The following is a summary of the OrthoPediatrics Corp. (KIDS) Q3 2024 Earnings Call Transcript:
Financial Performance:
OrthoPediatrics reported a Q3 2024 revenue of $54.6 million, a 37% increase year-over-year.
Gross profit margin for Q3 was 73%, a decrease from 77% in Q3 2023, attributed to product mix shifts and lower margin sales, notably the 7D units.
Adjusted EBITDA for Q3 2024 was $4.0 million, up from $3.6 million in Q3 2023.Raised full year 2024 revenue guidance to $202 million to $204 million, indicating a 36% to 37% year-over-year growth.
Business Progress:
OrthoPediatrics helped over 33,000 children in Q3, up 50% from last year. They have aided over 1 million children since inception.
International performance was strong with revenue of $11.9 million, growing 12% year-over-year primarily due to trauma, deformity, and scoliosis products.
Launched multiple sets of PNP Tibia and prepared to launch the P3 hip system in the first half of next year.
Expanded OPSB with the acquisition of a small clinic in Florida and other greenfield expansions.
Opportunities:
OrthoPediatrics saw expansions in trauma, deformity (T&D), scoliosis, and bracing businesses.
Expect continued growth and expansion into international markets, notably with EU MDR approvals anticipated in mid-2025.
Continuing to drive growth through aggressive market share gains, particularly in pediatric orthopedic products and the onboarding of new technologies like the 7D units and EOS products.
Risks:
Exposure to market fluctuations due to viruses like flu and COVID which affect surgical scheduling.
Variability in international markets potentially influenced by external factors such as local regulatory environments and distributor activities.
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