Generated quarterly revenue of $92.9 million,
an increase of 35% year over year
Fiscal year 2023 revenue guidance increased to
$358 million
Axonics, Inc. (Nasdaq: AXNX), a global medical technology
company that is developing and commercializing novel products for
the treatment of bladder and bowel dysfunction, today reported
financial results for the three months ended June 30, 2023.
“Our commercial team continues to execute at a high level,
generating revenue growth of 35% year over year in the second
quarter,” said Raymond W. Cohen, chief executive officer. “Our
growth was driven by higher utilization and share of wallet at
existing customers and the onboarding of new accounts. Based on the
strong results generated in the second quarter, we are raising our
fiscal year 2023 revenue guidance to $358 million, representing
growth of 31% year over year.”
Cohen continued, “Higher manufacturing yields, insourcing
certain processes, and a keen focus on managing our supply chain
resulted in a gross margin of over 75% in the second quarter. This
gross margin result combined with record revenue and the inherent
operating leverage of our business model resulted in adjusted
EBITDA of over $18 million in the second quarter. Axonics is
growing rapidly and profitably as we advance on our path to
incontinence market leadership.”
2Q23 Financial Results
- Net revenue was $92.9 million in 2Q23, an increase of 35%
compared to the prior year period.
- Sacral neuromodulation revenue was $74.2 million, of which
$72.2 million was generated in the U.S. and the remainder in
international markets.
- Bulkamid revenue was $18.7 million, of which $14.8 million was
generated in the U.S. and the remainder in international
markets.
- Gross margin was 75.6% in 2Q23 compared to 72.8% in the prior
year period.
- Operating expenses were $82.3 million in 2Q23 and included a
$15.4 million non-cash charge for acquired in-process research and
development related to the Radian technology acquisition and a $0.6
million non-cash charge for the change in fair value of contingent
consideration related to the Bulkamid acquisition. Operating
expenses were $71.6 million in the prior year period.
- Excluding the above-referenced non-cash charges, adjusted
operating expenses were $66.2 million in 2Q23.
- Adjusted EBITDA was $18.4 million in 2Q23 compared to $1.6
million in the prior year period.
- Net loss was $7.3 million in 2Q23 compared to a net loss of
$21.4 million in the prior year period.
- Cash, cash equivalents and short-term investments were $331.5
million as of June 30, 2023.
- In 2Q23, Axonics made a $35 million milestone payment to
Contura Holdings Limited related to Bulkamid achieving over $50
million of sales in the 12-month period ended March 31, 2023.
Fiscal Year 2023 Revenue Guidance
Axonics has updated its fiscal year 2023 revenue guidance as
follows:
- Total company revenue of $358 million, an increase of 31%
compared to fiscal year 2022. This compares to prior fiscal year
2023 revenue guidance of $348 million.
- Sacral neuromodulation revenue of $285.5 million, an increase
of 29% compared to fiscal year 2022.
- Bulkamid revenue of $72.5 million, an increase of 40% compared
to fiscal year 2022.
Webcast and Conference Call
Axonics will host a conference call today at 4:30 p.m. Eastern
Time to discuss financial results and recent business developments.
To access the conference call by telephone, interested parties may
register at the following link: Axonics 2Q23 registration.
For those not planning to ask a question, the company recommends
accessing the conference call by webcast at the following link:
Axonics 2Q23 webcast. A replay of the webcast will be archived in
the Events section of the Axonics investor relations website.
About Axonics
Axonics is a global medical technology company that is
developing and commercializing novel products for adults with
bladder and bowel dysfunction. Axonics recently ranked No. 2 on the
2023 Financial Times ranking of the fastest growing companies in
the Americas and No. 4 on the 2022 Deloitte Technology Fast
500.
Axonics® sacral neuromodulation systems provide adults with
overactive bladder and/or fecal incontinence with long-lived, easy
to use, safe, clinically effective therapy. In addition, the
company’s best-in-class urethral bulking hydrogel, Bulkamid®,
provides safe and durable symptom relief to women with stress
urinary incontinence. In the U.S., moderate to severe urinary
incontinence affects an estimated 28 million women and fecal
incontinence affects an estimated 19 million adults. For more
information, visit www.axonics.com.
Forward-Looking Statements
Statements made in this press release that relate to future
plans, events, prospects or performance are forward-looking
statements as defined under the Private Securities Litigation
Reform Act of 1995. Words such as “plans,” “expects,” “believes,”
“anticipates,” “designs,” and similar words are intended to
identify forward-looking statements. While these forward-looking
statements are based on the current expectations and beliefs of
management, such forward-looking statements are subject to a number
of risks, uncertainties, assumptions and other factors that could
cause actual results to differ materially from the expectations
expressed in this press release, including the risks and
uncertainties disclosed in Axonics filings with the Securities and
Exchange Commission, all of which are available online at
www.sec.gov. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. Except as required by law, Axonics undertakes no obligation
to update or revise any forward-looking statements to reflect new
information, changed circumstances or unanticipated events.
Use of Non-GAAP Financial Measures
To supplement Axonics’ consolidated financial statements
prepared in accordance with generally accepted accounting
principles (GAAP), Axonics provides certain non-GAAP financial
measures in this release as supplemental financial metrics.
Adjusted EBITDA is calculated as net income (loss) before other
income/expense (including interest), income tax expense (benefit),
depreciation and amortization expense, stock-based compensation
expense, acquisition-related costs, acquired in-process research
and development expense, loss on disposal of property and
equipment, and expense related to impairment of intangible assets.
Management believes that in order to properly understand short-term
and long-term financial trends, investors may want to consider the
impact of these excluded items in addition to GAAP measures. The
excluded items vary in frequency and/or impact on our results of
operations and management believes that the excluded items are
typically not reflective of our ongoing core business operations
and financial condition. Further, management uses adjusted EBITDA
for both strategic and annual operating planning. A reconciliation
of adjusted EBITDA reported in this release to the most comparable
GAAP measure for the respective periods appears in the table
captioned “Reconciliation of GAAP Net Income (Loss) to Adjusted
EBITDA” later in this release.
The non-GAAP financial measures used by Axonics may not be the
same or calculated in the same manner as those used and calculated
by other companies. Non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a
substitute for Axonics’ financial results prepared and reported in
accordance with GAAP. We urge investors to review the
reconciliation of these non-GAAP financial measures to the
comparable GAAP financial measures included in this press release,
and not to rely on any single financial measure to evaluate our
business.
Axonics, Inc.
Consolidated Balance
Sheets
(in thousands, except share
and per share data)
June 30,
December 31,
2023
2022
(unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
145,343
$
238,846
Short-term investments
186,173
118,365
Accounts receivable, net of allowance for
credit losses of $367 and $321 at June 30, 2023 and December 31,
2022, respectively
47,436
44,817
Inventory, net
70,083
55,765
Prepaid expenses and other current
assets
6,361
7,282
Total current assets
455,396
465,075
Property and equipment, net
6,349
6,798
Intangible assets, net
85,543
86,253
Other assets
2,817
6,813
Goodwill
98,880
94,414
Total assets
$
648,985
$
659,353
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
12,185
$
9,070
Accrued liabilities
5,571
6,520
Accrued compensation and benefits
12,559
15,495
Operating lease liability, current
portion
1,769
1,562
Other current liabilities
—
32,600
Total current liabilities
32,084
65,247
Operating lease liability, net of current
portion
1,199
7,555
Deferred tax liabilities, net
15,173
16,412
Total liabilities
48,456
89,214
Commitments and contingencies
Stockholders’ equity
Preferred stock, par value $0.0001 per
share; 10,000,000 shares authorized, no shares issued and
outstanding at June 30, 2023 and December 31, 2022
—
—
Common stock, par value $0.0001,
75,000,000 shares authorized at June 30, 2023 and December 31,
2022; 50,461,257 and 49,546,727 shares issued and outstanding at
June 30, 2023 and December 31, 2022, respectively
5
5
Additional paid-in capital
1,009,704
969,545
Accumulated deficit
(390,854
)
(374,264
)
Accumulated other comprehensive loss
(18,326
)
(25,147
)
Total stockholders’ equity
600,529
570,139
Total liabilities and stockholders’
equity
$
648,985
$
659,353
Axonics, Inc.
Consolidated Statements of
Comprehensive Loss
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Net revenue
$
92,894
$
68,980
$
163,544
$
117,400
Cost of goods sold
22,704
18,784
40,854
33,962
Gross profit
70,190
50,196
122,690
83,438
Operating expenses
Research and development
8,949
7,135
17,005
18,371
General and administrative
10,713
10,572
22,881
20,585
Sales and marketing
44,270
39,381
86,924
72,444
Amortization of intangible assets
2,279
2,332
4,501
4,795
Acquisition-related costs
602
12,205
2,368
12,205
Acquired in-process research &
development
15,447
—
15,447
—
Total operating expenses
82,260
71,625
149,126
128,400
Loss from operations
(12,070
)
(21,429
)
(26,436
)
(44,962
)
Other income (expense)
Interest and other income
4,250
360
7,878
403
Interest and other expense
174
(839
)
857
(1,128
)
Other income (expense), net
4,424
(479
)
8,735
(725
)
Loss before income tax benefit
(7,646
)
(21,908
)
(17,701
)
(45,687
)
Income tax benefit
(304
)
(465
)
(1,111
)
(1,576
)
Net loss
(7,342
)
(21,443
)
(16,590
)
(44,111
)
Foreign currency translation
adjustment
3,750
(12,648
)
6,821
(17,568
)
Comprehensive loss
$
(3,592
)
$
(34,091
)
$
(9,769
)
$
(61,679
)
Net loss per share, basic and diluted
$
(0.15
)
$
(0.47
)
$
(0.34
)
$
(0.98
)
Weighted-average shares used to compute
basic and diluted net loss per share
49,088,373
45,311,001
48,835,135
45,225,494
Axonics, Inc.
Net Revenue by Product and
Region
(in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Sacral neuromodulation
United States
$
72,205
$
54,468
$
126,058
$
92,183
International
1,983
1,290
3,288
2,645
Sacral neuromodulation total
$
74,188
$
55,758
$
129,346
$
94,828
Bulkamid
United States
$
14,806
$
10,223
$
26,419
$
16,792
International
3,900
2,999
7,779
5,780
Bulkamid total
$
18,706
$
13,222
$
34,198
$
22,572
Total net revenue
$
92,894
$
68,980
$
163,544
$
117,400
Axonics, Inc.
Reconciliation of GAAP Net
Loss to Adjusted EBITDA
(in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
GAAP Net loss
$
(7,342
)
$
(21,443
)
$
(16,590
)
$
(44,111
)
Non-GAAP Adjustments:
Interest and other income
(4,250
)
(360
)
(7,878
)
(403
)
Interest and other expense
(174
)
839
(857
)
1,128
Income tax benefit
(304
)
(465
)
(1,111
)
(1,576
)
Depreciation and amortization expense
3,228
2,891
6,041
5,920
Stock-based compensation expense
11,204
7,905
21,918
15,043
Acquisition-related costs
602
12,205
2,368
12,205
Acquired in-process research &
development
15,447
—
15,447
—
Adjusted EBITDA
$
18,411
$
1,572
$
19,338
$
(11,794
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727975722/en/
Axonics Neil Bhalodkar 949-336-5293 IR@axonics.com
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