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Conformis reported 3Q22 orthopedic sales of $13.8 million, -3.3% compared to the third quarter of 2021. The company expects 2022 product revenue of around $58 million, achieving the low end of its guidance range but declining slightly compared to the previous year.
As the company transitions to a model focused on its Imprint knee system and custom Platinum Services offering, it has found that topline revenue growth is taking longer than expected. About 90% of Conformis’ existing customers now have Imprint on contract. Additionally, 49 facilities are now enrolled in Platinum Services, up from 21 in the second quarter.
However, Platinum Services requires significant changes to the normal billing workflow of many Conformis customers.
Company CEO Mark Augusti said, “We’re taking the feedback from customers. They agree to the program, but then it takes them a little longer to implement a change in their billing and collection since this is outside their normal sort of course of business. We’re putting some things in place and working with consultants to try to package some stuff up to help that implementation go quicker.”
Conformis plans to eliminate between $10 and $12 million in “variable and employee-related” costs through 2023. The company expects to keep cost containment measures in place until topline momentum returns.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $13.2 | $13.5 | ($0.3) | (2.4%) |
| Joint Replacement Hips | $0.6 | $0.8 | ($0.1) | (19%) |
| Total | $13.8 | $14.3 | ($0.5) | (3.3%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $42.5 | $82.1 | ($39.6) | (48.3%) |
| Joint Replacement Hips | $2.2 | $2.3 | ($0.2) | (7.7%) |
| Total | $44.6 | $84.4 | ($39.8) | (47.1%) |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $12.2 | $12.5 | ($0.3) | (2.8%) |
| OUS | $1.6 | $1.7 | ($0.1) | (7%) |
| Total | $13.8 | $14.3 | ($0.5) | (3.3%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $39.1 | $78.8 | ($39.7) | (50.4%) |
| OUS | $5.5 | $5.6 | ($0.1) | (1.9%) |
| Total | $44.6 | $84.4 | ($39.8) | (47.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $13.8 | |
| Cost of Sales | $8.9 | 64.8% |
| Selling and Marketing | $5.6 | 40.4% |
| General and Admin | $7.6 | 55.2% |
| R & D | $3.7 | 26.7% |
| Other | $3.2 | 23.3% |
| Net Earnings | ($15.2) | (110.3%) |
Conformis reported 3Q22 orthopedic sales of $13.8 million, -3.3% compared to the third quarter of 2021. The company expects 2022 product revenue of around $58 million, achieving the low end of its guidance range but declining slightly compared to the previous year.
As the company transitions to a model focused on its Imprint knee system...
Conformis reported 3Q22 orthopedic sales of $13.8 million, -3.3% compared to the third quarter of 2021. The company expects 2022 product revenue of around $58 million, achieving the low end of its guidance range but declining slightly compared to the previous year.
As the company transitions to a model focused on its Imprint knee system and custom Platinum Services offering, it has found that topline revenue growth is taking longer than expected. About 90% of Conformis’ existing customers now have Imprint on contract. Additionally, 49 facilities are now enrolled in Platinum Services, up from 21 in the second quarter.
However, Platinum Services requires significant changes to the normal billing workflow of many Conformis customers.
Company CEO Mark Augusti said, “We’re taking the feedback from customers. They agree to the program, but then it takes them a little longer to implement a change in their billing and collection since this is outside their normal sort of course of business. We’re putting some things in place and working with consultants to try to package some stuff up to help that implementation go quicker.”
Conformis plans to eliminate between $10 and $12 million in “variable and employee-related” costs through 2023. The company expects to keep cost containment measures in place until topline momentum returns.
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
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $13.2 | $13.5 | ($0.3) | (2.4%) |
| Joint Replacement Hips | $0.6 | $0.8 | ($0.1) | (19%) |
| Total | $13.8 | $14.3 | ($0.5) | (3.3%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement Knees | $42.5 | $82.1 | ($39.6) | (48.3%) |
| Joint Replacement Hips | $2.2 | $2.3 | ($0.2) | (7.7%) |
| Total | $44.6 | $84.4 | ($39.8) | (47.1%) |
Orthopedic Sales by Geography
| 3Q22 | 3Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $12.2 | $12.5 | ($0.3) | (2.8%) |
| OUS | $1.6 | $1.7 | ($0.1) | (7%) |
| Total | $13.8 | $14.3 | ($0.5) | (3.3%) |
| 9m22 | 9m21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $39.1 | $78.8 | ($39.7) | (50.4%) |
| OUS | $5.5 | $5.6 | ($0.1) | (1.9%) |
| Total | $44.6 | $84.4 | ($39.8) | (47.1%) |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $13.8 | |
| Cost of Sales | $8.9 | 64.8% |
| Selling and Marketing | $5.6 | 40.4% |
| General and Admin | $7.6 | 55.2% |
| R & D | $3.7 | 26.7% |
| Other | $3.2 | 23.3% |
| Net Earnings | ($15.2) | (110.3%) |
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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.
