Treace Medical Concepts, Inc. · NASDAQ:TMCI
Treace Medical Concepts — Q4 2023 Earnings Presentation
19 slides from Treace Medical Concepts's earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation February 27, 2024 On solid footing for sustained top-tier growth 1 EX-99.2
Slide 2: Forward-Looking Statements
This presentation may include forward- looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, strategy and plans, industry environment, potential growth oppor
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures 3 To supplement the financial results presented in accordance with GAAP, this presentation presents Adjusted EBITDA, which the Company defines as net loss before depreciation and amortization expense, interest income, interest expense, taxes, share-based compensation expe
Slide 4: Treace Medical Concepts, Inc.
Treace Medical Concepts, Inc. Pure-play medical device company focused on the surgical treatment of bunions and related deformities 57 US PATENTS1 80 US PENDING PATENTS Growing FY 2023 revenue of $187.1 million (+32% YOY growth) 5-year revenue growth CAGR of +60% Just getting started 10 new product
Slide 5: 4Q and Full-Year 2023 Results Summary
4Q and Full-Year 2023 Results Summary 5 $ in millions, except % 4Q’23 Y-Y Change FY 2023 Y-Y Change Revenue $62.2 +25% $187.1 +32% Gross Margin 81.6% -30 bps 81.2% -80 bps Net Loss $(6.3) -42% $(49.5) -16% Non-GAAP Adjusted EBITDA¹ $2.6 +663% $(24.4) +2% Added 164 surgeons in 4Q’23 and ended 2023 wi
Slide 6: 4Q 2023 Key Messages
4Q 2023 Key Messages 6 Revenue YoY growth of +25% in 4Q’23 and +32% in 2023 above high-end of previous guidance range Positive Adj. EBITDA of $2.6 million in 4Q’23; Adj. EBITDA margin improved 460 bps in 2023 vs. 2022 Results demonstrate underlying strength and effectiveness of strategic investments
Slide 7: Strong presence at ACFAS Annual Scientific Conference
Strong presence at ACFAS Annual Scientific Conference 7 View Press Release View Clinical Presentations
Slide 8: Taking Bold Steps to Capture the Market
Taking Bold Steps to Capture the Market (1) 4-year CAGR reflects Q4 2019 to Q4 2023 (2) Active Surgeons perform at least one Lapiplasty® procedure in trailing 12 months 30% 4-year CAGR in Active Surgeons¹ Early in utilization curve: nearly 40% of surgeons added in last two years 30% Approaching usin
Slide 9: Increased Experience Leads to Increased Utilization
Increased Experience Leads to Increased Utilization 9 Years Using the Lapiplasty® System # of Cases per Surgeon Last Twelve Months Average Surgeon Usage1 Data as of December 31, 2023. Active Surgeons perform at least one Lapiplasty® procedure in trailing 12 months. The usage in this chart represents
Slide 10: Market-capturing momentum
Blended ASP Market-capturing momentum A Step Ahead Revenue growth driven by increasing surgeon utilization, new surgeon users and higher blended average sales prices (BASP) BASP expansion driven by next-gen Lapiplasty® technologies and complementary product usage $17.7 2018 $39.4 2019 $57.4 2020 $14
Slide 11: Fixation Platform, a giant step forward
“The biggest thing from Treace since Lapiplasty®” “Total game changer” Fixation Platform, a giant step forward SpeedPlate™ - a new standard for foot and ankle fixation for Lapiplasty®, Adductoplasty® and BEYOND. We expect it to fuel continued revenue growth and new surgeon additions. SURGEONS SAY: 1
Slide 12: Micro-Lapiplasty System
“I’d like the slowest recovery possible” Through continued refinement and innovation, the Lapiplasty® procedure can now be performed through a micro 2cm incision Lapiplasty® Procedure ~7cm Incision; 2015 Mini-Incision™ System ~3.5cm Incision; 2021 Micro-Lapiplasty™ System ~2cm Incision; Q1 2024 Uses
Slide 13: Building on our strengths: Powerful Future Pipeline
Building on our strengths 13 Powerful Future Pipeline REDPOINT™ PSI TECHNOLOGY Pre-operative planning and patient-specific cut guides Strengthens market leadership position and competitive differentiation First to U.S. market with FDA-cleared PSI solution for bunion and midfoot deformity correction
Slide 14: Mini-Adductoplasty System Coming in 2H 2024
Coming in 2H 2024 Mini-Adductoplasty™ System 14 MTA: Metatarsus adductus (1) American College of Foot and Ankle Surgeons Website (2) Nix S, et al. J Foot Ankle Res 2010; Sep 27:3:21 (3) Aiyer AA, et al. FAI 2016; 37:165-171 (4) Aiyer AA, et al. FAI 2014; 35:1292-1297 Designed to be performed through
Slide 15: Meaningful leverage opportunities to drive profitability
Meaningful leverage opportunities to drive profitability Continued focus on operating expense leverage & management Scalability of business Technology-enabled efficiencies Adj. EBITDA margin improved +460 bps in 2023 vs. 2022 The Company defines Non-GAAP Adjusted EBITDA as net loss before depreciati
Slide 16: Full-Year 2024 Guidance
Full-Year 2024 Guidance 16 Guidance range communicated on 2/27/2024. The fact that we include these projections in this presentation should not be taken to mean that these amounts continue to be our projections as of any subsequent date. See slide 2 entitled “Forward-Looking Statements” for more inf
Slide 17: Solid footing, setting the pace
Solid footing, setting the pace Differentiated technology and innovative procedures backed by compelling clinical evidence Positioned to deliver sustainable, strong ~20%+ revenue growth in 2024 and beyond Driving towards Adj. EBITDA breakeven for full-year 2024 and free cash flow positive in 2025 Fa
Slide 18: For Additional Information, Please Contact
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: www.treace.com NASDAQ: TMCI Julie Dewey, IRC jddewey@treace.com 209-613-6945 18 Chief Communications & Investor Relations Officer
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 19
Treace Medical Concepts — Q4 2023 Earnings Presentation on 6ix