Vericel Corp (VCEL) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic FDA ...

In This Article:

  • Total Revenue: $57.9 million, a 27% increase from the prior year.

  • Maci Revenue: $44.7 million, a 19% increase in the third quarter.

  • Burn Care Revenue: $13.2 million, a 66% increase, with Epicel revenue at $12.2 million.

  • NexoBrid Revenue: $1.1 million for the quarter.

  • Gross Profit: $41.7 million, representing 72% of net revenue, an increase of 480 basis points from 2023.

  • Operating Expenses: $44.1 million, up from $35.7 million in 2023.

  • Net Loss: $0.9 million or 2 per share, compared to $3.7 million or 8 per share in the prior year.

  • Adjusted EBITDA: $10 million, an 84% increase, representing 17% of revenue.

  • Operating Cash Flow: Over $10 million generated in the third quarter.

  • Cash and Investments: $151 million with no debt.

  • Full Year Revenue Guidance: $238 million to $242 million, implying 20% to 23% total revenue growth.

  • Gross Margin Guidance: Increased to 72% for the full year.

  • Adjusted EBITDA Margin Guidance: Increased to 22% for the full year.

Release Date: November 07, 2024

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

Positive Points

  • Vericel Corp (NASDAQ:VCEL) reported a 27% increase in total revenue for the third quarter, reaching approximately $58 million, surpassing their guidance.

  • The company achieved significant margin expansion and operating cash flow, with profit growth outpacing revenue growth.

  • Vericel Corp (NASDAQ:VCEL) received FDA approval for Macy Arthro and the NRI pediatric indication, positioning the company for sustained high revenue and profit growth.

  • Macy revenue grew 19% in the third quarter to $44.7 million, with strong growth drivers such as increased biopsies and surgeon engagement.

  • The company generated over $10 million in operating cash flow and ended the quarter with $151 million in cash and investments, maintaining a strong financial position with no debt.

Negative Points

  • Operating expenses increased to $44.1 million from $35.7 million in the same period last year, primarily due to development and commercial launch activities.

  • Net loss for the quarter was $0.9 million, although this was an improvement from the previous year's $3.7 million loss.

  • The company anticipates some impact on margins due to the depreciation of their new manufacturing facility starting next year.

  • Despite strong performance, the company remains cautious about predicting future growth rates for Nexobrid and Macy Arthro, indicating potential variability.

  • The burn care segment, while showing strong growth, remains difficult to predict due to variability in quarterly performance.