Core Highlights: - TransMedics reported net income of $4.2 million in Q3 2024, compared to a net loss of $25.4 million in Q3 2023. - Gross margin declined from 61.0% to 56.0% year-over-year. - Total revenue nearly doubled to $108.8 million, driven by increases in both product and service revenue.
Revenue Breakdown: Product revenue (net of $13.2 million cost): - $65.9 million, up 38.0% year-over-year, driven by strong OCS transplant organ product sales. - Heart products sales in the U.S. increased 62.8% to $24.5 million, and lung products sales in the U.S. rose 9.3% to $3.7 million. - Other countries heart product sales grew 38.3% to $2.4 million, while lung and liver product sales remained relatively small. Service revenue (net of $34.7 million cost): - $42.9 million, up 129.6% year-over-year, driven by growth in the National OCS Program providing transportation and logistics services for organ transplants.
Management Outlook: Management noted existing cash of $330.1 million at September 30, 2024 is expected to be sufficient to fund operations for at least 12 months. Key comments: - The acquisition of Summit Aviation in August 2023 enabled TransMedics to add aviation transportation services to its National OCS Program. - Results benefited from continued market adoption and procurement of the OCS technology for heart and lung transplants across the U.S. and internationally. - Management is focused on further scaling manufacturing and logistics capabilities to support increasing demand for OCS products and services.
Operating Data: Other operating metrics and data: - R&D expense of $14.3 million, up 28.1% year-over-year - SG&A expense of $42.7 million, up 39.2% year-over-year - Capital expenditures of $116.1 million, primarily for aircraft and facilities - $59.3 million outstanding long-term debt, primarily $449.2 million convertible senior notes - Cash position of $330.6 million provides over 2 years cash runway based on current operating burn
Operational Risks: Key risk factors disclosed include: - Dependence on key personnel and ability to attract/retain qualified employees - Compliance with government regulations, including FDA marketing approvals - Ability to continue funding operations and R&D of new OCS products - Adequate protection of proprietary technology and intellectual property - Supply chain risks related to certain sole-source suppliers and manufacturers - Interest rate, currency, geopolitical and other risks associated with international operations

Original Filing