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Allurion Technologies sees mixed Q1 results with revenue up By Investing.com

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Allurion Technologies Incorporated (NYSE: ALRN) has announced its financial results for the first quarter of 2024, revealing a mix of growth and challenges. The company reported a revenue of $9.4 million, which marks a 14% sequential increase from the previous quarter but a 33% decrease from the first quarter of 2023.

Procedural volumes have shown a significant increase, with new app users growing by 22% since the last quarter and 12% year-over-year. Despite the lower year-over-year revenue, Allurion has successfully reduced its operating expenses and cash burn, while securing a substantial convertible note financing to extend its financial runway.

Key Takeaways

  • Allurion’s revenue for Q1 2024 was $9.4 million, up 14% from the previous quarter but down 33% from Q1 2023.
  • Procedural volumes reached record highs, growing 22% quarter-over-quarter and 12% year-over-year.
  • Gross margins improved significantly to 73% compared to 39% in Q1 2023.
  • Operating expenses were cut by 43%, leading to a 62% reduction in cash burn.
  • The company closed a $48 million convertible senior secured note financing.
  • Allurion launched its virtual care suite in the US and established full reimbursement partnerships with the NHS in the UK.

Company Outlook

  • Procedural volume and revenue growth expected to align more closely in H2 2024.
  • Several upcoming catalysts, including the AUDACITY FDA trial completion and virtual care suite launch in the US.
  • Plans for expansion into new geographies such as India, Brazil, Canada, Mexico, and Australia, with a focus on the US market.

Bearish Highlights

  • Year-over-year decrease in revenue due to lower reorder rates and sales management to control credit risk.
  • Cash and cash equivalents dropped to $29.7 million, a decrease of $8.4 million from the end of the previous year.
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Bullish Highlights

  • Operating expense reductions and cash burn decrease point to improved operational efficiency.
  • Strong gross margin improvement demonstrates cost control and pricing power.
  • The company’s technology received approval in the US, which is expected to boost provider awareness and adoption.

Misses

  • The company reported a loss in operations for Q1 at $11.4 million, although this is an improvement from the previous year.

Q&A Highlights

  • CEO Shantanu Gaur emphasized the importance of the US market following the technology’s approval.
  • Inventory de-stocking, affecting distributor markets, is anticipated to…

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