Merit Medical Systems, Inc. (NASDAQ:MMSI) Q3 2023 Earnings Call Transcript

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Raul Parra: Yes, so I’ll start with the last part of the question, but 2024. You’re right, Mike. We’re not going to talk about that. We’ll give you our thoughts when we give our guidance sometime in February. And so I’ll kind of take that one off the table. But as far as China, that came in within the expectations of what we thought. Obviously, we’ll still have some sort of impact in the fourth quarter we talked about. So, I’d say generally, China came in at expectations.

Mike Matson: Okay, got it. And then just with the updates or the extension, I guess, of the foundation for growth targets. I know you’re not going to say what that is right now, but just in terms of the framework, in terms of giving guidance around sort of revenue growth, margin targets and cash flow targets, I mean it’s that kind of it should look similar to what you gave before, just with sort of newer numbers, essentially.

Fred Lampropoulos: Well, look. Hi, Mike. I appreciate the question. Here’s where we’re at. I’m just going to use a football analogy here. We are at a full sprint right now. We’ve got 15 yards to score a touchdown, and we are just not going to drop the ball. Right? We do not want to drop the ball. And so we’re going to punt on that response to the next quarter when we give you our updated guidance for 2024. But, look, we’ll talk about the framework and what we’re thinking there. Right now, we’re just really focused on finishing FFG. Look, we’re just super excited about how the business is done. I think you look at this quarter; we had almost 10% organic constant currency growth. We had strong gross margin expansion.

We leveraged operating expenses. It was just, honestly, a really perfect P&L and with really strong free cash flow. So we’re just going to continue to stay focused on the fourth quarter and finish off FFG, and then we’re excited to talk about what comes next.

Mike Matson: Okay. Understand. Thank you.

Fred Lampropoulos: All right, Mike.

Operator: Thank you. That concludes the question-and-answer session. At this time, I would like to turn the call back to Mr. Fred Lampropoulos for closing remarks.

Fred Lampropoulos: Well, listen, it’s a busy day. Everybody’s very busy. A lot of stuff going on with trade shows and a lot of people reporting. We appreciate you taking the time. Raul and I will be available for the next several hours to talk to you and clarify issues that you have interest in. We appreciate it. Thank you very much. And best wishes from snow in the mountains and colder temperatures in Salt Lake City, Utah. Good evening.

Operator: That does conclude our conference call for today. Thank you for your participation.

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