Allurion Reports Fourth Quarter and Full Year 2023 Financial Results and Reiterates 2024 Guidance
Fourth Quarter Highlights and Outlook
- Reiterating 2024 guidance on procedural volume, revenue, gross margin, and cash burn
-
Fourth quarter revenue of
$8.2 million and full year 2023 revenue of$53.5 million , consistent with preannouncement onJanuary 8 - Procedural volume, as estimated through new app users, increased by 30% over 2022, reflecting robust demand for the Allurion Program
-
Completed enrollment in the AUDACITY pivotal trial ahead of schedule, a critical milestone for the premarket approval (PMA) application for the Allurion Balloon to the
U.S. Food and Drug Administration (FDA) - Conducted research on 172 healthcare professionals and 1,663 patients that demonstrated a positive impact of GLP-1s and other anti-obesity medications on the awareness of the Allurion Program
-
Treated the first patients with the Allurion Balloon who were fully reimbursed by the
UK NHS -
Implemented a strategic cost reduction effort expected to reduce cash burn to approximately
$30 million in 2024
"Despite our fourth quarter being impacted by macroeconomic conditions and the surge of attention paid to GLP-1 drugs, over the course of 2023, we saw strong procedural volume growth, which we believe demonstrates robust underlying consumer demand for the Allurion Program," said
“As we look ahead, we are excited by the considerable attention the weight management space has received and the significant growth in overall market opportunity we believe this presents Allurion,” continued Gaur. “Whether used in combination with a GLP-1 drug or as an alternative, we believe, and our research indicates, the Allurion Program benefits from this heightened market attention and provides a more comprehensive solution for the more than one billion people suffering from obesity globally.”
Fourth Quarter 2023 Financial Results
Total revenue for the quarter ended
Gross profit for the fourth quarter was 78% of revenue, compared to 79% of revenue in the same period in 2022.
Sales and marketing expenses for the fourth quarter decreased
Research and development expenses increased by
General and administrative expenses increased by
Loss from Operations for the fourth quarter increased by
As of
2024 Financial Outlook
For full year 2024, Allurion reiterates the financial guidance it previously published:
- Anticipated procedural volumes growth of 20%, reflecting increased penetration in key direct markets and reallocation of marketing spend to more efficient channels
-
Revenue of
$60 to$65 million , reflecting 12-22% growth year-over-year - Expected gross margins of 77-79%, reflecting durable pricing of our gastric balloon as well as initial commercialization efforts for the Allurion Virtual Care Suite SaaS product
-
Targeted cash burn of approximately
$30 million for the full year
Conference Call and Webcast Details
Allurion management will host a conference call at
A replay of the conference call will be available by telephone by dialing (800) 770 2030 (domestic) or +1 647 362 9199 (international) and using Access Code 1905455. The archived webcast will also be available on Allurion’s Investor Relations website mentioned above.
About Allurion
Allurion is dedicated to ending obesity. The Allurion Program is a weight-loss platform that combines the Allurion Gastric Balloon, the world’s first and only swallowable, procedure-less gastric balloon for weight loss, the Allurion Virtual Care Suite, including the Allurion Mobile App for consumers, Allurion Insights for healthcare providers featuring the 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, whether it is 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.
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; Allurion’s ability to complete the AUDACITY trial and support a PMA submission; the impact of investments and initiatives on distribution of the Allurion Program, advancement of its artificial intelligence platform, and improvement of patient outcomes; and the market and demand for our products and weight-loss solutions, including GLP-1 drugs and elective procedures.
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 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Twelve Months Ended (dollars in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
$ |
8,235 |
|
$ |
19,184 |
|
$ |
53,467 |
|
$ |
64,211 |
|
||||
Cost of revenue |
|
1,805 |
|
|
3,940 |
|
|
11,970 |
|
|
13,485 |
|
||||
Gross profit |
|
6,430 |
|
|
15,244 |
|
|
41,497 |
|
|
50,726 |
|
||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
|
10,730 |
|
|
14,941 |
|
|
46,857 |
|
|
50,405 |
|
||||
Research and development |
|
6,071 |
|
|
5,732 |
|
|
27,694 |
|
|
16,966 |
|
||||
General and administrative |
|
15,367 |
|
|
4,719 |
|
|
46,024 |
|
|
15,365 |
|
||||
Total operating expenses: |
|
32,168 |
|
|
25,392 |
|
|
120,575 |
|
|
82,736 |
|
||||
Loss from operations |
|
(25,738 |
) |
|
(10,148 |
) |
|
(79,078 |
) |
|
(32,010 |
) |
||||
Other income (expense): |
||||||||||||||||
Interest expense |
|
(3,235 |
) |
|
(1,760 |
) |
|
(10,566 |
) |
|
(4,426 |
) |
||||
Changes in fair value of warrants |
|
6,175 |
|
|
(922 |
) |
|
8,364 |
|
|
(821 |
) |
||||
Changes in fair value of debt |
|
— |
|
|
— |
|
|
(3,751 |
) |
|
— |
|
||||
Changes in fair value of Revenue Interest Financing and PIPE Conversion Option |
|
(152 |
) |
|
— |
|
|
(2,192 |
) |
|
— |
|
||||
Changes in fair value of earn-out liabilities |
|
4,720 |
|
|
— |
|
|
29,050 |
|
|
— |
|
||||
Termination of convertible note side letters |
|
— |
|
|
— |
|
|
(17,598 |
) |
|
— |
|
||||
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
(3,929 |
) |
|
— |
|
||||
Other income (expense), net |
|
(776 |
) |
|
530 |
|
|
(643 |
) |
|
(344 |
) |
||||
Total other income (expense): |
|
6,732 |
|
|
(2,152 |
) |
|
(1,265 |
) |
|
(5,591 |
) |
||||
Loss before income taxes |
|
(19,006 |
) |
|
(12,300 |
) |
|
(80,343 |
) |
|
(37,601 |
) |
||||
Provision for income taxes |
|
(174 |
) |
|
(48 |
) |
|
(264 |
) |
|
(143 |
) |
||||
Net loss |
|
(19,180 |
) |
|
(12,348 |
) |
|
(80,607 |
) |
|
(37,744 |
) |
||||
Cumulative undeclared preferred dividends |
|
(0 |
) |
|
(732 |
) |
|
(1,697 |
) |
|
(2,907 |
) |
||||
Net loss attributable to common shareholders |
$ |
(19,180 |
) |
$ |
(13,080 |
) |
$ |
(82,304 |
) |
$ |
(40,651 |
) |
||||
Net loss per share |
|
|
|
|||||||||||||
Basic and diluted |
$ |
(0.40 |
) |
|
$ |
(0.48 |
) |
$ |
(2.31 |
) |
$ |
(1.51 |
) |
|||
Weighted-average shares outstanding |
|
|
|
|||||||||||||
Basic and diluted |
|
47,519,884 |
|
|
|
27,006,285 |
|
|
35,581,656 |
|
|
26,918,484 |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands) |
||||||||
|
||||||||
|
|
2023 |
|
|
2022 |
|
||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
38,037 |
|
$ |
7,685 |
|
||
Accounts receivable, net of allowance of doubtful accounts of |
|
18,194 |
|
|
29,346 |
|
||
Inventory, net |
|
6,171 |
|
|
3,865 |
|
||
Prepaid expenses and other current assets |
|
2,414 |
|
|
2,487 |
|
||
Total current assets |
|
64,816 |
|
|
43,383 |
|
||
Property and equipment, net |
|
3,381 |
|
|
2,382 |
|
||
Right-of-use asset |
|
3,010 |
|
|
2,899 |
|
||
Other long-term assets |
|
505 |
|
|
2,706 |
|
||
Total assets |
$ |
71,712 |
|
$ |
51,370 |
|
||
Liabilities and Stockholders’ Deficit |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
10,379 |
|
$ |
5,809 |
|
||
Current portion of term loan |
|
38,643 |
|
|
53,360 |
|
||
Current portion of lease liabilities |
|
908 |
|
|
905 |
|
||
Accrued expenses and other current liabilities |
|
15,495 |
|
|
15,793 |
|
||
Total current liabilities |
|
65,425 |
|
|
75,867 |
|
||
Convertible notes payable, net of discounts |
|
— |
|
|
3,103 |
|
||
Public warrant liabilities |
|
5,943 |
|
|
— |
|
||
Revenue Interest Financing liability |
|
36,200 |
|
|
— |
|
||
Earn-out liabilities |
|
23,990 |
|
|
— |
|
||
Lease liabilities, net of current portion |
|
2,306 |
|
|
2,163 |
|
||
Other liabilities |
|
8,335 |
|
|
2,551 |
|
||
Total liabilities |
|
142,199 |
|
|
83,684 |
|
||
Commitments and Contingencies (Note 16) |
||||||||
Stockholders’ deficit: |
||||||||
Preferred stock, |
|
— |
|
|
— |
|
||
Common stock, |
|
5 |
|
|
3 |
|
||
Additional paid-in capital |
|
143,007 |
|
|
99,875 |
|
||
Accumulated other comprehensive loss |
|
(700 |
) |
|
— |
|
||
Accumulated deficit |
|
(212,799 |
) |
|
(132,192 |
) |
||
Total stockholders’ deficit |
|
(70,487 |
) |
|
(32,314 |
) |
||
Total liabilities and stockholders’ deficit |
$ |
71,712 |
|
$ |
51,370 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240321260031/en/
Global Media
PR Manager
+33 7 84 21 02 20
cdamour@allurion.com
Investors
ICR Westwicke
(617) 877-9641
mike.cavanaugh@westwicke.com
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