Q2 2024 Transmedics Group Inc Earnings Call Transcript
Key Points
- TransMedics Group Inc (TMDX) reported significant revenue growth of 118% year-over-year and 18% sequentially, reaching $114.3 million in Q2 2024.
- The company achieved its first positive free cash flow quarter, generating approximately $2 million despite purchasing a new aircraft.
- TransMedics expanded its aviation fleet to 17 aircraft, enhancing its transplant logistics network to meet growing demand.
- The company maintained profitability with a GAAP operating profit of $12.5 million, representing 11% of total revenue.
- TransMedics increased its annual full-year revenue guidance to between $425 million to $445 million, indicating strong growth expectations.
- Gross margins slightly decreased to 61% in Q2 2024 from 62% in Q1 2024, with expectations of further fluctuations in the coming quarters.
- The company anticipates some fluctuation in free cash flow over the next 12 to 18 months due to continued heavy investment in business and product pipelines.
- Service margin declined primarily due to significant investment in pilot hiring and training, as well as aviation maintenance.
- There is potential for temporary limitations in logistics revenue growth in H2 2024 due to scheduled aircraft maintenance.
- TransMedics faces challenges in maintaining operational efficiency as it scales its air fleet and ground operations.
Good afternoon, and welcome to the TransMedics second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.
I would now like to turn the call over to Laine Morgan from the Gilmartin Group for a few introductory comments.
Thank you, operator. Earlier today, TransMedics released financial results for the quarter ended June 30, 2024. A copy of the press release is available on the company's website.
Before we begin, I would like to remind you that management will make statements during this call, including during the question-and-answer portion of the call, that include forward-looking statements within the meaning of federal securities laws. Any statements contained in this call that relate to the expectations or predictions of future events, results or performance are forward-looking statements.
All forward-looking statements, including, without limitation, our examination of operating trends, the potential commercial
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