Allurion Technologies Inc. Q1 FY2025 earnings call

• New commercial plan focused on key geographies with B2B2C direct sales model, showing over 40% quarter-over-quarter and year-over-year growth in pilot clinics. - Progress on FDA approval with completed pre-PMA meeting and expectation to complete PMA submission by end of June. - Aim to achieve profitability for ex-U.S. business by end of 2025. - Scaling AI product platform and leveraging new business models. - Resuming commercialization in France, with reengagement of clinics and retraining of providers. - Combination of Allurion program with GLP-1 therapy, including details of a prospective trial with semaglutide in Europe.

First quarter revenue was $5.6 million. Gross profit was $4.2 million, which is 75% of revenue. Sales and marketing expenses were $3.6 million, R&D expenses were $2.6 million, and general and administrative expenses were $5.2 million. Adjusted net operating loss was $5.9 million, narrowing by 48% compared to the prior year. Gross margin expanded to 75% from 73% in the prior year.

• Maintaining guidance of revenues approximately $3 million with operating expenses reduced by approximately 50% compared to 2024. - Expecting revenue to ramp as B2B2C model expands and enhanced sales team onboards. - Anticipating revenue growth in the second half of 2025 as sales reps onboard and pilot strategies roll out.

• Actual results may differ materially from forward-looking statements due to certain risks and uncertainties described in SEC filings.

Q: Can you give indication of regional trends, especially with new marketing strategy?

A: Regionally, following B2B2C strategy, mature GLP-1 markets create tailwinds and direct sales force expansion is underway with expected revenue ramp.

Q: About the trial with GLP-1s, when to expect data?

A: Enrollment to begin this year, latter half, with one-year follow-up.

Q: Details on pre-PMA meeting and control group analysis?

A: FDA was receptive to alternative methods for analyzing control group data, which will strengthen the PMA submission.

Q: Current algorithm of centers with Allurion Balloon and VCS, and registry data?

A: Organic adoption of combination with GLP-1s is happening, and Virtual Care Suite allows tracking of treatment regimens.

Q: Procedure growth in quarter and trends in Q2?

A: Procedure growth is stable, with no material impact from tariffs on costs or procedures.

Q: When to expect Virtual Care Suite revenues to be material?

A: U.S. is likely bigger contributor, but not expected to be material to top line this year or early next year.