ANDOVER, MA - TransMedics Group, Inc. (NASDAQ:TMDX), a pioneer in organ transplant technology, reported a substantial earnings beat for the first quarter of 2024, with shares surging 10.5% in response.
The company announced a net income of $12.2 million, or $0.35 per fully diluted share, significantly outperforming the analyst estimate of -$0.03. Revenue also exceeded expectations, coming in at $96.85 million against a consensus estimate of $83.76 million.
The impressive first-quarter results represent a 133% increase in revenue compared to the first quarter of the previous year, which stood at $41.6 million. This growth is attributed mainly to the expanded use of TransMedics' Organ Care System (OCS™) across lung, heart, and liver transplants via the National OCS Program (NOP) and the addition of the company's logistics services.
President and CEO Waleed Hassanein, MD, expressed satisfaction with the quarter's performance, citing the simultaneous achievement of revenue growth, infrastructure expansion, and profitability.
"2024 represents another catalyst heavy year for TransMedics, and we are focused on executing across the board to drive further growth for our business and the overall transplant volumes to help patients in need for organ transplants," Hassanein stated.
Despite the revenue surge, the gross margin for the first quarter declined slightly to 62% from 69% in the same quarter last year, mainly due to a higher proportion of service revenue.
Operating expenses rose to $47.5 million, up from $30.9 million in the first quarter of 2023, driven by increased investments in research and development and organizational support for the company's growth.
Looking ahead, TransMedics has raised its full-year 2024 revenue guidance to a range of $390 million to $400 million, marking a 61% to 66% growth compared to the previous year. The company's prior guidance was set at $360 million to $370 million, indicating a confident outlook for the remainder of the year.
The company's financial health is further underscored by its cash reserves, which stood at $350.2 million as of March 31, 2024. With the market's positive reaction to the earnings report and the upward revision of the full-year revenue forecast, TransMedics is positioned for a year of continued growth and innovation in the organ transplant sector.
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