Allurion Technologies Inc. Q4 FY2024 earnings call

• Vision for obesity care: Believes combining Allurion program with low-dose GLP-1s can be a new standard of care. Synergies include mitigated side effects of GLP-1s at lower doses, rapid weight loss from Allurion Balloon and lifestyle strategies, and dual action of satiety and reduced hunger. • Fourth quarter and full year 2024 results: Revenue down due to temporary sales suspension in France and macroeconomic headwinds. Gross profit impacted by revenue reduction and inventory issues. • 2025 plan: Five pillars include new commercial plan, FDA approval for Allurion Balloon, achieving profitability for ex-US business by end 2025, scaling AI product platform, and resuming commercialization in France. • Progress in 2025: Reorganized sales and marketing teams, begun hiring for direct markets, pilot new commercial strategy showing 30%+ procedure volume increase in Q1 2025 vs Q4 2024, positive AUDACITY trial results for PMA application, and resumption of sales in France after ANSM review.

Fourth quarter 2024 revenue was $5.6 million, down from $8.2 million in the same period of 2023. Gross profit for Q4 2024 was $2.5 million (45% of revenue) compared to $6.4 million (78% of revenue) in 2023. Full year 2024 revenue was $32.1 million, with gross profit of $21.5 million (67% of revenue). Sales and marketing expenses for Q4 2024 were $7.9 million vs $10.7 million in 2023, research and development expenses were $4.1 million vs $6.1 million, and general and administrative expenses were $7.7 million vs $15.4 million. Loss from operations for Q4 was $17.1 million vs $25.7 million in 2023.

• 2025 revenue expected to be approximately $30 million. • Operating expenses expected to decline ~50% in 2025 compared to 2024. • Aim to be EBITDA positive in 2026. • PMA submission for Allurion Balloon expected in first half of 2025. • France contribution not material in 2025, expected later. • Sales team expected to grow in 2025 while reducing operating expenses.

• Regulatory uncertainties related to FDA approval of Allurion Balloon. • Market adoption challenges for combination therapy of Allurion Balloon and low-dose GLP-1s. • Macroeconomic headwinds impacting reorder rates in certain markets. • Potential delays in resuming full sales and commercialization in France.

Q: Expand on reasons for weight loss and lean mass gain with combination of Allurion Balloon and low-dose GLP-1.

A: Lower dose GLP-1 protects lean body mass, synergistic mechanisms of satiety from balloon and hunger suppression from GLP-1, plus support from Virtual Care Suite and lifestyle strategies lead to weight loss and lean mass gain.

Q: Key assumptions for 2025 guidance of $30 million?

A: Resilient procedure volume in mature GLP-1 markets, rollout of new B2B2C commercial plan, growth of sales team despite expense reduction.

Q: Guideposts for US regulatory progress?

A: Completion of PMA submission in first half of 2025, then feedback from FDA.

Q: Momentum in first quarter trends?

A: Continuation of growth in mature GLP-1 markets and positive impact of new commercial plan pilots.

Q: Clinical trial design for combo therapy?

A: Prospective studies focusing on weight loss, lean mass gain, and GLP-1 adherence.

Q: B2B2C rollout status?

A: Piloted in key markets, to be rolled out as validated.

Q: Timing of France revenue contribution?

A: Not material in 2025, expected end 2025 into 2026.

Q: Gross margin improvement timeline?

A: Recovery to pre-Q4 2024 levels starting in Q1 2025, further expansion with France contribution and next-gen balloon.