•	Total revenue of $19.9 million, down 10% year-over-year on a reported basis and 9% on a constant currency basis

•	Product revenue of $19.7 million, down 10% year-over-year on a reported and constant currency basis

–	U.S. product revenue of $17.2 million, down 11% year-over-year

–	Rest-of-world product revenue of $2.5 million, up 0.5% year-over-year on a reported basis and 4% on a constant currency basis

•	Royalty revenue of $0.2 million, up 9% year-over-year

•	Gross margin of 49%, flat year-over-year

•	Total revenue of $77.4 million, down 14% year-over-year on a reported basis, including a royalty settlement of $10.5 million in the third quarter of 2018, and 13% on a constant currency basis

•	Product revenue of $76.6 million, down 3% year-over-year on a reported basis and 2% on a constant currency basis

–	U.S. product revenue of $67.2 million, down 1% year-over-year

–	Rest-of-world product revenue of $9.5 million, down 10% year-over-year on a reported basis and 6% on a constant currency basis

•	Royalty revenue of $0.8 million, down 93% year-over-year, as a result of a one-time royalty settlement of $10.5 million in the third quarter of 2018; excluding the settlement, royalty revenue was up 18% year-over-year.

•	Gross margin of 47%, a decrease of 700 basis points year-over-year due to the royalty settlement in the third quarter of 2018; excluding the royalty settlement, gross margin was flat year-over-year.

•	Conformis expects product revenue growth for 2020 to be in the range of 3% - 6%

---

	Three Months Ended December 31,								Increase/(decrease)
($, in thousands)	2019				2018				$ Change				% Change			% Change
													(as reported)			(constant currency)
United States	$	17,225			$	19,410			$	(2,185	)		(11	)	%	(11	)	%
Rest of world		2,506				2,494				12			—		%	4		%
Product revenue		19,731				21,904				(2,173	)		(10	)	%	(10	)	%
Royalty revenue		158				145				13			9		%	9		%
Total revenue	$	19,889			$	22,049			$	(2,160	)		(10	)	%	(9	)	%

---

	Twelve Months Ended December 31,								Increase/(decrease)
($, in thousands)	2019				2018				$ Change				% Change			% Change
													(as reported)			(constant currency)
United States	$	67,151			$	68,062			$	(911	)		(1	)	%	(1	)	%
Rest of world	9,498				10,565				(1,067		)		(10	)	%	(6	)	%
Product revenue	76,649				78,627				(1,978		)		(3	)	%	(2	)	%
Royalty revenue	780				11,162				(10,382		)		(93	)	%	(93	)	%
Total revenue	$	77,429			$	89,789			$	(12,360	)		(14	)	%	(13	)	%

---

---

---

CONFORMIS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except share and per share data)
	Three Months Ended December 31,									Twelve Months Ended December 31,
	2019				2018					2019				2018
		(unaudited)								(unaudited)
Revenue
Product	$	19,731			$	21,904				$	76,649			$	78,627
Royalty	158				145					780				11,162
Total revenue	19,889				22,049					77,429				89,789
Cost of revenue	10,233				11,181					40,692				41,304
Gross profit	9,656				10,868					36,737				48,485
Operating expenses
Sales and marketing	7,283				9,682					28,514				38,955
Research and development	3,055				3,458					12,457				16,869
General and administrative	5,112				6,098					20,895				24,622
Goodwill impairment	—				—					—				6,731
Total operating expenses	15,450				19,238					61,866				87,177
Loss from operations	(5,794		)		(8,370		)			(25,129		)		(38,692		)
Other income and expenses
Interest income	74				184					330				659
Interest expense	(579		)		(1,067		)			(2,942		)		(3,356		)
Foreign currency exchange transaction (loss) income	876				(630		)			(692		)		(1,915		)
Total other (expenses) income, net	371				(1,513		)			(3,304		)		(4,612		)
Loss before income taxes	(5,423		)		(9,883		)			(28,433		)		(43,304		)
Income tax provision	10				(13		)			45				61
Net loss	$	(5,433	)		$	(9,870	)			$	(28,478	)		$	(43,365	)
Net loss per share
Basic and diluted	$	(0.08	)		$	(0.16	)			$	(0.44	)		$	(0.74	)
Weighted average common shares outstanding
Basic and diluted	65,520,222				60,848,875					64,122,455				58,886,333

---

CONFORMIS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share and per share data)
	December 31, 2019					December 31, 2018
Assets	(unaudited)
Current Assets
Cash and cash equivalents	$	26,394				$	16,380
Investments	—					7,245
Accounts receivable, net	11,066					13,244
Royalty receivable	165					145
Inventories	12,074					9,534
Prepaid expenses and other current assets	2,815					1,408
Total current assets	52,514					47,956
Property and equipment, net	13,356					14,439
Operating lease right-of-use assets	5,853					—
Other Assets
Restricted cash	462					462
Intangible assets, net	—					109
Other long-term assets	211					17
Total assets	$	72,396				$	62,983
Liabilities and stockholder's equity
Current liabilities
Accounts payable	$	6,920				$	3,445
Accrued expenses	7,135					7,930
Operating lease liabilities	1,469					—
Advance on research and development	2,331					—
Total current liabilities	17,855					11,375
Other long-term liabilities	1,500					616
Contract liability	12,000					—
Long-term debt, less debt issuance costs	19,623					14,792
Operating lease liabilities	5,071					—
Total liabilities	56,049					26,783
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.00001 par value:
Authorized: 5,000,000 shares authorized at December 31, 2019 and December 31, 2018; no shares issued and outstanding as of December 31, 2019 and December 31, 2018	—					—
Common stock, $0.00001 par value:
Authorized: 200,000,000 shares authorized at December 31, 2019 and December 31, 2018; 70,427,400 and 65,290,879 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively	1					1
Additional paid-in capital	521,356					513,336
Accumulated deficit	(504,145		)			(475,667		)
Accumulated other comprehensive loss	(865		)			(1,470		)
Total stockholders' equity	16,347					36,200
Total liabilities and stockholders' equity	$	72,396				$	62,983