Silk Road Medical, Inc. (Nasdaq: SILK), a company focused on
reducing the risk of stroke and its devastating impact, today
reported financial results for the three months ended March 31,
2024.
“Our team delivered a strong start to 2024 as we deepened
relationships with the physicians we serve and continued broadening
our patient impact,” said Chas McKhann, CEO of Silk Road Medical.
“In the first quarter, we made meaningful commercial progress while
also taking steps toward sustainable profitability. We enter the
second quarter feeling energized by TCAR’s outstanding value
proposition for physicians and patients and in our opportunity to
drive strong, sustainable growth as a business.”
First Quarter 2024 Financial Results
Revenue for the first quarter of 2024 was $48.5 million, an
increase of $8.4 million or 21%, compared to the first quarter of
2023. Growth was driven primarily by increased TCAR adoption.
Gross profit for the first quarter of 2024 was $36.5 million
compared to $27.6 million for the first quarter of 2023. Gross
margin was 75% for the first quarter of 2024 compared to 69% in the
first quarter of 2023. The increase in gross margin was driven by
unfavorable production variances in the prior year period as well
as favorable purchase price variances in the first quarter of
2024.
Operating expenses were $51.4 million for the first quarter of
2024, compared to $44.5 million in the comparable prior year
period, which represents an increase of 16%. The increase was
primarily driven by increased headcount and related expense in our
commercial organization.
Net loss was $14.1 million in the first quarter of 2024, or
$0.36 per share, as compared to a loss of $16.5 million, or $0.43
per share, in the corresponding period of the prior year.
Adjusted EBITDA was a loss of $3.9 million for the first quarter
of 2024 compared to a loss of $7.4 million for the first quarter of
2023. For additional information regarding non-GAAP financial
measures see “Use of Non-GAAP Financial Measures” and
“Reconciliation of GAAP Net Loss to Adjusted EBITDA” below.
Cash, cash equivalents and investments were $176.5 million as of
March 31, 2024.
2024 Financial GuidanceSilk Road Medical
projects revenue for the full year 2024 to range from $194 million
to $198 million, which represents 10% to 12% growth over the
Company’s prior year revenue.
Conference CallSilk Road Medical will host a
conference call at 1:30 p.m. PT / 4:30 p.m. ET on Tuesday, April
30, 2024, to discuss its first quarter 2024 financial results.
Those interested in listening to the conference call should
register online using this link. Participants are encouraged to
register more than 15 minutes before the start of the call. A live
and replay version of the webcast will be available at
https://investors.silkroadmed.com.
About Silk Road MedicalSilk Road Medical, Inc.
(NASDAQ: SILK), is a medical device company located in Sunnyvale,
California, and Plymouth, Minnesota, that is focused on reducing
the risk of stroke and its devastating impact. The company has
pioneered a new approach for the treatment of carotid artery
disease called TransCarotid Artery Revascularization (TCAR). TCAR
is a clinically proven procedure combining surgical principles of
neuroprotection with minimally invasive endovascular techniques to
treat blockages in the carotid artery at risk of causing a stroke.
For more information on how Silk Road Medical is delivering
brighter patient outcomes through brighter clinical thinking, visit
www.silkroadmed.com and connect on X, LinkedIn and Facebook.
Forward-Looking StatementsStatements contained
in this press release that relate to future, not past, events are
forward-looking statements under the Private Securities Litigation
Reform Act of 1995, including Silk Road Medical’s financial
guidance and statements related to the future opportunity of its
business. Forward-looking statements are based on current
expectations of future events and often can be identified by words
such as “expect,” “should,” “project,” “anticipate,” “intend,”
“will,” “can,” “may,” “believe,” “could,” “continue,” “outlook,”
“guidance,” “future,” other words of similar meaning or the use of
future dates. Forward-looking statements by their nature address
matters that are, to different degrees, uncertain. Risks and
uncertainties may cause Silk Road Medical’s actual results to be
materially different than those expressed in or implied by Silk
Road Medical’s forward-looking statements. For Silk Road Medical,
such risks and uncertainties include, among others, future
operating results and financial performance; the Company’s success
in retaining and recruiting key personnel; the ability to continue
to grow the business and expand the use of TCAR; the ability to
obtain an adequate supply of materials and components from its
third-party suppliers; product development plans and the ability to
commercialize new products in a timely manner; the success of
current clinical trials; plans to conduct further clinical trials;
the ability to obtain additional indications or new regulatory
approvals or clearances for its products; market acceptance and use
of its products by physicians; the ability to grow and leverage its
commercialization infrastructure; the effect of increased
competition; the effect of economic conditions and COVID-19 or
similar pandemics on its business; government and third-party payer
coverage and reimbursement and the ability to obtain and maintain
intellectual property protection for its products. More detailed
information on these and other factors that could affect Silk Road
Medical’s actual results are described in its filings with the U.S.
Securities and Exchange Commission, including its most recent
annual report on Form 10-K filed with the Securities and Exchange
Commission on February 28, 2024. Silk Road Medical undertakes no
obligation to update its forward-looking statements.
Use of Non-GAAP Financial MeasuresTo supplement
its financial statements prepared in accordance with U.S. generally
accepted accounting principles (GAAP), Silk Road Medical uses
adjusted EBITDA, which is a non-GAAP financial measure, in this
press release. A reconciliation of non-GAAP adjusted EBITDA to GAAP
net loss, which is the most directly comparable GAAP financial
measure, is provided in the financial statement tables included in
this press release, and investors are encouraged to review the
reconciliation. Non-GAAP adjusted EBITDA is calculated by adding
back to net loss or excluding, as appropriate, interest income and
expense, provision for income taxes, and charges for depreciation
and amortization and is further adjusted by adding back in or
excluding, as appropriate, other income and expense and stock-based
compensation. Silk Road Medical believes the presentation of
adjusted EBITDA provides useful information to investors as it
provides visibility to its underlying continuing operating
performance from period to period by excluding the impact of
certain items that are non-cash or non-recurring in nature or not
related to its core business operations. Adjusted EBITDA is also
frequently used by analysts, investors and other interested parties
to evaluate companies in the same industry. Management uses
adjusted EBITDA internally for evaluation of the performance of its
business, including the allocation of resources.
Silk Road Medical’s definition of adjusted EBITDA may differ
from similarly titled measures used by others. Adjusted EBITDA
should be considered only as a supplement to, and not as a
substitute for, or superior to, net income or loss prepared in
accordance with GAAP. Because adjusted EBITDA excludes the effect
of items that increase or decrease Silk Road Medical’s reported
results of operations, management strongly encourages investors to
review, when they become available, its financial statements and
publicly filed SEC reports in their entirety.
Investor Contact:Marissa BychGilmartin
Groupinvestors@silkroadmed.com
Media:Michael FanucchiSilk Road
Medicalmfanucchi@silkroadmed.com
|
SILK ROAD MEDICAL, INC. |
Statements of Operations Data |
(unaudited, in thousands, except share and per share
data) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
|
2023 |
|
Revenue |
$ |
48,484 |
|
|
$ |
40,131 |
|
Cost of goods sold |
|
11,983 |
|
|
|
12,526 |
|
Gross profit |
|
36,501 |
|
|
|
27,605 |
|
Operating expenses: |
|
|
|
|
|
Research and development |
|
10,660 |
|
|
|
10,433 |
|
Selling, general and administrative |
|
40,775 |
|
|
|
34,082 |
|
Total operating expenses |
|
51,435 |
|
|
|
44,515 |
|
Loss from operations |
|
(14,934 |
) |
|
|
(16,910 |
) |
Interest income |
|
2,471 |
|
|
|
2,287 |
|
Interest expense |
|
(1,721 |
) |
|
|
(1,693 |
) |
Other income (expense),
net |
|
48 |
|
|
|
(144 |
) |
Net loss |
|
(14,136 |
) |
|
|
(16,460 |
) |
Other comprehensive income
(loss): |
|
|
|
|
|
Unrealized gain (loss) on investments, net |
|
(89 |
) |
|
|
249 |
|
Other comprehensive income
(loss) |
|
(89 |
) |
|
|
249 |
|
|
|
|
|
|
|
Comprehensive loss |
$ |
(14,225 |
) |
|
$ |
(16,211 |
) |
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.36 |
) |
|
$ |
(0.43 |
) |
|
|
|
|
|
|
Weighted average common shares
used to compute net loss per share, basic and diluted |
|
39,261,496 |
|
|
|
38,532,202 |
|
|
SILK ROAD MEDICAL, INC. |
Balance Sheets Data |
(unaudited, in thousands) |
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
22,629 |
|
|
$ |
20,210 |
|
Short-term investments |
|
151,833 |
|
|
|
161,264 |
|
Accounts receivable, net |
|
27,203 |
|
|
|
23,573 |
|
Inventories |
|
30,486 |
|
|
|
29,876 |
|
Prepaid expenses and other current assets |
|
3,543 |
|
|
|
5,912 |
|
Total current assets |
|
235,694 |
|
|
|
240,835 |
|
Long-term investments |
|
2,027 |
|
|
|
9,456 |
|
Property and equipment,
net |
|
8,085 |
|
|
|
8,114 |
|
Other non-current assets |
|
6,508 |
|
|
|
6,904 |
|
Total assets |
$ |
252,314 |
|
|
$ |
265,309 |
|
Liabilities and
stockholders' equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
2,966 |
|
|
$ |
5,676 |
|
Accrued liabilities |
|
18,371 |
|
|
|
24,607 |
|
Total current liabilities |
|
21,337 |
|
|
|
30,283 |
|
Long-term debt |
|
75,886 |
|
|
|
75,626 |
|
Other liabilities |
|
7,806 |
|
|
|
8,249 |
|
Total liabilities |
|
105,029 |
|
|
|
114,158 |
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, $0.001 par value |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value |
|
39 |
|
|
|
39 |
|
Additional paid-in
capital |
|
560,854 |
|
|
|
550,495 |
|
Accumulated other
comprehensive income (loss) |
|
(17 |
) |
|
|
72 |
|
Accumulated deficit |
|
(413,591 |
) |
|
|
(399,455 |
) |
Total stockholders' equity |
|
147,285 |
|
|
|
151,151 |
|
Total liabilities and stockholders' equity |
$ |
252,314 |
|
|
$ |
265,309 |
|
|
SILK ROAD MEDICAL, INC. |
Reconciliation of GAAP Net Loss to Adjusted
EBITDA |
(unaudited, in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
2024 |
|
|
2023 |
|
GAAP Net Loss |
$ |
(14,136 |
) |
|
$ |
(16,460 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
Interest (income) expense, net |
|
(750 |
) |
|
|
(594 |
) |
Depreciation and amortization |
|
644 |
|
|
|
699 |
|
Other (income) expense, net |
|
(48 |
) |
|
|
144 |
|
Stock-based compensation expense |
|
10,359 |
|
|
|
8,838 |
|
Adjusted EBITDA |
$ |
(3,931 |
) |
|
$ |
(7,373 |
) |
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