OrthoPediatrics Corp (KIDS, Financial), a company focused on advancing pediatric orthopedics, announced its financial results for the third quarter ended September 30, 2023, on November 6, 2023. The company reported a record-setting quarterly revenue of $40.0 million, a 14% increase from $35.0 million in Q3 2022. The domestic revenue increased by 11% and international revenue increased by 26% in the quarter.
Financial Highlights
OrthoPediatrics Corp (KIDS, Financial) reported a net loss of $4.6 million for Q3 2023, compared to a net income of $18.5 million for the same period last year. The net loss per share for the period was $0.20 per basic and diluted share, compared to net income per share $0.88 per basic and $0.87 per diluted share for the same period last year.
The company's gross profit for Q3 2023 was $31.0 million, a 20% increase compared to $25.9 million for the same period last year. The gross profit margin for Q3 2023 was 77%, an increase compared to 74% for the same period last year.
OrthoPediatrics Corp (KIDS, Financial) reiterated its full-year 2023 revenue guidance of $148.0 million to $151.0 million, representing growth of 21% to 23% compared to the prior year. The company also raised its adjusted EBITDA guidance to $4.0 million to $5.0 million for the full year of 2023.
CEO Commentary
David Bailey, President & CEO of OrthoPediatrics, commented, “In the third quarter our commercial and operational execution drove continued revenue and profitability growth trends for the business. We expect these positive trends to continue into next year supported by the combination of our strong balance sheet and recent product portfolio expansion, ApiFix, Orthex and the specialty bracing business, that are producing higher returns on invested capital while requiring reduced set deployments to drive profitable revenue growth."
Financial Tables
The company's total revenue for Q3 2023 was $40.0 million, a 14% increase compared to $35.0 million for the same period last year. U.S. revenue for Q3 2023 was $29.4 million, an 11% increase compared to $26.5 million for the same period last year, representing 73% of total revenue. International revenue for Q3 2023 was $10.6 million, a 26% increase compared to $8.4 million for the same period last year, representing 27% of total revenue.
As of September 30, 2023, cash, cash equivalents, short-term investments, and restricted cash were $84.0 million compared to $119.8 million as of December 31, 2022. Additionally, the Company had no balance outstanding under the $50.0 million line of credit.
Company Performance Analysis
OrthoPediatrics Corp (KIDS, Financial) has shown significant growth in Q3 2023, with a 14% increase in total revenue compared to the same period last year. The company's adjusted EBITDA also reached a record $3.6 million in Q3 2023, up from $1.9 million in Q3 2022. However, the company reported a net loss of $4.6 million for Q3 2023, compared to a net income of $18.5 million for the same period last year. Despite the net loss, the company's strong revenue growth and record adjusted EBITDA indicate a positive financial performance.
Explore the complete 8-K earnings release (here) from OrthoPediatrics Corp for further details.
