Inari Medical (NARI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $145.8 million, up 23% year-over-year, driven by expanded sales territories, new accounts, and strong adoption across VTE, emerging therapies, and international markets.

• Gross margin remained strong at 86.3%, though down from 88.4% year-over-year, reflecting product mix, ramp-up costs, and international expansion.

• Net loss for Q2 2024 was $31.3 million, compared to net income of $2.1 million in Q2 2023, primarily due to higher operating expenses and increased income tax provision.

• Announced CFO transition: Mitch Hill retiring, Kevin Strange appointed as successor effective October 1, 2024.

• Full commercial launch of VenaCore for DVT treatment and continued integration of LimFlow, with positive reimbursement updates and anticipated PEERLESS data release in H2 2024.

Financial highlights

• Q2 2024 revenue: $145.8 million, up 23% year-over-year; gross profit: $125.8 million; gross margin: 86.3%.

• Operating expenses: $148.3 million, up from $106.7 million year-over-year, driven by higher SG&A, R&D, and acquisition-related costs.

• GAAP operating loss: $22.4 million; non-GAAP operating loss: $13.2 million after adjustments.

• Net loss: $31.3 million; EPS: -$0.54 (vs. $0.04 prior year); weighted average shares outstanding: 58.1 million.

• Cash, cash equivalents, and short-term investments totaled $110 million at quarter end; no debt.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $594.5–$604.5 million, reflecting 20.5%–22.5% growth over 2023.

• Sustained operating profitability targeted for the first half of 2025.

• Cash balance expected to remain above $100 million through year-end, with strong cash flow generation supporting growth and LimFlow integration.

• Q3 sequential growth expected to be about half of last year’s Q3; stronger year-over-year growth anticipated in Q4.