Executive Summary

Record quarter: revenue $114.6M (+23% YoY), gross margin 77.8%, adjusted EBITDA $23.4M, and net income $6.9M; drivers were higher utilization at existing customers and onboarding of new accounts .
Segment strength: Sacral neuromodulation $91.2M (+23% YoY) and Bulkamid $23.4M (+25% YoY) maintained broad-based momentum .
Sequential inflection: Q2 delivered positive GAAP net income and diluted EPS of $0.13 versus Q1 loss and -$0.38 EPS, aided by gross margin expansion from higher manufacturing yields and operating leverage .
Guidance: No explicit forward guidance provided; management emphasized continued confidence and highlighted pending Boston Scientific merger context and operational execution focus .
Estimates context: S&P Global consensus data unavailable; third-party aggregators indicated a beat vs consensus (EPS +$0.03 vs $0.10; revenue +$1.74M vs $112.83M) which likely supported a constructive reaction narrative, pending market-data verification .

What Went Well and What Went Wrong

What Went Well

“Generating record revenue and setting new high-water marks for gross margin and adjusted EBITDA margin” underscored operational discipline and manufacturing yield improvements .
Broad-based growth across both SNM (+23% YoY) and Bulkamid (+25% YoY) demonstrated healthy category penetration and account expansion .
Return to profitability: net income $6.9M vs prior-year net loss of $7.3M; diluted EPS $0.13, reflecting improved gross margin and operating leverage .

Management quotes

“Revenue growth of 23% year over year was driven by higher utilization at existing customers and the onboarding of new accounts.” — Raymond W. Cohen, CEO .
“Axonics also generated record net income in the second quarter, a result of gross margin expansion from higher manufacturing yields and continued operating leverage.” — Raymond W. Cohen .
“We remain confident that our commitment to innovation, quality, direct-to-consumer advertising and providing strong clinical support will continue to expand the sacral neuromodulation market.” — Raymond W. Cohen .

What Went Wrong

Operating expenses of $85.5M rose versus $82.3M prior year, reflecting higher R&D (+$3.8M YoY) and continued investment, partly offsetting margin gains .
Continued non-GAAP adjustments, including acquisition-related costs ($2.652M) and cash compensation in lieu of equity due to pending merger ($5.591M), indicating ongoing transaction-related noise .
Working capital intensity increased: inventory rose to $105.4M from $79.9M at year-end, and accounts receivable remained elevated at $57.2M, requiring disciplined cash conversion .

Financial Results

Core P&L and Margins (Sequential trend)

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($M)	$109.7	$91.4	$114.6
Gross Margin (%)	75.4%	75.8%	77.8%
Net Income ($M)	$6.6	-$19.1	$6.9
Diluted EPS ($)	$0.13	-$0.38	$0.13
Adjusted EBITDA ($M)	$18.9	$3.0	$23.4

Year-over-Year (Q2 2024 vs Q2 2023) and Segment Mix

Metric	Q2 2023	Q2 2024
Revenue ($M)	$92.9	$114.6
Gross Margin (%)	75.6%	77.8%
Net Income ($M)	-$7.3	$6.9
Diluted EPS ($)	-$0.15	$0.13

Segment ($M)	Q2 2023	Q2 2024
SNM – U.S.	$72.2	$89.1
SNM – International	$2.0	$2.1
SNM – Total	$74.2	$91.2
Bulkamid – U.S.	$14.8	$18.3
Bulkamid – International	$3.9	$5.0
Bulkamid – Total	$18.7	$23.4
Total Net Revenue	$92.9	$114.6

KPIs and Balance Sheet Highlights

KPI	Q4 2023	Q1 2024	Q2 2024
Cash & Short-term Investments + Restricted Cash ($M)	$358	$349	$362
Accounts Receivable ($M)	$57.2	$50.5	$57.2
Inventory ($M)	$79.9	$93.2	$105.4
Total Assets ($M)	$719.9	$715.6	$747.3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	Not disclosed	Not disclosed	Maintained “no formal guidance” posture tied to pending Boston Scientific merger context .
Gross Margin	FY/Quarter	Not disclosed	Not disclosed	N/A .
OpEx	FY/Quarter	Not disclosed	Not disclosed	N/A; Q2 actual OpEx $85.5M provided .
Tax Rate	FY/Quarter	Not disclosed	Not disclosed	N/A .
Segment Guidance	FY/Quarter	Not disclosed	Not disclosed	N/A .

Note: Company did not provide explicit forward guidance in Q2 materials; management reiterated confidence and strategic priorities in context of the pending Boston Scientific merger .

Earnings Call Themes & Trends

Transcript access: The Q2 2024 earnings call transcript was not available in our document catalog or via accessible public transcript sources during this review window. The thematic tracking below reflects prepared remarks and disclosures across recent quarters.

Topic	Previous Mentions (Q4 2023)	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Product performance (SNM & Bulkamid)	Strong growth; SNM $88.5M, Bulkamid $21.2M in Q4 .	SNM $71.7M (+30% YoY), Bulkamid $19.7M (+27% YoY) .	SNM $91.2M (+23% YoY), Bulkamid $23.4M (+25% YoY) .	Positive, broad-based momentum.
Manufacturing yields, gross margin	GM 75.4% Q4; strong operational execution .	Record GM 75.8% tied to higher yields .	Record GM 77.8%; further yield improvements .	Improving operational efficiency.
DTC advertising & clinical support	Emphasized clinician preference; market expansion .	Emphasized DTC and clinical support drive expansion .	Reiterated DTC + clinical support as core growth drivers .	Consistent strategic lever.
Legal/regulatory	Medtronic litigation cited in risk disclosures .	Merger-related and litigation risks cited .	Ongoing risk disclosures re: merger and litigation .	Ongoing monitoring.
Merger with Boston Scientific	Proxy and transaction disclosures .	Pending merger; operational adjustments (equity grants pause) .	Continued merger context and confidence in integration benefits .	Advancing toward close.

Management Commentary

“Revenue growth of 23% year over year was driven by higher utilization at existing customers and the onboarding of new accounts.” — Raymond W. Cohen, CEO .
“Axonics also generated record net income in the second quarter, a result of gross margin expansion from higher manufacturing yields and continued operating leverage.” — Raymond W. Cohen .
“We remain confident that our commitment to innovation, quality, direct-to-consumer advertising and providing strong clinical support will continue to expand the sacral neuromodulation market…” — Raymond W. Cohen .
Q1 context: “Gross margin expanded to 75.8%, a new record, as we benefited from higher yields… Our growth was driven by higher utilization and share of wallet…” — Raymond W. Cohen .

Q&A Highlights

The Q2 2024 earnings call transcript was not available; therefore, specific Q&A exchanges, guidance clarifications, and tone nuances cannot be cited at this time.
Prepared remarks emphasize utilization, account onboarding, manufacturing yields, and confidence amid pending merger .

Estimates Context

S&P Global consensus estimates were unavailable for AXNX due to data mapping constraints at the time of retrieval. Where possible, we anchor comparisons on S&P; in this case, we note unavailability.
Third-party aggregator comparisons:
- MarketBeat: Consensus EPS $0.10 vs actual $0.13; consensus revenue $112.83M vs actual $114.57M; beat of +$0.03 EPS and +$1.74M revenue .
- Public.com: Listed Q2 2024 EPS estimate $0.13 vs actual $0.13 (meet) .

Metric	Consensus (Source)	Actual	Surprise
EPS ($)	$0.10 (MarketBeat)	$0.13	+$0.03
Revenue ($M)	$112.83 (MarketBeat)	$114.57	+$1.74
EPS ($)	$0.13 (Public.com)	$0.13	0.00

Note: S&P Global consensus unavailable for this period.

Key Takeaways for Investors

Sequential inflection to profitability: Q2 diluted EPS $0.13 and net income $6.9M driven by margin gains and leverage; watch sustainability into 2H amid transaction-related costs .
Durable growth across both SNM and Bulkamid with continued U.S. strength; international contributions remain modest but rising .
Operational excellence: manufacturing yields supported record gross margin (77.8%); continued focus on quality and scale can extend margin trajectory .
Working capital intensity is increasing (inventory build); monitor cash conversion and inventory management as scale expands .
Absence of formal guidance: pending Boston Scientific merger keeps focus on execution rather than outlook; track regulatory/legal developments and transaction milestones .
Non-GAAP adjustments tied to merger (cash compensation in lieu of equity, acquisition costs) will create noise; core profitability trend best assessed via gross margin and adjusted EBITDA progression .
Near-term trading lens: reported beats vs several public consensus sources and record margin narrative are supportive; confirmation via market reaction and any merger updates can be catalysts .

Axonics, Inc. (AXNX)·Q2 2024 Earnings Summary