FNA - Paragon surges 11% as FY22 outlook raised despite forex impact

Paragon 28 ( NYSE: FNA ) stock rose ~11% on Friday after Q3 revenue beat estimates and the company raised its FY22 outlook.

Net loss widened to -$9.72M, compared to -$5.1M in Q3 2021.

Q3 net revenue grew +28.33% Y/Y to $46M.

U.S. quarterly revenue increased +25% Y/Y to $40M. The company said growth was mainly due to sales force productivity gains resulting from new product launches, an expanded customer base, and continued medical education momentum.

International net revenue grew +52% Y/Y to $6M, but the company noted that foreign currency headwinds reduced quarterly international net revenue and net revenue growth by about $0.8M and 19 percentage points, respectively, Y/Y. Growth was driven primarily by Australia, South Africa, Spain, and the U.K.

Adjusted EBITDA was -$2.7M, compared to -$1M in Q3 2021.

Outlook :

Paragon increased its FY22 revenue outlook to $179.5M ( prior outlook during Q2 results was $176M), consensus $177.39M.

The company said the guidance includes the impact of stronger foreign currency headwinds in both Q3 and Q4, which are now expected to reduce 2022 net revenue and net revenue growth by about $2.4M and 1.6 percentage points, respectively.

Paragon noted that the increased 2022 annual net revenue guidance includes Q4 outlook of $49.6M (+16% Y/Y); consensus for Q4 $49.62M.

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