Inari Medical (NARI -1.70%), a medical devices company specializing in innovative venous disease treatments, reported robust revenue growth in its third-quarter 2024 earnings release on Monday, Oct. 28. Revenue of $153.4 million surpassed expectations of $150.7 million and was up 21.4% year over year. Despite this growth, the company reported a non-GAAP operating loss of $0.4 million.
This quarter highlighted Inari Medical’s expansion efforts and focus on product development, tempered by increased operating expenses. Overall, the quarter showed strong growth potential, with significant investments aimed at long-term profitability.
| Metric | Q3 2024 | Analyst Expectation | Q3 2023 | Change (YOY) |
|---|---|---|---|---|
| Revenue | $153.4 million | $150.7 million | $126.4 million | 21.4% |
| Non-GAAP operating income (loss) | ($0.4 million) | N/A | $4.8 million | N/A |
| GAAP operating income (loss) | ($13.6 million) | N/A | $2.1 million | N/A |
| Operating expenses | $147.1 million | N/A | $109.8 million | 34% |
Source: Inari Medical. Note Analyst consensus estimate for the quarter provided by FactSet. YOY = Year over year. GAAP = Generally accepted accounting principles.
Company Overview
Inari Medical is a prominent player in the medical device sector, specializing in systems to treat venous thromboembolism (VTE) and other vascular conditions. Inari’s core products, FlowTriever and ClotTriever, are designed to treat blood clots without the need for thrombolytic drugs, differing from competitor offerings. This innovation provides a competitive advantage by minimizing risks associated with clot-dissolving medications.
Recently, Inari has been focusing on expanding its international presence and introducing new treatments to bolster its product line. This expansion aims to capture significant market opportunities within the vascular disease space, leveraging clinical performance to position its solutions as a standard of care. Key success factors include the ability to navigate complex regulatory environments and capitalize on its strong pipeline of product innovations.
Quarter Highlights: Revenue and Strategic Moves
Inari's 21% revenue jump in the third quarter was driven by increased procedure adoption and the introduction of new products. International revenue of $11.5 million was up 76% year over year.
The rise in operating expenses, totaling $147.1 million compared to $109.8 million last year, constrained profitability. This increase was attributed to personnel expenses, impairment costs, and heightened professional fees, contributing to a GAAP operating loss of $13.6 million, as opposed to a $2.1 million operating income in Q3 2023. As a result, the non-GAAP operating loss this quarter was $0.4 million, compared to $4.8 million income in the prior year period.
Inari made strategic advancements with its global presence, underscored by plans to enter Japanese and Chinese markets. The recent FDA clearance for its Artix device marked a pivotal step in product innovation. With products like ClotTriever and FlowTriever leading its thrombectomy suite, the company continues to emphasize development for extensive market reach.
Inari's recent acquisition of LimFlow, which addresses chronic limb-threatening ischemia, is expected to enhance Inari's competitive advantage in vascular treatments. On the financial front, cash and equivalents remain healthy at $112 million, vital for funding future strategic and operational needs.
Outlook and Forward Guidance
Looking forward, Inari Medical raised its full-year 2024 revenue guidance to a range of $601.5 million to $604.5 million, reflecting management's optimism despite current financial challenges. This signals a sustained focus on growth, driven by strategic expansions and innovative product pipelines. The company remains on track to achieve profitability by the first half of 2025, staying committed to investing in key market expansion areas.
Investors should monitor the upcoming launches and regulatory approvals within new international territories, as these will be crucial for growth. The company’s emphasis on market expansion and pipeline enhancement remains vital for its long-term success. Additionally, the expected release of PEERLESS study data and other product-specific developments will likely influence future performance and industry standing.
