectation: Break-even.

• 2025 Cash Burn Expectation: Decrease by approximately 50% compared to 2024.

• Warning! GuruFocus has detected 4 Warning Signs with TMCI.

Release Date: February 27, 2025

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

Positive Points

• Treace Medical Concepts Inc (NASDAQ:TMCI) reported a 10.4% revenue growth in Q4 2024, reaching $68.7 million, which was at the top end of their preliminary results.

• The company has a growing base of over 3,100 surgeon customers, which provides a ready audience for their expanding suite of technologies.

• TMCI's Lapiplasty system has treated over 120,000 patients since 2015 and is the dollar share leader in the US bunion market.

• The company introduced several new products, including the nanoplasty and percuplasty systems, which are designed to make minimally invasive osteotomies more accessible to surgeons.

• TMCI expects a positive impact from the increased reimbursement for CPT code 28,297, associated with Lapiplasty procedures, effective January 2025.

Negative Points

• Gross margin decreased slightly to 80.7% in Q4 2024 from 81.6% in Q4 2023, due to a product mix shift and increased inventory provisions.

• The company reported a net loss of $0.5 million in Q4 2024, although this was an improvement from a $6.3 million loss in Q4 2023.

• There is a potential risk of Lapiplasty cannibalization with the introduction of new osteotomy products.

• Q1 2025 is expected to be a challenging quarter due to tough year-over-year comparisons, with anticipated low single-digit growth.

• Operating expenses increased to $224 million for the full year 2024, reflecting higher stock-based compensation and investments in product innovation.