Vericel Corporation, a leader in advanced therapies for the sports medicine and severe burn care markets, has announced its preliminary, unaudited financial results for the fourth quarter and full year ended December 31, 2024, as well as its financial guidance for 2025 and updated mid-term profitability targets.
For the full-year 2024, the company reported a total net revenue of approximately $237 to $237.5 million, representing a 20% growth. The revenue from its Maci product saw a 20% growth, with a fourth quarter revenue of $68.2 to $68.7 million. Additionally, the burn care net revenue was approximately $40 million, showing a 22% growth.
Vericel achieved a record fourth quarter gross margin of approximately 77% and a non-GAAP adjusted EBITDA margin of approximately 22%. As of December 31, 2024, the company had approximately $167 million in cash, restricted cash, and investments, and no debt, reflecting an increase of approximately $16 million for the quarter.
In the fourth quarter of 2024, the company's total net revenue was approximately $75.2 million to $75.7 million, with the Maci net revenue expected to be approximately $68.2 to $68.7 million, representing a 20% to 21% growth versus the prior year and approximately 53% growth versus the prior quarter. The gross margin for the fourth quarter was expected to be approximately 77%, with a non-GAAP adjusted EBITDA margin expected to be approximately 39%.
Vericel provided a 2025 financial guidance, expecting a total net revenue growth of 20% to 23%, with a gross margin expected to be 73% to 74% and an adjusted EBITDA margin expected to be 25% to 26%.
The company also updated its mid-term profitability targets, expecting the gross margin to increase to the high-70% range and the adjusted EBITDA margin to increase to the high-30% range by 2029.
Nick Colangelo, President and CEO of Vericel, expressed confidence in the company's performance, citing high revenue growth across both franchises, strong margin expansion, and profitability in 2024. He also anticipates another year of high revenue growth, increased utilization of Maci arthro, and significant growth in profitability and cash generation in 2025.
Vericel is expected to present at the 43rd annual J.P. Morgan Healthcare Conference on January 15, 2025, to provide further insights into its financial performance and future outlook. Today the company's shares have moved -7.1% to a price of $54.5. For more information, read the company's full 8-K submission here.
