Key Points
- Revenue increased by 22.5% year over year to $145.8 million.
- The healthcare company reported a significant net loss of $31.3 million, in contrast to its net profit of $2.1 million in the prior-year period.
- Management raised its full-year revenue guidance slightly.
Inari Medical (NARI -1.70%), which specializes in minimally invasive solutions to treat venous and vascular diseases, announced its second-quarter financial results on July 30. It achieved significant revenue growth, but also a experienced a marked rise in operating expenses and took a substantial net loss. For the quarter, Inari Medical posted revenue of $145.8 million, up 22.5% from $119.0 million in Q2 2023. Despite the top-line growth, the company reported a net loss of $31.3 million compared to net income of $2.1 million in the prior-year period. The quarter's outcomes were in line with management's prior guidance.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total revenue | $145.8 million | $119.0 million | 22.5% |
| Venous thromboembolism revenue | $137.7 million | $114.1 million | 20.7% |
| Emerging therapies revenue | $8.1 million | $4.9 million | 65.6% |
| Gross profit | $125.8 million | $105.2 million | 19.6% |
| Gross margin | 86.3% | 88.4% | (2.1 percentage points) |
| Operating expenses | $148.3 million | $106.7 million | 39.0% |
| GAAP operating profit | ($22.4 million) | ($1.5 million) | NA |
| Non-GAAP operating profit | ($13.2 million) | ($1.5 million) | NA |
| Net income | ($31.3 million) | $2.1 million | NA |
| Source: Guidance figures from Q1 report published on April 30. |
Overview of Inari Medical
The medical device maker provides innovative, minimally invasive solutions for the treatment of venous and other vascular diseases. It focuses on developing products that cater to unmet and underserved medical conditions. Its recent efforts have included expanding its venous thromboembolism product lines and developing emerging therapies.
Quarterly Highlights and Performance
During Q2, Inari Medical's revenues from its venous thromboembolism segment rose 20.7% year over year to $137.7 million, while emerging therapies contributed $8.1 million, a significant 65.6% increase. These figures underline strong market adoption of its solutions.
The company's gross profit also grew to $125.8 million compared to $105.2 million a year earlier. However, its gross margin dipped to 86.3% from 88.4%, a decline it attributed to product mix changes, new product ramp-up expenses, and international expansion costs.
Operating expenses rose considerably, driven by higher personnel-related costs as it grew its headcount, professional fees, and acquisition-related expenses. Specifically, research and development expenses rose 18.1% to $24.9 million, and selling, general, and administrative expenses surged 33.5% to $114.2 million.
The company reported a GAAP operating loss of $22.4 million, widening from a $1.5 million loss in Q2 2023. Its net loss was $31.3 million, a sharp contrast to its net income of $2.1 million in the prior-year period.
On the brighter side, Inari Medical successfully launched VenaCore, a new device aimed at treating deep vein thrombosis. Additionally, progress in the emerging therapies segment and favorable reimbursement updates for the LimFlow system contributed positively to its results in the quarter.
Its healthy cash position of $110 million reflects a solid financial foundation despite ongoing challenges.
Looking Ahead
Inari Medical has updated its full-year revenue guidance to a range of $594.5 million to $604.5 million, up from the prior range of $592.5 million to $602.5 million. Management also reaffirmed its goal of achieving sustained operating profitability by the first half of 2025.
