On August 1, 2024, Vericel Corp (VCEL, Financial) released its 8-K filing for the second quarter of 2024. Vericel Corp is a fully integrated, commercial-stage biopharmaceutical company specializing in therapies for sports medicine and severe burn care markets. The company markets two cell therapy products in the United States: MACI (autologous cultured chondrocytes on porcine collagen membrane) and Epicel (cultured epidermal autografts).
Performance Overview
Vericel Corp (VCEL, Financial) reported total net revenue of $52.7 million for Q2 2024, surpassing the analyst estimate of $52.59 million. However, the company posted a net loss of $4.7 million, or $0.10 per diluted share, missing the estimated earnings per share (EPS) of -$0.09.
Financial Achievements and Challenges
The company achieved a gross margin of 70%, up 430 basis points from the previous year, and a 42% increase in non-GAAP adjusted EBITDA to $6.3 million. These metrics are crucial for a biopharmaceutical company like Vericel Corp (VCEL, Financial) as they indicate improved operational efficiency and profitability.
Despite these achievements, Vericel Corp (VCEL, Financial) faces challenges, including a net loss of $4.7 million for the quarter. The increase in operating expenses, primarily due to development and pre-launch activities for MACI Arthro, increased headcount, and lease expenses, contributed to this loss.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $52.7 million | $45.9 million |
| Gross Profit | $36.6 million | $29.9 million |
| Net Loss | -$4.7 million | -$5.0 million |
| Adjusted EBITDA | $6.3 million | $4.4 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Vericel Corp (VCEL, Financial) had approximately $154 million in cash, restricted cash, and investments, with no debt. The company reported an operating cash flow of approximately $18.5 million for the quarter.
Business Highlights
Vericel Corp (VCEL, Financial) reported record second-quarter revenue and MACI revenue. The company also noted significant progress in the commercial plans for MACI Arthro and the launch of NexoBrid. The FDA approval of the pediatric indication for NexoBrid is expected in the third quarter of 2024.
"The Company had another strong quarter as we generated record second quarter revenue, highlighted by continued high growth for MACI and solid progression in NexoBrid demand, and delivered another quarter of significant margin expansion as our growth in profitability continues to outpace our high revenue growth," said Nick Colangelo, President and CEO of Vericel.
2024 Financial Guidance
Vericel Corp (VCEL, Financial) reaffirmed its total net revenue guidance of $238 to $242 million, representing 20% to 23% growth. The company also raised its profitability guidance to a 71% gross margin and a 21% adjusted EBITDA margin, compared to the previous guidance of 70% and 20%, respectively.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Vericel Corp for further details.
