Inari Medical Reports First Quarter 2024 Financial Results
April 30, 2024 at 04:05 pm
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IRVINE, Calif., April 30, 2024 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today reported financial results for its first quarter ended March 31, 2024.
First Quarter Financial and Recent Business Highlights
Generated revenue of $143.2 million in Q1 of 2024, up 23.3% over the same quarter last year.
GAAP operating loss was $17.2 million in Q1 of 2024, compared to a $5.3 million operating loss in the same quarter of last year.
Non-GAAP operating loss was $5.6 million in Q1 of 2024, compared to a $5.3 million non-GAAP operating loss in the same quarter of last year.
“Our strong first quarter performance reflected crisp execution across our three growth pillars, as we continued to drive adoption of our highly differentiated, purpose-built toolkits across large, attractive markets,” said Drew Hykes, CEO of Inari Medical. “We also continued to grow our powerful commercial engine and invest in high quality, market impacting clinical data, including our PEERLESS study, which remains on track for presentation in the second half of 2024. Lastly, we continue to deliver a premium financial profile, characterized by best-in-class gross margin and operating expense leverage, excluding deal-related costs. Taken together, these efforts reflect our unwavering commitment to our mission and addressing unmet patient needs.”
First Quarter 2024 Financial Results Revenue was $143.2 million for the first quarter of 2024, up 23.3% compared to $116.2 million for the first quarter of 2023. The increase over the prior year quarter was driven primarily by increased adoption of our procedures, new products, and global commercial expansion.
Gross profit was $124.3 million for the first quarter of 2024, compared to $102.4 million for the first quarter of 2023. Gross margin was 86.8% for the first quarter of 2024, compared to 88.2% for the for the first quarter of 2023. The year-over-year change was due increasing internationalization of the business, ramp up costs associated with new products, and product mix.
Operating expenses for the first quarter of 2024 were $141.5 million, compared to $107.8 million for the first quarter of 2023. The increase was mainly driven by personnel-related expenses, including commissions and stock-based compensation associated with increased headcount to fund the expansion of the commercial, research and development, clinical, and support organizations; change in fair value of the contingent consideration liability; professional fees; and amortization expense related to an intangible asset acquired in the LimFlow acquisition.
GAAP operating loss was $17.2 million in the first quarter of 2024, compared with a $5.3 million GAAP operating loss for the first quarter of 2023.
Non-GAAP operating loss was $5.6 million in the first quarter of 2024. The following items were excluded from the non-GAAP operating loss: change in fair value of contingent consideration liability of $6.3 million, acquisition-related costs of $2.8 million, and acquired intangible asset amortization of $2.5 million. There were no non-GAAP adjustments related to the company’s operating loss for the first quarter of 2023.
Net loss was $24.2 million for the first quarter of 2024 and net loss per share was $0.42 on a weighted-average basic and diluted share count of 57.9 million, compared to a net loss of $2.2 million and a net loss per share of $0.04 on a weighted-average basic and diluted share count of 54.8 million, in the same period of the prior year.
Full Year 2024 Revenue Guidance and Operating Income Outlook
Inari expects full year 2024 revenue of $592.5 million to $602.5 million, reflecting growth of approximately 20% to 22% over 2023, and a raise versus the prior 2024 revenue guidance of $580 million to $595 million.
The company expects to reach sustained operating profitability in the first half of 2025.
Webcast and Conference Call Information Inari Medical will host a conference call to discuss the first quarter 2024 financial results after market close on April 30, 2024 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live by dialing (844) 825-9789 for domestic callers or (412) 317-5180 for international callers. The live webinar and presentation may be accessed by visiting the Events Section of the Inari investor relations website at ir.inarimedical.com.
Use of Non-GAAP Financial Measures This press release contains references to non-GAAP operating income (loss), which is considered a non-GAAP financial measure. This means that non-GAAP operating income (loss) is determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). As used by Inari, non-GAAP operating income (loss) excludes from GAAP operating income (loss) the following items: amortization of acquired intangible assets, acquisition-related costs and fair value adjustment to our contingent consideration liability. We present the non-GAAP operating income (loss) to exclude these charges because we believe these charges are significantly impacted by the timing and valuation of acquisitions, such as our LimFlow acquisition completed in the fourth quarter of 2023. Our management believes the presentation of non-GAAP operating income (loss) is useful because it provides meaningful comparisons to prior periods and provides visibility to our underlying operating performance and an additional means to evaluate the cost and expense trends excluding the impact of these acquisition-related items, which are not related to our core business operations.
Our definition of non-GAAP operating income (loss) may differ from similarly titled measures used by others. Non-GAAP operating income (loss) should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. We encourage investors to review the reconciliation of non-GAAP operating income (loss) to GAAP operating income (loss), which has been provided in the financial statement tables included in this press release.
About Inari Medical, Inc. Patients first. No small plans. Take care of each other. These are the guiding principles that form the ethos of Inari Medical. We are committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underserved health needs. In addition to our purpose-built solutions, we leverage our capabilities in education, clinical research, and program development to improve patient outcomes. We are passionate about our mission to establish our treatments as the standard of care for venous thromboembolism and four other targeted disease states. We are just getting started. Learn more at www.inarimedical.com and connect with us on LinkedIn, X (Twitter), and Instagram.
Forward Looking Statements Statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include expectations regarding Inari’s core business, its ability to integrate LimFlow, expectations regarding future growth, Inari's ability to meet customers' needs, and timing for achieving sustained operating profitability, and are based on Inari’s current expectations, forecasts, and assumptions. Forward-looking statements are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2023, and in Inari’s other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.
Investor Contact: John Hsu, CFA VP, Investor Relations 949-658-3889 IR@inarimedical.com
INARI MEDICAL, INC. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands, except share and per share data) (unaudited)
Three Months Ended March 31,
2024
2023
Revenue
$
143,194
$
116,167
Cost of goods sold
18,893
13,741
Gross profit
124,301
102,426
Operating expenses
Research and development
26,880
22,064
Selling, general and administrative
103,055
85,700
Change in fair value of contingent consideration
6,303
—
Amortization of intangible asset
2,461
—
Acquisition-related expenses
2,779
—
Total operating expenses
141,478
107,764
Loss from operations
(17,177
)
(5,338
)
Other income (expense)
Interest income
1,191
4,145
Interest expense
(78
)
(40
)
Other (expense) income
(23
)
39
Total other income
1,090
4,144
Loss before income taxes
(16,087
)
(1,194
)
Provision for income taxes
8,115
1,024
Net loss
$
(24,202
)
$
(2,218
)
Other comprehensive income (loss)
Foreign currency translation adjustments
(7,359
)
9
Unrealized loss on available-for-sale debt securities
(4
)
(865
)
Total other comprehensive loss
(7,363
)
(856
)
Comprehensive loss
$
(31,565
)
$
(3,074
)
Net loss per share
Basic
$
(0.42
)
$
(0.04
)
Diluted
$
(0.42
)
$
(0.04
)
Weighted average common shares used to compute net loss per share
Basic
57,938,115
54,756,024
Diluted
57,938,115
54,756,024
INARI MEDICAL, INC. Condensed Consolidated Balance Sheets (in thousands, except share data and par value) (unaudited)
March 31, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
66,707
$
38,597
Restricted cash
500
611
Short-term investments in debt securities
34,595
76,855
Accounts receivable, net
78,621
70,119
Inventories, net
44,650
42,900
Prepaid expenses and other current assets
8,240
6,481
Total current assets
233,313
235,563
Property and equipment, net
20,761
20,929
Operating lease right-of-use assets
47,610
48,407
Goodwill
209,642
214,335
Intangible assets
145,774
150,884
Deposits and other assets
4,676
4,117
Total assets
$
661,776
$
674,235
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
12,026
$
10,577
Payroll-related accruals
38,748
48,706
Accrued expenses and other current liabilities
33,544
15,364
Operating lease liabilities, current portion
1,719
1,692
Total current liabilities
86,037
76,339
Operating lease liabilities, noncurrent portion
29,773
30,355
Deferred tax liability
35,395
36,231
Other long-term liability
63,341
66,400
Total liabilities
$
214,546
$
209,325
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023
—
—
Common stock, $0.001 par value, 300,000,000 shares authorized as of March 31, 2024, and December 31, 2023; 58,001,145 and 57,762,414 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
58
58
Additional paid in capital
518,338
504,453
Accumulated other comprehensive income
1,522
8,885
Accumulated deficit
(72,688
)
(48,486
)
Total stockholders' equity
447,230
464,910
Total liabilities and stockholders' equity
$
661,776
$
674,235
INARI MEDICAL, INC. Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss (in thousands) (Unaudited)
Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss:
Three Months Ended March 31,
2024
2023
GAAP Operating loss
$
(17,177
)
$
(5,338
)
Non-GAAP Adjustments:
Change in fair value of contingent consideration
6,303
—
Amortization of acquired intangible asset
2,461
—
Acquisition-related expenses (a)
2,779
—
Non-GAAP Operating loss
$
(5,634
)
$
(5,338
)
________________ (a) The acquisition-related expenses primarily include integration and retention related expenses.
Revenue Disaggregation
The following table presents the amount of revenue in VTE and Emerging Therapies recognized for the periods presented (in thousands, unaudited):
Inari Medical, Inc. is a medical device company. The Companyâs products primarily consist of ClotTriever and FlowTriever systems, which are catheter-based mechanical thrombectomy systems that are used for the treatment of the venous thromboembolism (VTE) deep vein thrombosis (DVT), and pulmonary embolism (PE). Its InThrill system is used for the removal of emboli and thrombi from the peripheral vasculature. The LimFlow system is indicated for patients who have chronic limb-threatening ischemia with no suitable endovascular or surgical revascularization options and are at risk of major amputation. It also offers RevCore thrombectomy catheter, which is a thrombectomy device for venous stent thrombosis, Triever 16 Curve catheter, which is used for venous thrombus removal, and ClotTriever Bold catheter, which is used for DVT and the removal of acute and chronic clots in the peripheral vasculature. Its ClotTriever XL, which is a catheter for efficient clot removal with minimal blood loss.
INARI MEDICAL, INC. 
