Harrow (HROW) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $49.3 million, up 44–46% year-over-year, driven by strong launches and growth in VEVYE, IHEEZO, and TRIESENCE, despite seasonal and inventory headwinds.

• Net loss for Q3 2024 was $4.2 million, with a nine-month net loss of $24.3 million; adjusted EBITDA for Q3 was $8.8 million.

• Product launches and re-launches, including VEVYE (January 2024) and TRIESENCE (October 2024), expanded the branded portfolio and market reach.

• MELT-300 Phase 3 data is expected in Q4 2024, with a potential launch in 1H 2026.

• A cybersecurity incident in November 2024 resulted in fraudulent fund diversion, but the financial impact is expected to be immaterial.

Financial highlights

• Q3 2024 revenue was $49.3M, up from $34.3M in Q3 2023; nine-month revenue reached $132.8M, up from $93.8M year-over-year.

• Gross margin for Q3 2024 was 75.6–76% (core margin 80%), with gross profit of $37.2M.

• Adjusted EBITDA for Q3 2024 was $8.8M; YTD 2024 Adjusted EBITDA was $13.0–17.8M.

• VEVYE prescription volume rose 55% sequentially, IHEEZO unit demand increased 15% sequentially, and TRIESENCE re-launched in October.

• Cash and cash equivalents were $72.6M at September 30, 2024.

Outlook and guidance

• Q4 and full-year 2024 are expected to be record periods, with strong October performance and inventory issues resolved.

• 2024 revenue guidance is over $180M, with management expecting Q4 to exceed guidance due to robust demand.

• VEVYE is projected to more than double revenue in 2025, and ImprimisRx anticipates over 10% revenue growth.

• Core gross margins are expected to remain in the 80% range throughout 2024.

• Management believes current cash is sufficient for at least the next 12 months.