Executive Summary

Q3 2024 delivered strong topline growth: net revenue $116.2M (+25% YoY), with SNM $92.3M (+25% YoY) and Bulkamid $23.8M (+25% YoY); gross margin expanded to 77.2% from 74.2% YoY .
GAAP profitability was dampened by one-time items: loss from operations ($6.3M) including ~$8M legal and acquisition-related costs; GAAP diluted EPS was ~$0.00 vs $0.08 in Q3 2023; adjusted EBITDA rose to $23.6M from $14.0M YoY .
Sequentially, revenue was modestly higher vs Q2 ($116.2M vs $114.6M), while gross margin ticked down (77.2% vs 77.8%); Q2 GAAP diluted EPS was $0.13 vs ~$0.00 in Q3 given one-time expenses .
Strategic backdrop: ongoing Boston Scientific merger process noted across 2024 earnings releases; post-quarter close, Boston Scientific announced completion on Nov. 15, 2024—an important catalyst shaping investor focus beyond near-term fundamentals .

What Went Well and What Went Wrong

What Went Well

Robust demand across portfolio: SNM and Bulkamid both grew 25% YoY, driven by higher utilization at existing customers and onboarding of new accounts .
Margin expansion and operating leverage: gross margin improved to 77.2% (vs. 74.2% YoY); adjusted EBITDA increased to $23.6M from $14.0M YoY, reflecting scale benefits and cost control .
Management confidence and market expansion narrative: “Our commitment to innovation, quality, direct-to-consumer advertising and providing strong clinical support continues to expand the market...” — CEO Raymond W. Cohen .

What Went Wrong

One-time items impacted GAAP earnings: loss from operations ($6.3M) included ~$8M of legal and acquisition-related costs; GAAP diluted EPS ~$0.00 vs $0.08 YOY .
OpEx intensity: total operating expenses rose to $95.9M (vs. $69.8M YoY), reflecting higher R&D, G&A, sales & marketing, and transaction-related items .
Limited formal forward guidance amid pending merger; investors lack explicit revenue/margin outlook from management in Q3 materials .

Financial Results

Consolidated Performance vs Prior Quarters

Metric	Q1 2024	Q2 2024	Q3 2024
Net Revenue ($USD Millions)	$91.409	$114.565	$116.193
Gross Margin (%)	75.8%	77.8%	77.2%
Loss from Operations / Operating Income ($USD Millions)	($19.179)	$3.681	($6.268)
Net (Loss) Income ($USD Millions)	($19.112)	$6.899	($0.021)
Diluted EPS (GAAP) ($USD)	($0.38)	$0.13	($0.00)
Adjusted EBITDA ($USD Millions)	$2.972	$23.436	$23.556

Segment Revenue Breakdown

Segment	Q1 2024 ($M)	Q2 2024 ($M)	Q3 2024 ($M)
SNM Total	$71.679	$91.215	$92.349
Bulkamid Total	$19.730	$23.350	$23.844
Total Net Revenue	$91.409	$114.565	$116.193

Product and Region KPIs

KPI	Q1 2024	Q2 2024	Q3 2024
SNM U.S. ($M)	$69.840	$89.076	$90.072
SNM International ($M)	$1.839	$2.139	$2.277
Bulkamid U.S. ($M)	$15.219	$18.306	$19.050
Bulkamid International ($M)	$4.511	$5.044	$4.794
Cash, ST Investments & Restricted Cash ($M)	$349	$362	$367

Guidance Changes

Axonics did not issue formal revenue, margin, OpEx, OI&E, or tax guidance in Q3 2024 materials (consistent with pending Boston Scientific merger).

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY/Q4 2024	None provided	None provided	Maintained: No formal guidance

Earnings Call Themes & Trends

Note: The Q3 2024 earnings call transcript was not available in the document catalog. We searched for AXNX earnings call transcripts but could not retrieve a primary-source transcript to read in full before synthesis. We verified event timing externally .

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q1 2024)	Current Period (Q3 2024)	Trend
Market Expansion & DTC Advertising	Executing at high level; record revenue/margins; confidence in DTC and clinical support	Market expansion narrative; higher utilization and share of wallet; DTC support	Continued expansion via innovation, quality, DTC; onboarding new accounts	Sustained positive narrative
Manufacturing Yields / GM	Record gross margin from higher manufacturing yields	Record gross margin 75.8% from higher yields	GM 77.2%, continuing strength	Stable-high margins
Boston Scientific Merger	Confidence in benefits; noted in release	Noted; ceased new equity grants pending merger	“Global impact…as part of Boston Scientific”	Integration focus increases
Legal/Regulatory	—	Acquisition-related costs and adjustments	One-time litigation expense and acquisition-related costs (~$8M)	Elevated non-GAAP adjustments
Geographic Mix	U.S.-led growth across SNM and Bulkamid	U.S.-led growth	U.S.-led growth persists	Consistent

Management Commentary

“Axonics continued to execute at a high level in the third quarter, generating revenue growth of 25% year over year… driven by higher utilization at existing customers and the onboarding of new accounts.” — CEO Raymond W. Cohen .
“Our commitment to innovation, quality, direct-to-consumer advertising and providing strong clinical support continues to expand the market for life-changing incontinence therapies…” — CEO Raymond W. Cohen .
“We look forward to the global impact the Axonics portfolio can make as part of Boston Scientific…” — CEO Raymond W. Cohen .

Q&A Highlights

We attempted to locate and read the full Q3 2024 earnings call transcript but could not retrieve it from the document catalog. External sites confirm the call timing but do not provide a primary-source transcript accessible for full review. Consequently, Q&A themes and clarifications cannot be summarized without risking accuracy .

Estimates Context

S&P Global consensus estimates could not be retrieved due to a CIQ mapping issue for AXNX; therefore, we cannot anchor estimate comparisons on SPGI for Q3 2024. Consensus unavailable via S&P Global (attempted, mapping missing).
Third-party sources indicate beats on revenue and non-GAAP EPS: revenue $116.19M vs $113.36M consensus; EPS $0.16 vs $0.11 consensus—contextual only, not SPGI-sourced .

Metric	Q3 2024 Actual	Consensus (S&P Global)	Note
Revenue	$116.193M	Unavailable via S&P Global	SPGI mapping issue (consensus unavailable)
Diluted EPS (GAAP)	($0.00)	Unavailable via S&P Global	SPGI mapping issue (consensus unavailable)

Key Takeaways for Investors

Durable growth engine: 25% YoY growth across SNM and Bulkamid with strong U.S. demand and account onboarding; supports sustained share gains in underpenetrated incontinence markets .
Margin quality intact: gross margin 77.2% remains near cycle highs; adjusted EBITDA strength ($23.6M) underscores operating leverage at scale .
GAAP optics obscured by one-time items: Q3 GAAP EPS near zero reflects ~$8M legal/acquisition costs, not deterioration in core demand; monitor normalization of non-core expenses in coming periods .
Liquidity headroom: $367M in cash, ST investments and restricted cash provides flexibility through merger integration and continued commercial investment .
Limited guidance amid M&A: absent formal guidance, near-term stock drivers shift to merger closure news flow and post-integration updates rather than quarterly targets .
Segment momentum: both SNM and Bulkamid posting consistent growth suggests balanced portfolio strength and cross-sell opportunities .
Corporate event catalyst: Boston Scientific’s acquisition completion (Nov. 15, 2024) likely dictates stock trajectory and re-rating dynamics; focus on integration execution and combined portfolio scale .

Notes on source coverage and methodology:

We read in full the Q3 2024 8-K press release and financial exhibits, along with Q2 and Q1 2024 8-K releases to build multi-period comparisons .
We searched for Q3 2024 earnings call transcript but could not retrieve a primary-source transcript in the catalog; external confirmations of call timing are cited for completeness .
S&P Global estimates could not be fetched due to a CIQ mapping issue; consensus comparisons to SPGI are therefore unavailable this quarter. Third-party consensus references are provided as context with explicit non-SPGI disclosure .

Axonics, Inc. (AXNX)·Q3 2024 Earnings Summary