OrthoPediatrics Posts Q1 Results; Raises Full-Year Guidance

OrthoPediatrics has released its financial results for its first quarter 2024 (ended March 31).
 
The company generated total Q1 revenue of $44.7 million, which is up 41% from the first quarter 2023. U.S. sales grew 44% and international sales rose 33% in the quarter. The company attributes organic growth in Trauma and Scoliosis products as well as the acquisition of Boston O&P as the main drivers of growth in Q1.
 
Q1 2024’s gross profit on the $44.7 million revenue was $32.2 million, a 37% increase over the same period last year. The company pointed to increased set sales to international stocking partners and lower purchase price adjustments as the reasons for the growth.

Adjusted EBITDA for the first quarter 2024 was a loss of $1.1 million, compared to loss of $2.1 million for the first quarter 2023.
 
Trauma and Deformity products garnered $33.3 million in the quarter, rising 42% over the prior year. OrthoPediatrics cited growth in numerous product lines, highlighting Cannulated Screws, PNP Femur, PediPlate, external fixation and Pega systems, coupled with the addition of Boston O&P.
 
Scoliosis revenue rose 44% to reach $10.2 million in the first quarter, driven by increased RESPONSE and ApiFix system sales. Additional revenue was also generated from 7D technology and the Boston O&P deal. Sports Medicine/Other proceeds grew 5% to $1.2 million.
 
As a result, OrthoPediatrics raised its revenue guidance from $197 million-$200 million to $200 million-$203 million, representing 34-36% growth over 2023 revenue.
 
“I am excited about our very positive start to the year, outperforming our expectations and delivering healthy revenue growth as we continue to take share across the entire business,” said OrthoPediatrics president and CEO David Bailey. “We have multiple levers, including continued legacy product growth, new product launches, and a rapidly expanding specialty bracing business that are working together to drive continued growth and profitability. We will continue to advance our strategic initiatives and feel we are positioned well to capitalize on our opportunities for the remainder of 2024 and beyond.”

OrthoPediatrics Q1 and recent highlights

• Acquired Boston Orthotics & Prosthetics (Boston O&P), a pediatric orthotic management company
• Joined the Alliance for Pediatric Device Innovation
• Launched the RESPONSE rib and pelvic fixation system for early onset scoliosis
• Earned FDA breakthrough status for the eLLi growing rod system