Silk Road Medical Reports Second Quarter 2023 Financial Results
02 August 2023 - 6:05AM
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 June 30,
2023.
“Silk Road is the leading force in stroke prevention for
patients with severe carotid artery stenosis, and our second
quarter results demonstrate the strong momentum behind TCAR as the
gold standard in carotid stenting,” said Erica Rogers, CEO of Silk
Road Medical. “Our next generation technology coupled with our
expanding field presence further strengthen our category leadership
in the treatment of carotid artery disease.”
Second Quarter 2023 Financial ResultsRevenue
for the second quarter of 2023 was $45.3 million, an increase of
$12.1 million or 37%, compared to the second quarter of 2022.
Growth was driven primarily by growing TCAR adoption.
Gross profit for the second quarter of 2023 was $32.3 million
compared to $24.2 million for the second quarter of 2022. Gross
margin was 71% for the second quarter of 2023 compared to 73% for
the second quarter of 2022. Gross margin in the second quarter of
2023 was impacted by higher manufacturing costs associated with
labor and materials and supporting two manufacturing
facilities.
Operating expenses were $46.6 million for the second quarter of
2023, compared to $38.4 million in the comparable prior year
period, which represents an increase of 22%. The increase was due
primarily to the continued expansion of the sales team and
commercial efforts.
Net loss was $13.5 million in the second quarter of 2023, or
$0.35 per share, as compared to a loss of $15.4 million, or $0.44
per share, in the corresponding period of the prior year.
Cash, cash equivalents and investments were $202.2 million as of
June 30, 2023.
2023 Financial GuidanceSilk Road Medical
projects revenue for the full year 2023 to range from $180 million
to $184 million, which represents 30% to 33% 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, August
1, 2023, to discuss its second quarter 2023 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 Twitter, LinkedIn and
Facebook.
Forward-Looking StatementsStatements contained
in this 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 strength of its business and
ability to achieve growth. 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 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; plans to conduct
further clinical trials; the ability to obtain additional
indications or new regulatory approvals or clearances for its
products; use of its products by physicians; the ability to grow
its commercialization infrastructure; the effect of economic
conditions and COVID-19 or similar pandemics on its business;
government and third-party payer coverage and reimbursement;
success in retaining and recruiting key personnel; 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 quarterly report on Form 10-Q filed with
the Securities and Exchange Commission on May 9, 2023. Silk Road
Medical undertakes no obligation to update its forward-looking
statements.
Investor Contact:Lynn Lewis or 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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
$ |
45,298 |
|
|
$ |
33,173 |
|
|
$ |
85,429 |
|
|
$ |
61,193 |
|
Cost of goods sold |
|
13,004 |
|
|
|
9,012 |
|
|
|
25,530 |
|
|
|
17,588 |
|
Gross profit |
|
32,294 |
|
|
|
24,161 |
|
|
|
59,899 |
|
|
|
43,605 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
10,780 |
|
|
|
10,655 |
|
|
|
21,213 |
|
|
|
18,778 |
|
Selling, general and administrative |
|
35,830 |
|
|
|
27,700 |
|
|
|
69,913 |
|
|
|
54,975 |
|
Total operating expenses |
|
46,610 |
|
|
|
38,355 |
|
|
|
91,126 |
|
|
|
73,753 |
|
Loss from operations |
|
(14,316) |
|
|
|
(14,194) |
|
|
|
(31,227) |
|
|
|
(30,148) |
|
Interest income |
|
2,434 |
|
|
|
122 |
|
|
|
4,721 |
|
|
|
134 |
|
Interest expense |
|
(1,712) |
|
|
|
(1,031) |
|
|
|
(3,405) |
|
|
|
(1,652) |
|
Loss on debt
extinguishment |
|
— |
|
|
|
(245) |
|
|
|
— |
|
|
|
(245) |
|
Other income (expense),
net |
|
110 |
|
|
|
(50) |
|
|
|
(33) |
|
|
|
(166) |
|
Net loss |
|
(13,484) |
|
|
|
(15,398) |
|
|
|
(29,944) |
|
|
|
(32,077) |
|
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized loss on investments, net |
|
(414) |
|
|
|
(2) |
|
|
|
(165) |
|
|
|
(2) |
|
Other comprehensive loss |
|
(414) |
|
|
|
(2) |
|
|
|
(165) |
|
|
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and comprehensive
loss |
$ |
(13,898) |
|
|
$ |
(15,400) |
|
|
$ |
(30,109) |
|
|
$ |
(32,079) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.35) |
|
|
$ |
(0.44) |
|
|
$ |
(0.77) |
|
|
$ |
(0.91) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
used to compute net loss per share, basic and diluted |
|
38,765,166 |
|
|
|
35,143,178 |
|
|
|
38,649,327 |
|
|
|
35,083,569 |
|
SILK ROAD MEDICAL, INC. |
Balance Sheets Data |
(unaudited, in thousands) |
|
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
28,400 |
|
|
$ |
55,358 |
|
Short-term investments |
|
159,961 |
|
|
|
158,316 |
|
Accounts receivable, net |
|
21,525 |
|
|
|
18,007 |
|
Inventories |
|
19,067 |
|
|
|
19,293 |
|
Prepaid expenses and other current assets |
|
4,543 |
|
|
|
3,924 |
|
Total current assets |
|
233,496 |
|
|
|
254,898 |
|
Long-term investments |
|
13,884 |
|
|
|
— |
|
Property and equipment,
net |
|
8,644 |
|
|
|
9,372 |
|
Restricted cash |
|
— |
|
|
|
155 |
|
Other non-current assets |
|
7,336 |
|
|
|
5,260 |
|
Total assets |
$ |
263,360 |
|
|
$ |
269,685 |
|
Liabilities and
stockholders' equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
5,338 |
|
|
$ |
2,523 |
|
Accrued liabilities |
|
18,759 |
|
|
|
21,965 |
|
Total current liabilities |
|
24,097 |
|
|
|
24,488 |
|
Long-term debt |
|
75,104 |
|
|
|
74,596 |
|
Other liabilities |
|
8,654 |
|
|
|
6,726 |
|
Total liabilities |
|
107,855 |
|
|
|
105,810 |
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, $0.001 par value |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value |
|
39 |
|
|
|
38 |
|
Additional paid-in
capital |
|
529,453 |
|
|
|
507,715 |
|
Accumulated other
comprehensive income (loss) |
|
(331) |
|
|
|
(166) |
|
Accumulated deficit |
|
(373,656) |
|
|
|
(343,712) |
|
Total stockholders' equity |
|
155,505 |
|
|
|
163,875 |
|
Total liabilities and stockholders' equity |
$ |
263,360 |
|
|
$ |
269,685 |
|
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