Treace Medical Clocks 40% Jump In Q4 Sales On Higher Volume, FY22 Guidance Better Than Expected

Treace Medical Concepts Inc TMCI Q4 FY21 sales increased 39% to $33.4 million, beating the consensus of $32.27 million, driven by an increased number of Lapiplasty procedure kits sold and an expanded customer base.
A gross margin of 81.1% increased 220 basis points from the same period last year, on volume increases without a corresponding rise in certain fixed costs and a higher blended average selling price.
Fourth-quarter revenue contribution from bunion-focused direct sales channel was 58% of sales, an increase from an average of 39% in Q4 of FY20.
New interim data from the ALIGN3D study demonstrated continued positive radiographic and patient-reported outcomes at 12- and 24- months following the Lapiplasty procedure.
A low recurrence rate was also maintained, with 0.9% and 0.0% observed at 12- and 24- months post-surgery, respectively.
The Company reported a Q4 EPS loss of $(0.12), a shift from the income of $0.05 a year ago.
Treace Medical held cash & cash equivalents of $105.8 million at the end of 2021.
Guidance: Treace expects FY22 sales of $125 million - $130 million, +32% - 38% Y/Y, versus the consensus of $124.25 million.
Price Action: TMCI shares closed 1.31% lower at $20.41 on Thursday.

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