Bausch + Lomb (BLCO) Q3 2024 earnings summary

Executive summary

• Achieved 19% constant currency revenue growth year-over-year in Q3 2024, with broad-based gains across all segments and geographies.

• Continued execution of new product launches, especially in dry eye and IOL portfolios, and expanded digital capabilities.

• Strategic investments in digital platforms, AI, and direct-to-consumer initiatives are driving growth and engagement.

• GAAP net income was $4 million, reversing a net loss of $84 million in Q3 2023, driven by improved operating results and favorable tax changes.

• Raised full-year 2024 revenue and adjusted EBITDA guidance, reflecting strong product performance and reduced FX headwinds.

Financial highlights

• Q3 2024 total revenue reached $1.196 billion, up 19% year-over-year; adjusted gross margin improved 170 bps to 63%.

• Adjusted EBITDA (excl. IPR&D) was $227 million, up 21% year-over-year; including IPR&D, $212 million.

• Adjusted EPS was $0.13, or $0.17 excluding acquired IPR&D, compared to $0.22 in Q3 2023.

• Cash flow from operations in Q3 was $154 million; adjusted cash flow from operations was $159 million.

• GAAP net income was $4 million (0.3% margin) vs. a loss of $84 million in Q3 2023; adjusted net income was $46 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $4.725–$4.825 billion, representing 16–18% constant currency growth.

• Adjusted EBITDA (excl. IPR&D) guidance increased to $850–$900 million; adjusted gross margin expected at ~62.5%.

• MIEBO full-year revenue guidance increased to $165–$170 million; Xiidra guidance maintained at $355–$365 million.

• Full-year CapEx expected at $250 million; interest expense at $385 million; adjusted tax rate at 15%.

• Anticipated full-year revenue foreign exchange headwinds reduced to $75 million.