In This Article:
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Total Revenue: $52.7 million for the second quarter.
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MACI Revenue: $44.1 million, a 21% increase year-over-year.
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Burn Care Revenue: $8.5 million, including Epicel revenue of $7.8 million and NexoBrid revenue of $0.8 million.
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Gross Margin: 70%, an increase of 430 basis points from the previous year.
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Operating Expenses: $42.6 million, up from $35.9 million in the same period of 2023.
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Net Loss: $4.7 million or $0.10 per share, compared to $5 million or $0.11 per share in Q2 2023.
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Adjusted EBITDA: $6.3 million, a 42% increase, representing 12% of net revenue.
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Operating Cash Flow: $18.5 million generated in the quarter.
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Cash and Investments: $154 million with no debt.
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Full-Year Revenue Guidance: $238 million to $242 million, reflecting 20% to 23% growth.
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Gross Margin Guidance: Increased to 71% for the full year.
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Adjusted EBITDA Margin Guidance: Increased to 21% for the full year.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vericel Corp (NASDAQ:VCEL) reported record second-quarter revenue of nearly $53 million, driven by strong growth in MACI and NexoBrid demand.
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The company achieved a record second-quarter gross margin of 70% and adjusted EBITDA growth of 42% compared to the previous year.
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MACI revenue increased by 21% in the second quarter, exceeding guidance, with a significant increase in biopsies and surgeon engagement.
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Vericel Corp (NASDAQ:VCEL) is on track to launch MACI Arthro, expanding its target surgeon base and addressing a significant market opportunity.
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The company expects FDA approval for a pediatric indication for NexoBrid, which could enhance its uptake in pediatric burn centers.
Negative Points
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Vericel Corp (NASDAQ:VCEL) reported a net loss of $4.7 million for the quarter, although this was an improvement from the previous year's loss.
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Operating expenses increased to $42.6 million, primarily due to development and pre-launch activities for MACI Arthro and increased headcount.
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Epicel revenue was lower than expected in the second quarter due to variability in patient treatments and health issues.
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The burn care market, particularly for Epicel, remains volatile, impacting quarterly revenue consistency.
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Despite strong revenue growth, the company still faces challenges in achieving consistent profitability on a quarterly basis.
Q & A Highlights
Q: Can you clarify the expectations for MACI's growth in the fourth quarter, especially with the potential Arthro launch? A: Joe Mara, CFO: We have increased our expectations for MACI to around 20% growth for the full year. The third quarter estimate is approximately $44.5 million, similar to the first two quarters. The fourth quarter will follow our typical seasonal pattern, and we expect MACI Arthro to be more of a 2025 driver.