What happened
Shares of Treace Medical Concepts (TMCI -0.19%) were up 21% as of 3 p.m. EST Wednesday afternoon. The orthopedic medical device company's shares rose after it reported fourth-quarter earnings after the markets closed on Tuesday.
So what
Treace makes Lapiplasty surgery kits, which orthopedic surgeons use to perform minimally invasive surgery on bunions. Sales of Treace's kits have been brisk, so revenue is up. The company reported Q4 revenue of $49.8 million, up 49% year over year and up 51% sequentially. The company's full-year revenue was up 50% to $141.8 million.
The healthcare company also trimmed its losses, at least in the quarter. It lost $4.4 million, or $0.08 in earnings per share (EPS) in the quarter after losing $6.6 million, or an EPS loss of $0.12 in the same period a year ago. For the year, the company said it lost $42.8 million, or $0.77 in EPS loss compared to a loss of $20.7 million and EPS loss of $0.43 in 2021.
Now what
The biggest takeaway from the company's earnings report is that its base of surgeons who perform Lapiplasty has expanded. Company founder and CEO John T. Treace said in the release:
Nearly 1-in-4 of the estimated 10,000 U.S. surgeons who perform bunion surgery used Lapiplasty in 2022, which demonstrates the growing adoption of our differentiated technologies.
According to company research, the market for the company's Lapiplasty systems has the potential for $5 billion in peak sales with 65 million Americans living with bunions. In 2023, the company said it expects revenue to be between $187 million to $193 million, showing growth of 32% to 36% over 2022 revenue.