OrthoPediatrics (KIDS) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $54.6 million, up 37% year-over-year, driven by acquisitions, strong core product performance, and domestic revenue growth of 45%.

• Helped over 33,000 children in Q3 2024, a 50% year-over-year increase, setting a new record for patient impact.

• Net loss widened to $7.9 million for Q3 2024 from $4.6 million in Q3 2023, reflecting higher operating expenses and acquisition-related costs.

• Gross margin declined to 73% in Q3 2024 from 77% in Q3 2023, mainly due to product mix and lower-margin sales.

• Raised full-year 2024 revenue guidance to $202–$204 million, reflecting 36%–37% growth.

Financial highlights

• Q3 2024 worldwide revenue: $54.6 million, up 37% year-over-year; U.S. revenue: $42.7 million (+45%); international revenue: $11.9 million (+12%).

• Trauma & Deformity revenue: $37.6 million (+31%); Scoliosis revenue: $15.6 million (+52%); Sports Medicine/Other: $1.3 million (+50%).

• Gross profit margin: 73% (down from 77% in Q3 2023).

• Adjusted EBITDA: $4.0 million in Q3 2024, up from $3.6 million in Q3 2023.

• Ended Q3 with $78.1 million in cash, short-term investments, and restricted cash.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $202–$204 million (36%–37% growth).

• Full-year gross margin expected at 74%–75%.

• Adjusted EBITDA for 2024 expected between $8–$9 million.

• Less than $20 million in new set deployments expected for 2024.

• Management expects continued near-term losses as investments in product portfolio and market expansion persist.