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Conformis reported 4Q21 orthopedic sales of $15.4 million, -7.6% vs. 4Q20. For the full year, the company generated $99.9 million. Product revenue declined -0.5% vs. 2020 and remains down -24% vs. 2019.
Protecting and monetizing its intellectual property is crucial for Conformis. The company’s recurring royalty revenue is about 1% of its total revenue in any given quarter. In 2021, however, royalty revenue accounted for 42% of total revenue for the year.
Conformis hopes that new products like the Identity knee and an upcoming hip for the direct anterior approach will reinvigorate product sales. The company also focused on a segment of patients who want a premium experience with its Platinum Services Program. The program has also served as a valuable recruiting tool, and Conformis expects to bolster its salesforce in 2022.
However, like most companies, Conformis feels the pinch from difficult market conditions. Company CFO Bob Howe said, “We’ve experienced an increased impact from a tough labor market, combined with COVID-related absenteeism. This has negatively affected our manufacturing capacity and efficiency and resulted in higher scrap, shipment delays and a temporary increase in our delivery lead times. Turnover is higher than normal, and finding qualified talent takes much longer and is more expensive. We have addressed this by adjusting compensation for our workforce to align with current market trends.”
Conformis expects 2022 total revenue in the range of $60 million to $70 million, with first-quarter revenue between $13.5 million and $14.5 million.
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
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.7 | $16.0 | ($1.3) | (8.3%) |
| Joint Replacement Hips | $0.7 | $0.6 | $0.1 | 8% |
| Total | $15.4 | $16.7 | ($1.3) | (7.6%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $96.9 | $66.2 | $30.6 | 46.3% |
| Joint Replacement Hips | $3.0 | $2.5 | $0.5 | 18.2% |
| Total | $99.9 | $68.8 | $31.1 | 45.2% |
Orthopedic Sales by Geography
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.7 | $14.6 | ($0.9) | (6.2%) |
| OUS | $1.7 | $2.1 | ($0.4) | (17.7%) |
| Total | $15.4 | $16.7 | ($1.3) | (7.6%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.5 | $61.0 | $31.6 | 51.8% |
| OUS | $7.3 | $7.8 | ($0.5) | (6.1%) |
| Total | $99.9 | $68.8 | $31.1 | 45.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.4 | |
| Cost of Sales | $9.5 | 61.4% |
| Selling and Marketing | $7.1 | 45.7% |
| General and Admin | $8.2 | 53.4% |
| R & D | $4.1 | 26.3% |
| Other | $2.5 | 16.5% |
| Net Earnings | ($15.9) | (103.3%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 4Q21 orthopedic sales of $15.4 million, -7.6% vs. 4Q20. For the full year, the company generated $99.9 million. Product revenue declined -0.5% vs. 2020 and remains down -24% vs. 2019.
Protecting and monetizing its intellectual property is crucial for Conformis. The company's recurring royalty revenue is about 1% of its...
Conformis reported 4Q21 orthopedic sales of $15.4 million, -7.6% vs. 4Q20. For the full year, the company generated $99.9 million. Product revenue declined -0.5% vs. 2020 and remains down -24% vs. 2019.
Protecting and monetizing its intellectual property is crucial for Conformis. The company’s recurring royalty revenue is about 1% of its total revenue in any given quarter. In 2021, however, royalty revenue accounted for 42% of total revenue for the year.
Conformis hopes that new products like the Identity knee and an upcoming hip for the direct anterior approach will reinvigorate product sales. The company also focused on a segment of patients who want a premium experience with its Platinum Services Program. The program has also served as a valuable recruiting tool, and Conformis expects to bolster its salesforce in 2022.
However, like most companies, Conformis feels the pinch from difficult market conditions. Company CFO Bob Howe said, “We’ve experienced an increased impact from a tough labor market, combined with COVID-related absenteeism. This has negatively affected our manufacturing capacity and efficiency and resulted in higher scrap, shipment delays and a temporary increase in our delivery lead times. Turnover is higher than normal, and finding qualified talent takes much longer and is more expensive. We have addressed this by adjusting compensation for our workforce to align with current market trends.”
Conformis expects 2022 total revenue in the range of $60 million to $70 million, with first-quarter revenue between $13.5 million and $14.5 million.
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
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $14.7 | $16.0 | ($1.3) | (8.3%) |
| Joint Replacement Hips | $0.7 | $0.6 | $0.1 | 8% |
| Total | $15.4 | $16.7 | ($1.3) | (7.6%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $96.9 | $66.2 | $30.6 | 46.3% |
| Joint Replacement Hips | $3.0 | $2.5 | $0.5 | 18.2% |
| Total | $99.9 | $68.8 | $31.1 | 45.2% |
Orthopedic Sales by Geography
| 4Q21 | 4Q20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $13.7 | $14.6 | ($0.9) | (6.2%) |
| OUS | $1.7 | $2.1 | ($0.4) | (17.7%) |
| Total | $15.4 | $16.7 | ($1.3) | (7.6%) |
| FY21 | FY20 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $92.5 | $61.0 | $31.6 | 51.8% |
| OUS | $7.3 | $7.8 | ($0.5) | (6.1%) |
| Total | $99.9 | $68.8 | $31.1 | 45.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $15.4 | |
| Cost of Sales | $9.5 | 61.4% |
| Selling and Marketing | $7.1 | 45.7% |
| General and Admin | $8.2 | 53.4% |
| R & D | $4.1 | 26.3% |
| Other | $2.5 | 16.5% |
| Net Earnings | ($15.9) | (103.3%) |
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.
