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KIDS Nasdaq· OrthoPediatrics Corporation
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KIDS Nasdaq· OrthoPediatrics Corporation
Earnings report Q3 2023

OrthoPediatrics Corp. Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

OrthoPediatrics Corp. reported robust revenue growth in the latest quarter. Net revenue for the three months ended September 30, 2023, reached $39.97 million, compared to $34.95 million in the same period last year. This represents a significant increase of 14.4% year-over-year.

Strengths

The company's revenue growth can be attributed to strong performance across its product categories. Product sales in the trauma and deformity segment, which accounted for the majority of revenue, increased to $28.81 million in the latest quarter, up from $23.89 million in the same period last year. This growth can be attributed to increased demand for OrthoPediatrics' trauma and deformity products.

Additionally, the scoliosis segment also showed positive growth, with product sales amounting to $10.30 million in the latest quarter, compared to $9.98 million in the same period last year. The company's focus on developing innovative solutions for scoliosis treatment has contributed to this growth.

Management comments highlight the company's commitment to expanding its product portfolio and investing in research and development. These efforts have allowed OrthoPediatrics to meet the evolving needs of its customers and gain market share.

Challenges

While OrthoPediatrics Corp. demonstrated strong revenue growth, it reported an operating loss of $4.51 million for the latest quarter. This can be attributed to increased operating expenses, including sales and marketing, general and administrative, and research and development costs. The company's investment in these areas is essential for future growth but has impacted profitability in the short term.

Noteworthy

It is worth noting that OrthoPediatrics Corp. experienced growth in both domestic and international markets. Product sales in the United States reached $29.36 million, compared to $26.54 million in the same period last year. International sales also showed significant growth, amounting to $10.61 million, up from $8.41 million in the previous year.

Summary

OrthoPediatrics Corp. delivered strong revenue growth in the latest quarter, driven by increased sales in the trauma and deformity as well as scoliosis segments. The company's focus on product innovation and expanding its product portfolio has allowed it to capture market share and meet customer demand. However, the company reported an operating loss due to higher operating expenses. Overall, OrthoPediatrics Corp. remains well-positioned for future growth, supported by its commitment to research and development and expanding its presence in both domestic and international markets.

Source documents

Form 10-Q  filed on Nov 07, 2023
43 pages scanned

Reference data

Company financials Q3 revenue 37.6M
Analyst estimates Q3 EPS beat by 16.46%
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