Vericel (VCEL, Financial) reported first quarter revenue of $52.6 million, falling short of the expected $53.86 million. Despite this, the company recorded its highest ever first quarter revenue from its MACI product, contributing to overall strong company performance. Vericel’s CEO, Nick Colangelo, highlighted the solid initiation to the year and the robust metrics following the MACI Arthro launch. Colangelo expressed optimism, anticipating substantial revenue and profit growth in the second quarter and for the remainder of the year. He conveyed confidence in the company's positioning for continued success into 2025 and beyond.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Vericel Corp (VCEL, Financial) is $63.25 with a high estimate of $72.00 and a low estimate of $51.00. The average target implies an upside of 56.29% from the current price of $40.47. More detailed estimate data can be found on the Vericel Corp (VCEL) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Vericel Corp's (VCEL, Financial) average brokerage recommendation is currently 1.5, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vericel Corp (VCEL, Financial) in one year is $48.74, suggesting a upside of 20.43% from the current price of $40.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vericel Corp (VCEL) Summary page.
VCEL Key Business Developments
Release Date: February 27, 2025
- Total Revenue: Over $237 million, representing 20% growth for the year.
- 4th Quarter Revenue: Record $75.4 million.
- MACI Revenue: $197.3 million for the year, with 4th quarter revenue of $68.3 million, growing 21% year-over-year.
- Burn Care Revenue: $39.9 million for the year, with 22% growth.
- Gross Margin: 73% for the year, with a 4th quarter gross margin of 78%.
- Net Income: $10.4 million for the year, or $0.20 per share, compared to a net loss in 2023.
- 4th Quarter Net Income: $19.8 million, or $0.38 per share.
- Adjusted EBITDA: $53.4 million for the year, representing 23% of net revenue.
- Operating Cash Flow: $58.2 million for the year.
- Cash and Investments: Approximately $167 million at year-end, with no debt.
- 2025 Revenue Guidance: Expected growth of 20% to 23%.
- 2025 Gross Margin Guidance: 73% to 74%.
- 2025 Adjusted EBITDA Margin Guidance: 25% to 26%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vericel Corp (VCEL, Financial) achieved a 20% total revenue growth in 2024, reaching over $237 million.
- The company reported record quarterly revenue of over $75 million in the fourth quarter, with a gross margin of 78%.
- MACI's fourth-quarter revenue grew by 21% year-over-year and 53% sequentially, driven by strong fundamentals and increased surgeon engagement.
- The Burn Care franchise saw a 22% revenue increase in 2024, with Nexobrid hospital orders rising by 42% in the fourth quarter.
- Vericel Corp (VCEL) achieved GAAP profitability for the year, with net income of $10.4 million, and operating cash flow increased to nearly $60 million.
Negative Points
- Epicel revenue was below recent run rates in the fourth quarter due to fewer patient treatments and grafts per patient.
- Operating expenses increased to $167.6 million in 2024, primarily due to development and commercial launch activities.
- The company anticipates a significant decrease in capital expenditures in 2025, which may impact future growth investments.
- The guidance for 2025 includes a potential impact on margins due to the completion of the new facility, which will add $10 million in incremental expenses.
- The MACI Arthro launch is still in its early stages, and significant contributions to revenue growth are not yet factored into the 2025 guidance.
