01—Abstract
Summary
Summary of the 10-K filed February 18, 2025. Cited figures are marked; the original filing is the authoritative source.
Boston Scientific Corporation (BSX) reported strong financial performance for the fiscal year ended December 31, 2024.
Net sales increased significantly by 17.6% to $16.747 billiona, driven by robust commercial execution across all business units, particularly the Electrophysiology segment benefiting from the successful launch and rapid adoption of the Farapulse™ Pulsed Field Ablation System. The company also completed strategic acquisitions, including Axonics, Inc. and Silk Road Medical, Inc., which are expected to contribute to future growth. Profitability saw a substantial increase, with reported net income attributable to common stockholders reaching $1.853 billion ($1.25 per diluted share).
On an adjusted basis, which excludes certain charges and credits, net income was $3.725 billionb ($2.51 per diluted share). The company maintained a strong balance sheet and positive cash flow from operations, indicating effective management of resources and strategic investments. BSX continues to focus on innovation and expanding its global presence, positioning itself for continued growth in the medical technology sector.
02—Key points
Key Highlights
- Net sales grew 17.6% to $16.747 billion, driven by strong performance across all segments, especially Electrophysiology (Farapulse™ PFA System).
- Reported net income was $1.853 billion ($1.25 per diluted share), with adjusted net income of $3.725 billion ($2.51 per diluted share).
- Completed significant acquisitions of Axonics, Inc. and Silk Road Medical, Inc., bolstering the Urology and Peripheral Interventions portfolios, respectively.
- Invested $2.145 billion in Eurobonds to fund acquisitions and general corporate purposes, strengthening liquidity.
- Maintained a strong leverage ratio of 2.26x, well within covenant requirements, and ended the year with $414 million in unrestricted cash and cash equivalents.
- R&D expenses increased 14% to $1.615 billion, reflecting continued investment in product innovation and pipeline development.
- Gross profit margin was 68.6%, slightly lower than the prior year due to inventory charges and strategic investments, partially offset by higher-margin product sales.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Boston Scientific Corp kept $0.11.
- Revenue$16.75B100.0%
- Cost of revenue−$5.26B31.4%
- Gross profit$11.49B68.6%
- Operating costs−$8.89B53.1%
- Operating income$2.60B15.5%
- Interest, other & tax−$750.0M4.5%
- Net income$1.85B11.1%
Where FY2024 revenue went
$16.75B- SG&A: $5.98B, 36% of revenue
- Cost of revenue: $5.26B, 31% of revenue
- Other operating costs: $2.90B, 17% of revenue
- Net income: $1.85B, 11% of revenue
- Interest, other & tax: $750.0M, 4.5% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 18, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $16.75B$14.24B | +17.6% |
| Cost of Revenue | $5.26B$4.34B | +21.0% |
| Gross Profit | $11.49B$9.90B | +16.1% |
| SG&A Expenses | $5.98B$5.19B | +15.3% |
| Operating Expenses | $8.89B$7.55B | +17.7% |
| Operating Income | $2.60B$2.34B | +11.1% |
| Interest Expense | $305.00M$265.00M | +15.1% |
| Net Income | $1.85B$1.59B | +16.4% |
| EPS (Basic) | $1.26$1.08 | +16.7% |
| EPS (Diluted) | $1.25$1.07 | +16.8% |
| Shares Outstanding (Basic) | 1.47B1.45B | +1.3% |
| Shares Outstanding (Diluted) | 1.49B1.46B | +1.5% |
05—Questions
Frequently Asked Questions
What were the key drivers of Boston Scientific's revenue growth in 2024?
Boston Scientific's net sales increased by 17.6% to $16.747 billion in 2024. The primary drivers included strong commercial execution across all its business units. Notably, the Electrophysiology business saw significant growth due to the successful launch and rapid adoption of its Farapulse™ Pulsed Field Ablation System. Acquisitions completed in the period, such as Axonics, Inc. and Silk Road Medical, Inc., also contributed to revenue growth.
How did Boston Scientific manage its profitability and what is the significance of its adjusted net income?
Boston Scientific reported a net income of $1.853 billion ($1.25 per diluted share) for 2024. The company also reports adjusted net income, which excludes certain charges and credits like amortization, impairment charges, and acquisition-related expenses. In 2024, adjusted net income was $3.725 billion ($2.51 per diluted share). Adjusted figures are provided by management to offer a clearer view of underlying operational performance by removing the impact of non-recurring or non-operational items, allowing for a better comparison of performance over time.
What is Boston Scientific's M&A strategy and how did it impact the 2024 results?
Boston Scientific actively pursues strategic acquisitions to expand its product offerings and market reach. In 2024, key acquisitions included Axonics, Inc. (enhancing the Urology segment with sacral neuromodulation devices) and Silk Road Medical, Inc. (strengthening the Peripheral Interventions business with stroke prevention technology). These acquisitions required significant capital investment, with $4.640 billion paid for acquisitions in 2024, primarily for Axonics and Silk Road Medical, but are expected to drive future revenue growth and market share gains.
What is the company's financial position and liquidity outlook?
Boston Scientific maintains a strong financial position with $414 million in unrestricted cash and cash equivalents as of December 31, 2024. The company reported a leverage ratio of 2.26x, well within its covenant requirements, and has access to a $2.750 billion revolving credit facility. Operating activities generated substantial cash flow, and management believes existing resources and future cash generation are sufficient to fund operations, investments, and debt obligations for the foreseeable future.
06—Continue