Paragon 28 (FNA) Q1 2024 earnings summary

Executive summary

• Q1 2024 revenue reached a record $61.1M, up 17.4% reported and constant currency YoY; growth spanned all five foot-and-ankle subsegments.

• FY 2024 revenue guidance was reaffirmed at $249M–$259M, implying 15.1%–19.7% YoY growth.

Financial highlights

• Gross profit rose 13% to $48.9M; gross margin fell to 80.0% from 82.9% YoY.

• Operating expenses increased 21.5% to $61.8M; operating loss widened to $12.9M from $7.7M.

• Net loss was $15.2M versus $9.1M; adjusted EBITDA loss was $5.5M versus $1.4M, including a $0.5M non-cash fair-value adjustment.

• One fewer billing day created an estimated 200 bps revenue headwind.

Outlook and guidance

• FY 2024 revenue guidance assumes normalized seasonality, a stabilized supply chain and current foreign-currency translation rates.

• U.S. growth drivers include new products, sales-force expansion and productivity, customer expansion and penetration; international outlook cites U.K. and Australia growth and momentum in other markets.

• Existing cash, available borrowing capacity and expected revenues were expected to fund capital requirements and operations for at least 12 months.