Treace Medical Concepts (TMCI) UBS Global Healthcare Conference 2024 summary

Financial performance and guidance

• Achieved 21% growth in Q1 2024, 6% in Q2, and 11% in Q3, with Q3 growth attributed to easier year-over-year comparisons.

• Q4 2024 is guided to 7–8% growth, with expectations for Q1 2025 to be single-digit due to tough comps.

• Anticipates higher growth in Q2 2025 as new products gain traction and adoption increases.

• Street models high single-digit to low double-digit growth for 2025, with internal expectations of 8–10%.

• Committed to achieving EBITDA break-even in 2025, following a two-step process to halve losses each year.

Product launches and portfolio expansion

• Several new products, including Nanoplasty and SpeedPlate, are launching, with benefits expected to materialize in Q1 and Q2 2025.

• Nanoplasty targets the minimally invasive osteotomy segment, expanding the addressable market and attracting new surgeon users.

• Product pipeline includes additional launches in the first half of 2025, aiming to address more foot and ankle procedures.

• RedPoint IntelliGuide technology, a patient-specific cutting guide, is ramping toward national supply by mid-2025.

• The company is building a comprehensive bunion portfolio and plans to broaden its footprint in the foot and ankle market.

Market dynamics and competitive environment

• Market softness in 2024 attributed to increased competition, patient preference for minimally invasive procedures, and external factors like hurricanes and IV shortages.

• Competitive headwinds and patient behavior changes were anticipated and factored into guidance.

• The company maintains a strong competitive moat through clinical data, patents, product innovation, and specialized training programs.

• New technologies are expected to reverse recent churn and attract both new and returning surgeons.

• Surgeon penetration is about 30% of the estimated 10,000 U.S. bunion surgeons, with ongoing efforts to expand.