Executive Summary

Q2 2024 revenue was $11.8M, up 25% sequentially from Q1’s $9.4M, with gross margin at 76%; diluted EPS was $(0.05) driven by sizable fair‑value gains offsetting an operating loss .
Management cut FY 2024 revenue guidance to $40–$45M and procedural volume growth to 10–15% due to the French regulator (ANSM) suspending balloon sales, more conservative inventory stocking, and macro headwinds; prior guidance was $60–$65M revenue and 20% volume growth .
Operational execution improved: sales & marketing and R&D expenses declined materially YoY; procedure volume set a quarterly record (>10,000 placements) for the second straight quarter .
Balance sheet bolstered by ~$22M gross proceeds from July’s public offering and concurrent private placement, improving runway toward management’s plan to achieve profitability by end of next year; Q2 cash was $19.3M (pre-offering) .

What Went Well and What Went Wrong

What Went Well

Sequential top‑line acceleration: revenue rose to $11.8M (+$2.4M, +25% q/q) on record procedure volume, with gross margin steady (76%) .
Leaner cost base: sales & marketing fell to $6.7M (−$3.6M YoY) and R&D to $4.3M (−$2.3M YoY), reflecting 4Q23 restructuring and lower AUDACITY trial spend .
Product and platform advances: launched GLP‑1 support in Coach Iris and introduced the U.S. Virtual Care Suite, reinforcing the AI‑enabled weight‑management stack; “we now believe we have the cash runway to execute through significant milestones… working toward a plan to achieve profitability by the end of next year.” — CEO Dr. Shantanu Gaur .

What Went Wrong

Guidance reset: FY24 revenue cut to $40–$45M and volume growth to 10–15% on France suspension (ANSM), stocking conservatism, and macro headwinds; prior revenue guide was $60–$65M and 20% volume growth .
Geographic disruption: France (~mid‑teens % of recent business per call highlights) halted, creating near‑term growth pressure despite management’s remediation plan and disagreement with ANSM’s decision .
Financing costs and cash burn: G&A rose to $7.3M (+$0.9M YoY) on $1.9M financing costs; cash burn during Q2 was ~$(10.4)M, raising focus on runway and capital structure until offering proceeds arrived .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$8.235	$9.386	$11.766
Gross Margin %	78%	73%	76%
Operating Income (Loss) ($USD Millions)	$(25.738)	$(11.390)	$(9.346)
Net Income ($USD Millions)	$(19.180)	$5.586	$(2.162)
Diluted EPS ($USD)	$(0.40)	$0.11	$(0.05)

Operating Expenses ($USD Millions)	Q4 2023	Q1 2024	Q2 2024
Sales & Marketing	$10.730	$6.145	$6.718
Research & Development	$6.071	$5.725	$4.310
General & Administrative	$15.367	$6.386	$7.311
Total Operating Expenses	$32.168	$18.256	$18.339

Balance Sheet & Liquidity	Dec 31, 2023	Mar 31, 2024	Jun 30, 2024
Cash & Cash Equivalents ($USD Millions)	$38.037	$29.682	$19.258

Notes:

Q2 YoY revenue: $11.766M vs $12.960M (Q2’23), −9.2% YoY .
Record procedure volume (>10,000 placements) second straight quarter .

Segment breakdown: Not applicable; company reports a single program/platform focus in releases .

KPIs

KPI	Q4 2023	Q1 2024	Q2 2024
Procedure Volume YoY Growth (%)	n/a	12%	12%
Procedure Placements (#)	n/a	n/a	>10,000
Cash Burn ($USD Millions)	n/a	$8.4	~$10.4
Coach Iris GLP‑1 Support	No explicit	VCS launched US	GLP‑1 support launched

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2024	$60–$65M	$40–$45M	Lowered
Procedural Volume Growth (%)	FY 2024	20%	10–15%	Lowered
Gross Margin (%)	FY 2024	77–79%	n/a (not reiterated)	n/a
Cash Burn ($USD Millions)	FY 2024	~$(30)	n/a (not reiterated)	n/a

Management cited the ANSM France suspension, inventory stocking conservatism, and macro headwinds as the drivers of the cut, while emphasizing remediation efforts and intent to resume commercialization in France .

Earnings Call Themes & Trends

Topic	Q4 2023 (prior)	Q1 2024 (prior)	Q2 2024 (current)	Trend
AI/technology initiatives	Iris AI noted in platform description	Launch of Virtual Care Suite (VCS) in U.S.	Added GLP‑1 support to Coach Iris; U.S. VCS launch referenced	Expanding AI features and commercialization
Supply chain/macro	Macro conditions affected 4Q’23 demand	Macro headwinds, lower reorder rates, inventory adjustments	Macro/stocking headwinds to slow 2H growth	Persistent headwinds; operational efficiency improving
Regulatory/legal	n/a	n/a	France ANSM suspended balloon sales; remediation plan underway	New regulatory risk introduced
Product performance	Robust demand; 2023 volume +30% YoY	Highest quarterly volume to date; sequential +22%	Record placements (>10k) for second straight quarter	Strong underlying demand despite region-specific issues
Regional trends	First UK NHS reimbursed patients	First NHS patient treated in UK	France withdrawal pending remediation	Mixed: UK progress, France disruption
R&D execution (AUDACITY)	Enrollment completed ahead of schedule	Lower trial spend	Last patient treated with second balloon; trial completion on track for YE	On track toward PMA milestones

Management Commentary

“After restructuring our business at the end of 2023, the entire Allurion team executed at a high level and posted a second consecutive quarter of sequential revenue growth, record procedure volume, and significant improvements in operating income… we now believe we have the cash runway to execute through significant milestones and are working toward a plan to achieve profitability by the end of next year.” — Dr. Shantanu Gaur, CEO .
“We launched GLP‑1 drug support for Coach Iris… advancing our vision to create a verticalized, conversational AI agent for weight loss that any patient can use.” — Dr. Gaur .
“We believe the differentiated approach of the Allurion Program… positions us well to not only compete against, but also be complimentary to, other players in the space. With the launch of the VCS in the United States…” — Dr. Gaur (Q1 call/PR) .
On ANSM: “While we disagree with the decision from ANSM… we have already begun executing against a remediation plan… changes to our advertising, patient follow‑up, and physician training.” — Dr. Gaur .

Q&A Highlights

Impact of France suspension: Management detailed the remediation plan (advertising, follow‑up, physician training) and intent to resume commercialization as soon as possible; reiterated safety profile and global complication rates in line with published literature .
Macro and regional mix: Commentary pointed to Latin America and Asia Pacific macro headwinds contributing to slower procedure growth and conservative inventory stocking in 2H .
Cost structure and G&A: CFO/management noted G&A rose on $1.9M financing costs tied to debt refinancing and equity offering; excluding financing costs, G&A would have been $0.9M lower YoY .
Cash burn/runway: Cash burn ~$(10.4)M during Q2; runway strengthened post July offering and private placement .

Estimates Context

S&P Global/Capital IQ consensus for Q2 2024 EPS and revenue was unavailable at time of retrieval due to access limits. Values retrieved from S&P Global were unavailable.
Without Wall Street consensus, we cannot classify beats/misses for Q2; future revisions likely lower FY24 revenue and volume trajectories following France suspension and macro commentary .

Key Takeaways for Investors

Revenue trajectory improved sequentially, but FY24 top‑line reset reflects France disruption and macro/stocking headwinds; monitor remediation progress and timing of French commercialization resumption .
Cost discipline is durable: S&M and R&D down meaningfully YoY; operating losses narrowing even before fair‑value gains; track opex cadence versus volume recovery .
Platform differentiation: Coach Iris (GLP‑1 support) and VCS deepen moat; U.S. VCS commercialization could diversify revenue beyond balloons over time .
Capital structure and liquidity: July offering (~$17–$22M gross) and April convertible notes refinancing simplify and extend runway; watch financing costs and RIFA economics (royalty rate increases) .
Near‑term catalysts: ANSM remediation outcome, AUDACITY trial completion by YE (supports PMA path), pace of VCS adoption, regional reorder normalization .
Risk-reward hinges on regulatory resolution and execution in non‑France markets; strong demand signals (record placements) support medium‑term thesis if France returns and digital SaaS gains traction .

Sources: Q2 2024 8‑K and press release (Ex. 99.1) ; Q1 2024 8‑K and press release (Ex. 99.1) ; Q4 2023 8‑K and press release (Ex. 99.1) ; July 1, 2024 offering 8‑K ; ANSM suspension 8‑K (Aug 7, 2024) ; Earnings call references .

ALLURION TECHNOLOGIES, INC. (ALUR)·Q2 2024 Earnings Summary