Allurion Reports Second Quarter 2024 Financial Results and Provides Business Update
Results highlighted by strong sequential revenue growth and record procedure volume
Recent Company Highlights
-
Second quarter revenue of
$11.8 million , a sequential increase of$2.4 million or 25% from the first quarter of 2024 - Second quarter loss from operations reduced by 30% compared to the year-ago period and by 44% when one-time financing costs are excluded
- Procedure volume, as estimated through new app users, grew by 12% year-over-year, a quarterly record that equated to over 10,000 Allurion balloon placements for the second consecutive quarter
-
Updating full-year 2024 revenue guidance to between
$40 million and$45 million - Announced the publication of a third-party study demonstrating active patients gained an average of 5.6% lean mass while still averaging 14% weight loss on the Allurion Program
- Expanded capabilities of Coach Iris—the Company’s proprietary, AI-powered weight loss coach—to support patients on GLP-1 drug therapy
- Successfully treated last patient in the AUDACITY trial with second balloon, putting trial completion on track for end of this year
-
Completed a public offering and concurrent private placement of securities on
July 1, 2024 which generated approximately$22.0 million in gross proceeds
“After restructuring our business at the end of 2023, the entire Allurion team executed at a high level and posted a second consecutive quarter of sequential revenue growth, record procedure volume, and significant improvements in operating income,” said Dr.
“While our business is operating much more efficiently, we continue to innovate. We launched GLP-1 drug support for
The Company previously announced on
“The safety of the Allurion Balloon has been well-established in 20 peer-reviewed publications and over 150,000 patients we estimate that we have treated commercially,”
The Company is updating its full-year 2024 revenue guidance to between
“We have adjusted our guidance to take into account the disruption of sales in
Second Quarter Financial Results
Total revenue for the quarter ended
Gross profit for the second quarter was 76%, compared to 77% for the same period in 2023.
Sales and marketing expenses for the second quarter decreased approximately
Research and development expenses decreased by
General and administrative expenses of
Loss from operations for the second quarter decreased by
Cash balance on
Conference Call and Webcast Details
Company management will host a conference call to discuss financial results and provide a business update on
To access the conference call by telephone, please dial +1 (888) 330-3417 (domestic) or +1 (646) 960-0804 (international) and use Conference ID 1905455. To listen to the conference call via live audio webcast, please visit the Events section of Allurion’s Investor Relations website at Allurion - Events & Presentations. The archived webcast will also be available on Allurion’s Investor Relations website mentioned above shortly after the completion of the call.
About Allurion
Allurion is dedicated to ending obesity. The Allurion Program is a weight loss platform that features the Allurion Gastric Balloon, the world’s first and only swallowable, procedure-less(TM) intragastric balloon for weight loss, and offers access to the Allurion Virtual Care Suite, including the Allurion Mobile App for consumers, Allurion Insights for health care providers featuring the Coach Iris AI Platform, and the Allurion Connected Scale. The Allurion Virtual Care Suite is also available to providers separately from the Allurion Program to help customize, monitor and manage weight loss therapy for patients regardless of their treatment plan: gastric balloon, surgical, medical or nutritional. The Allurion Gastric Balloon is an investigational device in
For more information about Allurion and the Allurion Virtual Care Suite, please visit www.allurion.com.
Allurion is a trademark of
Forward-Looking Statements
This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although Allurion believes that it has a reasonable basis for each forward-looking statement contained in this press release, Allurion cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements regarding: the financial outlook for 2024, including driving procedural volume growth, revenue growth, durable pricing, and the impact of cost reduction initiatives on cash burn and operational flexibility; cash runway and the expected sufficiency and duration of cash balance to meet milestones and achieve profitability; the performance and market acceptance of products, including Virtual Care Suite and the Coach Iris feature, for patients using different weight loss therapies both outside and within
Allurion cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward looking statements are subject to a number of risks and uncertainties, including, among others, general economic, political and business conditions; the ability of Allurion to obtain and maintain regulatory approval for, and successfully commercialize, the Allurion Program; the timing of, and results from, its clinical studies and trials; the evolution of the markets in which Allurion competes; and the impact of GLP-1 drugs; the ability of Allurion to maintain its listing on the
Unaudited Condensed Consolidated Statements of Operations (dollars in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
|
$ |
11,766 |
|
|
$ |
12,960 |
|
|
$ |
21,152 |
|
|
$ |
27,031 |
|
Cost of revenue |
|
|
2,773 |
|
|
|
2,992 |
|
|
|
5,293 |
|
|
|
5,932 |
|
Gross profit |
|
|
8,993 |
|
|
|
9,968 |
|
|
|
15,859 |
|
|
|
21,099 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
6,718 |
|
|
|
10,273 |
|
|
|
12,863 |
|
|
|
22,137 |
|
Research and development |
|
|
4,310 |
|
|
|
6,581 |
|
|
|
10,035 |
|
|
|
14,433 |
|
General and administrative |
|
|
7,311 |
|
|
|
6,408 |
|
|
|
13,697 |
|
|
|
11,714 |
|
Total operating expenses: |
|
|
18,339 |
|
|
|
23,262 |
|
|
|
36,595 |
|
|
|
48,284 |
|
Loss from operations |
|
|
(9,346 |
) |
|
|
(13,294 |
) |
|
|
(20,736 |
) |
|
|
(27,185 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(339 |
) |
|
|
(2,508 |
) |
|
|
(2,270 |
) |
|
|
(4,745 |
) |
Changes in fair value of warrants |
|
|
1,376 |
|
|
|
(204 |
) |
|
|
4,507 |
|
|
|
(1,679 |
) |
Changes in fair value of debt |
|
|
8,230 |
|
|
|
2,257 |
|
|
|
8,230 |
|
|
|
2,257 |
|
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option |
|
|
6 |
|
|
|
— |
|
|
|
1,496 |
|
|
|
— |
|
Changes in fair value of earn-out liabilities |
|
|
5,690 |
|
|
|
— |
|
|
|
19,880 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
|
(8,713 |
) |
|
|
— |
|
|
|
(8,713 |
) |
|
|
— |
|
Termination of convertible note side letters |
|
|
— |
|
|
|
(8,134 |
) |
|
|
— |
|
|
|
(8,134 |
) |
Other income (expense), net |
|
|
999 |
|
|
|
(91 |
) |
|
|
1,171 |
|
|
|
(255 |
) |
Total other income (expense): |
|
|
7,249 |
|
|
|
(8,680 |
) |
|
|
24,301 |
|
|
|
(12,556 |
) |
Income (loss) before income taxes |
|
|
(2,097 |
) |
|
|
(21,974 |
) |
|
|
3,565 |
|
|
|
(39,741 |
) |
Provision for income taxes |
|
|
(65 |
) |
|
|
(22 |
) |
|
|
(141 |
) |
|
|
(56 |
) |
Net Income (loss) |
|
|
(2,162 |
) |
|
|
(21,996 |
) |
|
|
3,424 |
|
|
|
(39,797 |
) |
Cumulative undeclared preferred dividends |
|
|
— |
|
|
|
(725 |
) |
|
|
— |
|
|
|
(1,442 |
) |
Net income (loss) attributable to common shareholders |
|
$ |
(2,162 |
) |
|
$ |
(22,721 |
) |
|
$ |
3,424 |
|
|
$ |
(41,239 |
) |
Net income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.05 |
) |
|
$ |
(0.84 |
) |
|
$ |
0.07 |
|
|
$ |
(1.52 |
) |
Diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.84 |
) |
|
$ |
0.07 |
|
|
$ |
(1.52 |
) |
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
47,946,609 |
|
|
|
27,107,397 |
|
|
|
47,862,980 |
|
|
|
27,097,341 |
|
Diluted |
|
|
47,946,609 |
|
|
|
27,107,397 |
|
|
|
48,982,998 |
|
|
|
27,097,341 |
|
Unaudited Condensed Consolidated Balance Sheets (dollars in thousands) |
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
19,258 |
|
|
$ |
38,037 |
|
Accounts receivable, net of allowance of doubtful accounts of |
|
|
13,357 |
|
|
|
18,194 |
|
Inventory, net |
|
|
4,788 |
|
|
|
6,171 |
|
Prepaid expenses and other current assets |
|
|
2,902 |
|
|
|
2,414 |
|
Total current assets |
|
|
40,305 |
|
|
|
64,816 |
|
Property and equipment, net |
|
|
3,254 |
|
|
|
3,381 |
|
Right-of-use asset |
|
|
2,481 |
|
|
|
3,010 |
|
Other long-term assets |
|
|
510 |
|
|
|
505 |
|
Total assets |
|
$ |
46,550 |
|
|
$ |
71,712 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
7,984 |
|
|
$ |
10,379 |
|
Current portion of term loan |
|
|
- |
|
|
|
38,643 |
|
Current portion of lease liabilities |
|
|
850 |
|
|
|
908 |
|
Accrued expenses and other current liabilities |
|
|
14,724 |
|
|
|
15,495 |
|
Total current liabilities |
|
|
23,558 |
|
|
|
65,425 |
|
Public warrant liabilities |
|
|
2,113 |
|
|
|
5,943 |
|
Revenue Interest Financing liability |
|
|
39,000 |
|
|
|
36,200 |
|
Earn-out liabilities |
|
|
4,110 |
|
|
|
23,990 |
|
Convertible notes payable, net of discounts and current portion |
|
|
40,950 |
|
|
|
— |
|
Lease liabilities, net of current portion |
|
|
1,788 |
|
|
|
2,306 |
|
Other liabilities |
|
|
5,613 |
|
|
|
8,335 |
|
Total liabilities |
|
|
117,132 |
|
|
|
142,199 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
Stockholders’ deficit: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
|
144,768 |
|
|
|
143,007 |
|
Accumulated other comprehensive loss |
|
|
(5,980 |
) |
|
|
(700 |
) |
Accumulated deficit |
|
|
(209,375 |
) |
|
|
(212,799 |
) |
Total stockholders’ deficit |
|
|
(70,582 |
) |
|
|
(70,487 |
) |
Total liabilities and stockholders’ deficit |
|
$ |
46,550 |
|
|
$ |
71,712 |
|
Source:
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813527429/en/
Investors
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
Global Media
PR Manager
+33 7 84 21 02 20
cdamour@allurion.com
Source: