On November 13, 2023, Allurion Technologies Inc (ALUR, Financial) released its 8-K filing, detailing the financial outcomes for the third quarter ended September 30, 2023. The company, which is dedicated to ending obesity, reported significant milestones including a 40% sequential revenue growth and the completion of a pivotal FDA trial for its Allurion Balloon product.
Financial Highlights and Business Developments
ALUR's third quarter revenue reached $18.2 million, a 40% increase from the previous quarter and a 13% increase year-over-year. The company also completed its business combination with Compute Health Acquisition Corp., which resulted in a listing on the New York Stock Exchange and generated $92 million in net proceeds.
During the quarter, ALUR completed enrollment in the AUDACITY FDA pivotal trial, which is designed to support a premarket approval application for the Allurion Balloon. Additionally, the company launched Coach Iris, a generative AI-powered weight loss coach, enhancing its virtual care suite.
Income Statement Analysis
ALUR's gross profit margin slightly decreased to 77% in Q3 2023 from 78% in the same period of 2022. Sales and marketing expenses saw a reduction, dropping by approximately $1.7 million to $14.0 million, attributed to delayed investment during the business combination process. Conversely, research and development expenses increased by about $2.1 million to $7.2 million, primarily due to costs associated with the AUDACITY trial.
General and administrative expenses surged to $18.9 million, up from $3.8 million in Q3 2022, mainly due to transaction-related expenses and stock-based compensation associated with becoming a publicly traded entity. Consequently, the loss from operations widened to $26.2 million, compared to a loss of $12.0 million in the previous year.
Balance Sheet and Cash Flow Insights
ALUR's cash balance as of September 30, 2023, stood at $79.9 million, a significant increase from the end of 2022, bolstered by the business combination with Compute Health. The company's total assets amounted to $120.7 million, with current liabilities totaling $87.2 million.
Despite the increase in revenue, ALUR reported a net loss of $21.6 million for the quarter, and a net loss of $61.4 million for the nine-month period ended September 30, 2023. The net loss per share for the quarter was $0.54.
Management Commentary and Outlook
Shantanu Gaur, Founder and CEO of Allurion, commented on the company's performance, noting the transformative nature of the third quarter and expressing confidence in the company's prospects for 2024. Gaur acknowledged the current economic headwinds affecting consumer spending and procedure financing but remained optimistic about the long-term tailwinds in the weight loss market.
“The third quarter of 2023 was transformative for Allurion, as we made our debut as a public company on the New York Stock Exchange. With the capital we have raised, we are investing in the business, and I’m excited to see the results from that in 2024,” said Shantanu Gaur, Founder and Chief Executive Officer of Allurion.
ALUR's management will host a conference call to discuss the quarterly results and provide further insights into the company's strategies and outlook.
Conclusion
Allurion Technologies Inc (ALUR, Financial) has demonstrated resilience and growth in a challenging economic environment, with a strong focus on innovation and technological advancement. The company's strategic initiatives, including the launch of Coach Iris and the completion of the AUDACITY trial, position it favorably for future growth. Investors and stakeholders will be watching closely as ALUR continues to navigate the dynamic weight loss market and leverages its recent capital infusion to drive further success.
Explore the complete 8-K earnings release (here) from Allurion Technologies Inc for further details.
