Surmodics, Inc. (NASDAQ:SRDX) Q1 2024 Earnings Call Transcript
Surmodics, Inc. (NASDAQ:SRDX) Q1 2024 Earnings Call Transcript February 1, 2024
Surmodics, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Welcome everyone to the Surmodics First Quarter of Fiscal Year 2024 Earnings Call. Please note that this call is being webcast. The webcast is accessible through the Investor Relations section of the Surmodics website at www.surmodics.com, where an audio replay will be archived for future reference. An earnings press release disclosing Surmodics' quarterly and full-year results was issued earlier today and is available on the company website as well. Before I begin, I'd like to remind everyone that remarks and responses to your questions on today's call may contain forward-looking statements. These forward-looking statements are covered under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements regarding Surmodics' future financial and operating results or other statements that are not historical facts.
Please, be advised that actual results could differ materially from those stated or implied by Surmodics' forward-looking statements, resulting from certain risks and uncertainties, including those described in the company's SEC filings. Surmodics disclaims any duty to update or revise these forward-looking statements as a result of new information, future events, developments, or otherwise. This call will also include references to non-GAAP measures because Surmodics believes they provide useful information for investors. Today's earnings release contains reconciliation tables to GAAP results. I would now like to turn the conference over to Mr. Gary Maharaj, Surmodics' President and Chief Executive Officer. Please go ahead, sir.
Gary Maharaj: Thank you, operator. Welcome everyone to our first quarter fiscal year 2024 earnings call. Here is what we plan to cover today. I'll begin with a high-level overview of our quarterly financial performance followed by a discussion of our recent progress from an operational standpoint and our outlook for the rest of the year. Tim will discuss our Q1 financial results in more detail and review our financial guidance for fiscal 2024, which we updated in today's earnings press release. Then, we'll open the call for questions. Let's start with a discussion of our financial performance. In the first quarter, we were pleased to achieve total revenue growth of 23% year-over-year to $30.6 million. Excluding the SurVeil DCB license fee revenue in both periods, which represented an approximately $300,000 headwind in the quarter, we achieved total revenue growth of 25% year-over-year.
Our total revenue performance came in just above our stated range of expectations for the quarter of $29.5 million to $30.5 million, which we shared on our last earnings call. Importantly, our performance was driven by impressive contributions from both of our business segments. The Medical Device segment grew 24% year-over-year to $23.5 million and increased 27% including the year-over-year headwind related to the SurVeil DCB license fee revenue that I just mentioned. And revenue from our in vitro diagnostics or IVD segment grew 18% year-over-year to $7 million. In our Medical Device segment, growth was primarily driven by record product sales, which increased 43% year-over-year, fueled by our Vascular Interventions device portfolio, specifically our SurVeil drug-coated balloon and Pounce Thrombectomy platform.
We also saw important contributions from royalties and license fees from our performance coatings, as well as R&D services revenue. Growth in our IVD segment, which was exceptionally strong in the quarter benefited from a combination of factors, including strong demand for select products heading into peak influenza season. The timing of orders and the continued return of more normalized purchasing patterns from some of our customers that had taken steps last year to manage COVID era's elevated inventory levels. Lastly, we were pleased to complement our impressive revenue performance with year-over-year improvements in our operating results, delivering adjusted EBITDA of $3.9 million is $7.2 million improvement compared to the first quarter of last year.
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