Q1 2024 Paragon 28 Inc Earnings Call Transcript
Key Points
- Record global revenue of $61.1 million in Q1 2024, showing a 17.4% growth in both reported and constant currency terms.
- U.S. business performance saw a 13.5% reported growth with an increase in the U.S. producing sales rep roster by 6% and a 12% growth in surgeon customer base.
- International net revenue grew by 42.2% and 42.5% in reported and constant currency terms respectively, driven by strong performances in the United Kingdom and Australia.
- Launched six new products in Q1 2024, focusing on high-growth foot and ankle segments, which are expected to drive sustainable long-term growth.
- Strong financial position with $108 million in total liquidity at the end of Q1 2024, providing a solid foundation for future investments and growth.
- Decrease in gross profit margin from 82.9% in Q1 2023 to 80% in Q1 2024, primarily due to higher supplier costs and product/geographic mix shifts.
- Increased operating expenses led to a $5.5 million loss in adjusted EBITDA for Q1 2024 compared to a $1.4 million loss in the same period the previous year.
- Negative operating cash flow of $11 million in Q1 2024, attributed to higher operating costs and changes in working capital items.
- SG&A expenses increased by 23.7% to $54.2 million, driven by higher headcount, merit increases, and other variable costs associated with revenue growth.
- The impact of investments made in Q1 has slightly delayed the expectation for achieving EBITDA breakeven within 2024.
Good afternoon, and welcome to Paragon 28 first quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
I would now like to hand the conference over to your host today, Mr. Matthew Brinckman, SVP Strategy, Investor Relations. Mr. Brinckman, please go ahead.
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Good afternoon, and thank you for joining Paragon 28 first quarter 2024 financial results and earnings call.
Presenting on today's call are Albert DaCosta, Chairman and Chief Executive Officer; and Krissy Wright, Interim Chief Financial Officer.
Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking
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