On July 30, 2024, Inari Medical Inc (NARI, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Inari Medical Inc is a medical device company focused on developing products to treat patients suffering from Chronic Venous Disease. Its product portfolio includes ClotTriever, FlowTriever System, InThrill system, LimFlow system, and others. The company generates the majority of its revenue from the United States, with the rest coming from international markets.
Performance Overview
Inari Medical Inc (NARI, Financial) reported revenue of $145.8 million for Q2 2024, surpassing the analyst estimate of $143.75 million and marking a 22.5% increase compared to $119.0 million in Q2 2023. This growth was driven by the expansion of sales territories, opening of new accounts, increased adoption of procedures, and global commercial expansion.
However, the company faced significant challenges with rising expenses. Operating expenses for Q2 2024 were $148.3 million, up from $106.7 million in Q2 2023. This increase was primarily due to personnel-related expenses, including commissions and share-based compensation, professional fees, and acquisition-related expenses.
Financial Achievements and Challenges
Despite the revenue growth, Inari Medical Inc (NARI, Financial) reported a GAAP operating loss of $22.4 million for Q2 2024, compared to a $1.5 million GAAP operating loss in Q2 2023. The non-GAAP operating loss was $13.2 million, excluding items such as the change in fair value of contingent consideration, amortization of acquired intangible assets, and acquisition-related expenses.
“Our second quarter performance was driven by strong adoption of our market-leading solutions across our VTE, Emerging Therapies, and international businesses,” said Drew Hykes, CEO of Inari Medical.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $145.8 million | $119.0 million |
| Gross Profit | $125.8 million | $105.2 million |
| Operating Expenses | $148.3 million | $106.7 million |
| GAAP Operating Loss | $22.4 million | $1.5 million |
| Net Loss | $31.3 million | $2.1 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Inari Medical Inc (NARI, Financial) reported cash, cash equivalents, and short-term investments totaling $110 million. The company’s total assets stood at $672.9 million, with total liabilities of $249.1 million. The increase in liabilities was attributed to higher accounts payable, payroll-related accruals, and other long-term liabilities.
Revenue Guidance and Outlook
Inari Medical Inc (NARI, Financial) raised its full-year 2024 revenue guidance to a range of $594.5 million to $604.5 million, reflecting growth of approximately 20.5% to 22.5% over 2023. The company continues to expect to reach sustained operating profitability in the first half of 2025.
In summary, while Inari Medical Inc (NARI, Financial) demonstrated strong revenue growth and market adoption of its products, the company faces challenges with rising operating expenses and net losses. Investors will be keenly watching how the company manages these expenses and achieves its profitability targets in the coming quarters.
Explore the complete 8-K earnings release (here) from Inari Medical Inc for further details.
