Vericel (VCEL) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $52.7M, up 15% year-over-year, driven by 21% MACI growth and strong NexoBrid performance.

• Net loss for Q2 2024 was $4.7M ($0.10/share), improved from $5.0M ($0.11/share) last year.

• Gross margin reached a record 70% in Q2, with adjusted EBITDA up 42% year-over-year to $6.3M (12% margin).

• Ended Q2 with $154M in cash, restricted cash, and investments, and no debt.

• First half 2024 revenue grew 20% year-over-year, with both MACI and burn care franchises contributing.

Financial highlights

• Q2 net revenue: $52.7M; MACI: $44.1M (up 21% YoY); burn care: $8.5M (Epicel: $7.8M, NexoBrid: $0.8M, up 76% sequentially).

• Q2 gross profit: $36.6M (70% margin, up 430 bps YoY); operating expenses: $42.6M, mainly due to MACI Arthro development and new facility costs.

• Adjusted EBITDA Q2: $6.3M (12% margin), up from $4.4M (10%) in Q2 2023; first half adjusted EBITDA more than doubled to $13.5M.

• Operating cash flow in Q2: $18.5M; first half: $26M.

• Research and development expenses increased 40.2% to $7.4M in Q2 2024, mainly due to higher headcount and MACI Arthro development.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $238M–$242M (20–23% growth).

• Gross margin guidance raised to 71%, adjusted EBITDA margin to 21% for the year.

• Anticipates FDA approval for NexoBrid pediatric indication and MACI Arthro label expansion in Q3 2024.

• MACI Ankle clinical study initiation planned for 2025, targeting a $1B market.

• Management expects current cash, investments, and available borrowing capacity to support operations for at least 12 months.