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Conformis reported 3Q20 orthopedic revenue of USD $16.1 million, -6.8% vs. 3Q19. The company remains impacted by the slower recovery of primary arthroplasty surgeries, its sole line of business, compared to revision and trauma. Leadership expects sequential revenue improvement in the fourth quarter, but lower year over year growth rates due to 4Q19’s tougher comparison of $19.9 million.
In September, Conformis agreed to sell a combination of stock and warrants to a health-focused institutional investor that raised $17.25 million. In addition to those funds, the company achieved the second milestone payment of $3 million from its partnership with Stryker. Conformis is on track to achieve the final milestone payment of $11 million in mid-2021. All told, these funds move the company toward the goal of cash flow breakeven.
Conformis also made progress on its ASC-focused knee implant and anticipates launching it 2H21.
“I think total knee arthroplasty, the robotics trend, the cementless trend and the trend to ASCs are the biggest things going on right now. We’re very pleased that we think we have the best delivery model for the ASC site of care.” – Mark Augusti, Conformis President & CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $15.2 | $16.9 | ($1.7) | (9.9%) |
| Joint Replacement Hips | $0.9 | $0.4 | $0.5 | 122.2% |
| Total | $16.1 | $17.3 | ($1.2) | (6.8%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $50.1 | $56.1 | ($6.0) | (10.7%) |
| Joint Replacement Hips | $1.9 | $1.4 | $0.5 | 35.7% |
| Total | $52.1 | $57.5 | ($5.5) | (9.5%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $14.3 | $15.3 | ($1.1) | (6.8%) |
| OUS | $1.8 | $2.0 | ($0.1) | (6.7%) |
| Total | $16.1 | $17.3 | ($1.2) | (6.8%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $46.4 | $50.6 | ($4.2) | (8.3%) |
| OUS | $5.7 | $7.0 | ($1.3) | (18.2%) |
| Total | $52.1 | $57.5 | ($5.5) | (9.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $16.1 | |
| Cost of Sales | $8.4 | 52.3% |
| Selling and Marketing | $5.8 | 35.7% |
| General and Admin | $6.1 | 38% |
| R & D | $2.9 | 17.8% |
| Other | ($0.9) | (5.5%) |
| Net Earnings | ($6.2) | (38.4%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Conformis reported 3Q20 orthopedic revenue of USD $16.1 million, -6.8% vs. 3Q19. The company remains impacted by the slower recovery of primary arthroplasty surgeries, its sole line of business, compared to revision and trauma. Leadership expects sequential revenue improvement in the fourth quarter, but lower year over year growth rates due...
Conformis reported 3Q20 orthopedic revenue of USD $16.1 million, -6.8% vs. 3Q19. The company remains impacted by the slower recovery of primary arthroplasty surgeries, its sole line of business, compared to revision and trauma. Leadership expects sequential revenue improvement in the fourth quarter, but lower year over year growth rates due to 4Q19’s tougher comparison of $19.9 million.
In September, Conformis agreed to sell a combination of stock and warrants to a health-focused institutional investor that raised $17.25 million. In addition to those funds, the company achieved the second milestone payment of $3 million from its partnership with Stryker. Conformis is on track to achieve the final milestone payment of $11 million in mid-2021. All told, these funds move the company toward the goal of cash flow breakeven.
Conformis also made progress on its ASC-focused knee implant and anticipates launching it 2H21.
“I think total knee arthroplasty, the robotics trend, the cementless trend and the trend to ASCs are the biggest things going on right now. We’re very pleased that we think we have the best delivery model for the ASC site of care.” – Mark Augusti, Conformis President & CEO
Revenue Data
All revenue data is provided in USD millions unless otherwise noted. Sales and growth rates are estimated on an as-reported basis.
Segment Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $15.2 | $16.9 | ($1.7) | (9.9%) |
| Joint Replacement Hips | $0.9 | $0.4 | $0.5 | 122.2% |
| Total | $16.1 | $17.3 | ($1.2) | (6.8%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $50.1 | $56.1 | ($6.0) | (10.7%) |
| Joint Replacement Hips | $1.9 | $1.4 | $0.5 | 35.7% |
| Total | $52.1 | $57.5 | ($5.5) | (9.5%) |
Geographic Sales
| 3Q20 | 3Q19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $14.3 | $15.3 | ($1.1) | (6.8%) |
| OUS | $1.8 | $2.0 | ($0.1) | (6.7%) |
| Total | $16.1 | $17.3 | ($1.2) | (6.8%) |
| 9m20 | 9m19 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $46.4 | $50.6 | ($4.2) | (8.3%) |
| OUS | $5.7 | $7.0 | ($1.3) | (18.2%) |
| Total | $52.1 | $57.5 | ($5.5) | (9.5%) |
Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $16.1 | |
| Cost of Sales | $8.4 | 52.3% |
| Selling and Marketing | $5.8 | 35.7% |
| General and Admin | $6.1 | 38% |
| R & D | $2.9 | 17.8% |
| Other | ($0.9) | (5.5%) |
| Net Earnings | ($6.2) | (38.4%) |
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.
