• Revenue: $145.8 million, up 23% year over year.
• Global VTE Revenue: $137.7 million, up 20.7% year over year.
• Global Emerging Therapies Revenue: $8.1 million, up 65.6% year over year.
• International Revenue: $10 million, up 92.9% year over year.
• Gross Margin: 86.3%, compared to 88.4% in the prior year period.
• Operating Expenses: $148.3 million, compared to $106.7 million in the prior year.
• R&D Expense: $24.9 million, up 18.1% year over year.
• SG&A Expense: $114.2 million, up 33.4% year over year.
• GAAP Operating Loss: $22.4 million, compared to $1.5 million in the prior year.
• Net Loss: $31.3 million, compared to net income of $2.1 million in the prior year.
• Cash and Investments: $109.7 million at the end of the second quarter.
• 2024 Revenue Guidance: Raised to $594.5 million to $604.5 million.

• Warning! GuruFocus has detected 4 Warning Signs with NARI.

Release Date: July 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Inari Medical Inc (NASDAQ:NARI) achieved record revenue of $145.8 million in Q2 2024, marking a 23% year-over-year growth.
• The company increased its annual revenue guidance, reflecting confidence in continued strong performance.
• Inari Medical Inc (NASDAQ:NARI) reported strong growth in its international business, with revenue up 93% compared to the prior year.
• The company is making significant progress with its emerging therapies, reporting a 66% increase in revenue from this segment.
• Inari Medical Inc (NASDAQ:NARI) is on track to reach sustained operating profitability in the first half of 2025.

Negative Points

• Inari Medical Inc (NASDAQ:NARI) reported a GAAP operating loss of $22.4 million for Q2 2024, compared to a loss of $1.5 million in the same period of the prior year.
• The company's gross margin decreased to 86.3% from 88.4% in the prior year period, due to product mix and ramp-up costs.
• Operating expenses increased significantly to $148.3 million in Q2 2024, up from $106.7 million in the prior year.
• The company is facing a DOJ inquiry, which remains an overhang and could take quarters or years to resolve.
• Inari Medical Inc (NASDAQ:NARI) issued a voluntary field notice for its ClotTriever XL Catheter, although it is not expected to impact revenue.

Q & A Highlights

Q: How does the US VTE sales growth of about 17% year over year for the quarter compare to the underlying core market growth, and do you see that growth sustaining into the second half of the year? A: Andrew Hykes, CEO: We saw 21% growth in VTE in Q2, with robust underlying market growth in the US around 20%. We anticipate this growth to continue, maintaining our market leadership despite competitive dynamics.

Q: What are the key drivers of sequential growth in Q3 and Q4, and are there any competitive headwinds expected in the second half? A: Andrew Hykes, CEO: The $2 million increase in guidance reflects confidence in our business strength. Key drivers include the full-market release of core products, anticipated re-entry into acute limb ischemia, and international launches in China and Japan. We expect stronger growth in Q4 due to these catalysts.

Q: Can you provide an update on the DOJ inquiry and its potential resolution timeline? A: Andrew Hykes, CEO: We continue to cooperate with the DOJ, and the inquiry has not impacted our commercial strategy. While resolution could happen sooner, precedent suggests a timeline measured in quarters or years.

Q: How is the LimFlow limited launch progressing, and what impact will the rollout of the second-gen system have? A: Kevin Strange, Incoming CFO: The LimFlow integration is progressing well, with positive market traction and physician enthusiasm. 2024 is a foundation-building year, and we expect positive momentum in 2025 with catalysts like the NTAP and new handle launch.

Q: Can you provide more details on the voluntary field notice for ClotTriever XL and its impact? A: Kevin Strange, Incoming CFO: The voluntary field notice offers additional procedural guidance and is not related to device malfunction. It affects a small subset of patients and is not expected to impact revenue. Our patient-first approach ensures transparent communication to reduce risks.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.