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Mar 31, 2023

Merit Medical Q1 2023 Earnings Report

Merit Medical's Q1 2023 performance was highlighted by revenue growth and improved profitability.

Key Takeaways

Merit Medical reported revenue of $297.6 million for Q1 2023, an 8.0% increase compared to Q1 2022. The company's constant currency revenue, organic, increased by 9.8%. GAAP EPS was $0.36, while non-GAAP EPS was $0.64. The company also delivered significant year-over-year improvements in profitability with non-GAAP gross and operating margins of 50.1% and 16.1%, respectively.

Reported revenue increased by 8.0% to $297.6 million compared to Q1 2022.

Constant currency revenue, organic, rose by 9.8% compared to Q1 2022.

GAAP operating margin improved to 8.9% from 5.5% in Q1 2022.

Non-GAAP operating margin increased to 16.1% from 14.6% in Q1 2022.

Total Revenue
$298M
Previous year: $275M
+8.0%
EPS
$0.64
Previous year: $0.53
+20.8%
GAAP Operating Margin
8.9%
Previous year: 5.5%
+61.8%
Non-GAAP Operating Margin
16.1%
Previous year: 14.6%
+10.3%
Gross Profit
$138M
Previous year: $121M
+14.4%
Cash and Equivalents
$57.9M
Previous year: $53.9M
+7.6%
Free Cash Flow
$1.76M
Previous year: $2.48M
-29.1%
Total Assets
$1.68B
Previous year: $1.63B
+3.3%

Merit Medical

Merit Medical

Merit Medical Revenue by Segment

Forward Guidance

Merit Medical updated its 2023 financial guidance to reflect the better-than-expected financial results in the first quarter. The company remains confident in its team’s ability to deliver continued progress in year three of its Foundations for Growth Program.

Positive Outlook

  • Net Sales: $1.217 - $1.229 billion
  • Cardiovascular Segment: $1.179 - $1.191 billion
  • Endoscopy Segment: $37.8 - $38.1 million
  • GAAP Net Income: $100 - $105 million
  • Non-GAAP Net Income: $166 - $171 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income