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Sep 30, 2023

OrthoPediatrics Q3 2023 Earnings Report

OrthoPediatrics' Q3 2023 financial performance demonstrated strong revenue growth and increased profitability.

Key Takeaways

OrthoPediatrics Corp. reported record-setting quarterly revenue of $40.0 million for Q3 2023, a 14% increase compared to the same period last year. The company also achieved record Adjusted EBITDA of $3.6 million. They reiterated full year 2023 revenue guidance of $148.0 million to $151.0 million and raised adjusted EBITDA guidance to $4.0 million to $5.0 million for the full year of 2023.

Total revenue reached $40.0 million, up 14% from Q3 2022, with domestic revenue increasing by 11% and international revenue by 26%.

Trauma & Deformity revenue grew by 21%, while Scoliosis revenue increased by 3%; Sports Medicine/Other revenue decreased by 20%.

Adjusted EBITDA reached a record $3.6 million, compared to $1.9 million in Q3 2022.

The company launched the Pediatric Nailing Platform TIBIA system and the DF2® Brace, expanding its product offerings.

Total Revenue
$40M
Previous year: $35M
+14.4%
EPS
-$0.13
Previous year: -$0.05
+160.0%
Gross Profit Margin
77%
Previous year: 74.1%
+3.9%
Gross Profit
$31M
Previous year: $25.9M
+19.5%
Cash and Equivalents
$10.6M
Previous year: $35.4M
-70.0%
Free Cash Flow
-$11.1M
Previous year: -$7.15M
+56.0%
Total Assets
$432M
Previous year: $430M
+0.6%

OrthoPediatrics

OrthoPediatrics

OrthoPediatrics Revenue by Segment

OrthoPediatrics Revenue by Geographic Location

Forward Guidance

The Company reiterated its revenue guidance to be in the range of $148.0 million to $151.0 million, representing growth of 21% to 23% over 2022 revenue. The Company now expects annual set deployments of approximately $23.0 million and $4.0 million to $5.0 million of adjusted EBITDA for the full year of 2023.

Positive Outlook

  • Revenue guidance of $148.0 million to $151.0 million, representing growth of 21% to 23% over 2022 revenue.
  • Adjusted EBITDA guidance of $4.0 million to $5.0 million for the full year of 2023.
  • Expecting annual set deployments of approximately $23.0 million.
  • Strong balance sheet.
  • Recent product portfolio expansion.

Challenges Ahead

  • Not enough information to provide negative guidance

Revenue & Expenses

Visualization of income flow from segment revenue to net income