Allurion Technologies Earnings Call: Transition and Growth

Allurion Technologies, Inc. ((ALUR)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Allurion Technologies, Inc. paints a picture of a company in transition. The sentiment expressed during the call was cautiously optimistic, highlighting significant strides toward efficiency and profitability. The company has made notable improvements in gross margins and successfully implemented a new sales model. However, these positive developments are counterbalanced by a decline in revenue due to the temporary suspension of sales in France and ongoing operating losses.

Reduction in Operating Expenses

Allurion Technologies reported a significant reduction in operating expenses, with a 45% decrease compared to the prior year. This reduction reflects the company’s increased efficiency and progress toward achieving profitability, marking a crucial step in its financial strategy.

Expansion of Gross Margin

The company achieved an expansion in its gross margin, which grew to 75% from 73% in the prior year and 45% in the previous quarter. This improvement is attributed to enhanced manufacturing efficiencies, underscoring the company’s operational advancements.

Successful B2B2C Model Implementation

Allurion’s B2B2C sales model has shown remarkable success, with over 40% growth quarter-over-quarter and year-over-year in clinics across Europe. This growth highlights the effectiveness of the new sales strategy in expanding the company’s market presence.

FDA Engagement and Approval Path

The company completed a pre-PMA meeting with the FDA and expects to complete the PMA submission by the end of June. The feedback received was positive, particularly regarding additional analyses, paving the way for potential future approvals.

Progress in France

Efforts to reengage and retrain clinics in France are underway, with plans to resume commercialization in the second half of the year. This strategic move aims to recover lost revenue due to the temporary suspension of sales in the region.

Strong Cash Position

Allurion ended the first quarter with a robust cash position of $20 million. This financial cushion provides the company with a runway to achieve FDA approval and move closer to profitability.

Revenue Decline

Revenue for the first quarter of 2025 was reported at $5.6 million, a decline from $9.4 million in the same period of 2024. This decrease is primarily attributed to the temporary suspension of sales in France, highlighting a significant challenge for the company.

Continued Operating Loss

Despite improvements, the company reported a loss from operations of $7.3 million for the first quarter, compared to $11.4 million in 2024. This ongoing financial challenge underscores the need for continued strategic adjustments.

Forward-Looking Guidance

Allurion Technologies outlined its strategic initiatives for 2025, focusing on a new commercial strategy targeting key geographies, gaining FDA approval for the Allurion Balloon, and achieving profitability for its ex-U.S. business. The company also plans to scale its AI product platform and resume commercialization in France. Additionally, Allurion is integrating GLP-1 therapies with its products, supported by studies showing significant health benefits. The company maintains its revenue guidance of approximately $3 million and aims for a 50% reduction in operating expenses compared to 2024.

In summary, Allurion Technologies is navigating a period of transition with a focus on improving efficiency and profitability. While the company faces challenges such as revenue decline and operating losses, its strategic initiatives and strong cash position provide a foundation for future growth. The earnings call reflects a cautiously optimistic outlook, with significant efforts underway to achieve key milestones in 2025.