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Conformis reported 1Q22 orthopedic sales of $15.6 million, +12.4% compared to 1Q21.
Revenue from product sales increased +8.9% in the quarter, driven by fewer canceled surgeries, a modest increase in overall procedure volume, and Conformis’ expanding ASC channel.
The company is shifting its business model to rely more heavily on standardized knee implants like its Imprint line while reserving custom implants for its Platinum Services offering.
Conformis expected the manufacturing inefficiencies brought on by the switch, but struggled with employee absenteeism and turnover. The company says that its current staffing is at 90% of target levels.
The manufacturing issues led to higher scrap costs and longer lead times. Gross margins fell to 34.1%, but Conformis expects improvement throughout the rest of the year as new products and services come online.
Surgeon feedback has been positive with only a small minority pushing back on the change. Conformis CEO Mark Augusti said, “They see the opportunity and understand the pressures in the market and think it makes keen strategic sense to do it. There are probably less than 10% that are going to miss being able to give a true fully custom implant at no charge to their patients.”
In addition to its new Platinum Services program, Conformis expects a limited release of its new hip stem in Q2. A cementless option for the Imprint knee should see a limited release in the fourth quarter and potentially pave the way for cementless options for Conformis’ personalized implants.
Conformis confirmed its 2022 product revenue guidance of $60 million to $70 million, representing a wide range of growth between +3% and +17%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.8 | $13.2 | $1.6 | 12.1% |
| Joint Replacement Hips | $0.8 | $0.7 | $0.1 | 17.6% |
| Total | $15.6 | $13.8 | $1.7 | 12.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.4 | $11.7 | $1.7 | 14.1% |
| OUS | $2.2 | $2.1 | $0.1 | 2.9% |
| Total | $15.6 | $13.8 | $1.7 | 12.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.6 | |
| Cost of Sales | $9.8 | 63.1% |
| Selling and Marketing | $6.7 | 42.9% |
| General and Admin | $9.3 | 60% |
| R & D | $4.5 | 28.8% |
| Other | $1.3 | 8.3% |
| Net Earnings | ($16.0) | (103.1%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 1Q22 orthopedic sales of $15.6 million, +12.4% compared to 1Q21.
Revenue from product sales increased +8.9% in the quarter, driven by fewer canceled surgeries, a modest increase in overall procedure volume, and Conformis' expanding ASC channel.
The company is shifting its business model to rely more heavily on...
Conformis reported 1Q22 orthopedic sales of $15.6 million, +12.4% compared to 1Q21.
Revenue from product sales increased +8.9% in the quarter, driven by fewer canceled surgeries, a modest increase in overall procedure volume, and Conformis’ expanding ASC channel.
The company is shifting its business model to rely more heavily on standardized knee implants like its Imprint line while reserving custom implants for its Platinum Services offering.
Conformis expected the manufacturing inefficiencies brought on by the switch, but struggled with employee absenteeism and turnover. The company says that its current staffing is at 90% of target levels.
The manufacturing issues led to higher scrap costs and longer lead times. Gross margins fell to 34.1%, but Conformis expects improvement throughout the rest of the year as new products and services come online.
Surgeon feedback has been positive with only a small minority pushing back on the change. Conformis CEO Mark Augusti said, “They see the opportunity and understand the pressures in the market and think it makes keen strategic sense to do it. There are probably less than 10% that are going to miss being able to give a true fully custom implant at no charge to their patients.”
In addition to its new Platinum Services program, Conformis expects a limited release of its new hip stem in Q2. A cementless option for the Imprint knee should see a limited release in the fourth quarter and potentially pave the way for cementless options for Conformis’ personalized implants.
Conformis confirmed its 2022 product revenue guidance of $60 million to $70 million, representing a wide range of growth between +3% and +17%.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.8 | $13.2 | $1.6 | 12.1% |
| Joint Replacement Hips | $0.8 | $0.7 | $0.1 | 17.6% |
| Total | $15.6 | $13.8 | $1.7 | 12.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.4 | $11.7 | $1.7 | 14.1% |
| OUS | $2.2 | $2.1 | $0.1 | 2.9% |
| Total | $15.6 | $13.8 | $1.7 | 12.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.6 | |
| Cost of Sales | $9.8 | 63.1% |
| Selling and Marketing | $6.7 | 42.9% |
| General and Admin | $9.3 | 60% |
| R & D | $4.5 | 28.8% |
| Other | $1.3 | 8.3% |
| Net Earnings | ($16.0) | (103.1%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
