Vericel Corp (VCEL) Reports Robust Revenue and EBITDA Growth in Q4 and Full-Year 2023
Q4 Revenue Surge: Vericel Corp (NASDAQ:VCEL) reported a 23% increase in Q4 revenue, reaching $65.0 million.
Full-Year Revenue Growth: Full-year 2023 revenue grew by 20% to $197.5 million.
Net Income Leap: Q4 net income soared by 119% to $13.0 million, or $0.26 per diluted share.
Adjusted EBITDA Growth: Adjusted EBITDA for Q4 increased by 50% to $22.3 million, with a margin of 34%.
2024 Financial Guidance: Vericel anticipates 2024 total net revenue to be between $237 to $241 million with an adjusted EBITDA margin of approximately 20%.
On February 29, 2024, Vericel Corp (NASDAQ:VCEL) released its 8-K filing, detailing a strong financial performance for the fourth quarter and full year of 2023. The company, a fully integrated, commercial-stage biopharmaceutical company specializing in advanced therapies for sports medicine and severe burn care markets, has reported significant growth in both revenue and profitability metrics.
Financial Performance and Highlights
Vericel's total net revenue for Q4 2023 increased by 23% to $65.0 million, compared to the same period in the previous year. This growth was driven by a 22% increase in MACI net revenue, which reached $56.7 million, and a 31% increase in Burn Care net revenue, totaling $8.3 million. The company's gross margin for the quarter stood at an impressive 75%, contributing to a net income growth of 119% to $13.0 million, or $0.26 per diluted share. The non-GAAP adjusted EBITDA also saw a significant increase of 50% to $22.3 million, representing an adjusted EBITDA margin of 34%.
For the full year of 2023, Vericel achieved a 20% increase in total net revenue, amounting to $197.5 million. The MACI net revenue saw a 25% growth, reaching $164.8 million, while Burn Care net revenue was reported at $32.7 million. The company maintained a strong gross margin of 69% for the year, despite reporting a net loss of $3.2 million, or $0.07 per diluted share. However, the non-GAAP adjusted EBITDA for the year was positive at $33.9 million, with a margin of 17%.
Operational Achievements and Future Outlook
Vericel's operational achievements in Q4 included the highest number of MACI implants, implanting surgeons, surgeons taking biopsies, and MACI biopsies since the product's launch. The company also reported the highest number of Epicel biopsies in a quarter since 2021. Looking ahead, Vericel provided a positive outlook for 2024, with total net revenue expected to be in the range of $237 to $241 million and an anticipated gross margin of approximately 70%. The adjusted EBITDA margin is projected to be around 20%.
"The Company executed exceptionally well in 2023 and delivered outstanding financial and business results in the fourth quarter, generating top-tier revenue growth and even higher growth in our profitability metrics," said Nick Colangelo, President and CEO of Vericel. "We expect that the momentum in our core portfolio and new product launches across our MACI and Burn Care commercial franchises will drive continued strong revenue growth and profitability in 2024 and the years ahead."
Vericel's strong financial performance, coupled with its strategic initiatives and product launches, positions the company for sustained growth. The company's focus on advanced therapies for sports medicine and severe burn care markets continues to resonate with the medical community, driving increased adoption and usage of its products.
Investors and stakeholders can access more details about Vericel's financial performance and future projections during the company's conference call, which is available through the Investor Relations section of the Vericel website.
For a comprehensive understanding of Vericel Corp's financials and strategic direction, interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Vericel Corp for further details.
This article first appeared on GuruFocus.
