Silk Road Medical Reports Third Quarter 2023 Financial Results
09 November 2023 - 8:05AM
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 September 30,
2023.
“As announced on November 2, we are thrilled to welcome Chas
McKhann as the new Chief Executive Officer of Silk Road Medical,”
said Jack Lasersohn, Chairman of the Board of Directors. “Chas is a
skilled and experienced leader with a track record of effectively
building and scaling medical device businesses into underpenetrated
markets. We believe he is the right leader to leverage our strong
infrastructure, skilled commercial team, and substantial body of
clinical evidence to drive further TCAR adoption.”
Third Quarter 2023 Financial ResultsRevenue for
the third quarter of 2023 was $44.4 million, an increase of $7.1
million or 19%, compared to the third quarter of 2022. Growth was
driven primarily by increased TCAR adoption.
Gross profit for the third quarter of 2023 was $32.4 million
compared to $28.1 million for the third quarter of 2022. Gross
margin was 73% for the third quarter of 2023 compared to 75% for
the third quarter of 2022. The decrease was driven by a revaluation
of standard costs in the prior year period which benefitted
margins, as well as higher manufacturing costs associated with
having two manufacturing facilities fully operational in the third
quarter of 2023.
Operating expenses were $46.1 million for the third quarter of
2023, compared to $37.3 million in the comparable prior year
period, which represents an increase of 24%. The increase was due
primarily to the continued expansion of the sales team and
commercial efforts.
Net loss was $12.8 million in the third quarter of 2023, or
$0.33 per share, as compared to a loss of $10.3 million, or $0.29
per share, in the corresponding period of the prior year.
Cash, cash equivalents and investments were $197.2 million as of
September 30, 2023.
2023 Financial GuidanceSilk Road Medical
projects revenue for full year 2023 to range from $170 million to
$174 million, which represents 23% to 26% 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 Wednesday,
November 8, 2023, to discuss its third 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. 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; risks surrounding the
CEO transition; 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; 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 quarterly report on Form 10-Q filed with the
Securities and Exchange Commission on November 8, 2023. Silk Road
Medical undertakes no obligation to update its forward-looking
statements.
Investor Contact:Marissa BychGilmartin Group
LLCinvestors@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 |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
$ |
44,435 |
|
|
$ |
37,374 |
|
|
$ |
129,864 |
|
|
$ |
98,567 |
|
Cost of goods sold |
|
12,050 |
|
|
|
9,308 |
|
|
|
37,580 |
|
|
|
26,897 |
|
Gross profit |
|
32,385 |
|
|
|
28,066 |
|
|
|
92,284 |
|
|
|
71,670 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
10,047 |
|
|
|
8,471 |
|
|
|
31,260 |
|
|
|
27,249 |
|
Selling, general and administrative |
|
36,009 |
|
|
|
28,821 |
|
|
|
105,923 |
|
|
|
83,795 |
|
Total operating expenses |
|
46,056 |
|
|
|
37,292 |
|
|
|
137,183 |
|
|
|
111,044 |
|
Loss from operations |
|
(13,671 |
) |
|
|
(9,226 |
) |
|
|
(44,899 |
) |
|
|
(39,374 |
) |
Interest income |
|
2,617 |
|
|
|
617 |
|
|
|
7,339 |
|
|
|
751 |
|
Interest expense |
|
(1,732 |
) |
|
|
(1,714 |
) |
|
|
(5,137 |
) |
|
|
(3,366 |
) |
Loss on debt
extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(245 |
) |
Other income (expense),
net |
|
(2 |
) |
|
|
4 |
|
|
|
(35 |
) |
|
|
(162 |
) |
Net loss |
|
(12,788 |
) |
|
|
(10,319 |
) |
|
|
(42,732 |
) |
|
|
(42,396 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on investments, net |
|
47 |
|
|
|
(189 |
) |
|
|
(118 |
) |
|
|
(191 |
) |
Other comprehensive loss |
|
47 |
|
|
|
(189 |
) |
|
|
(118 |
) |
|
|
(191 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and comprehensive
loss |
$ |
(12,741 |
) |
|
$ |
(10,508 |
) |
|
$ |
(42,850 |
) |
|
$ |
(42,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.33 |
) |
|
$ |
(0.29 |
) |
|
$ |
(1.10 |
) |
|
$ |
(1.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
used to compute net loss per share, basic and diluted |
|
38,865,011 |
|
|
|
35,303,958 |
|
|
|
38,722,012 |
|
|
|
35,157,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILK ROAD MEDICAL, INC. |
Balance Sheets Data |
(unaudited, in thousands) |
|
|
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
29,188 |
|
|
$ |
55,358 |
|
Short-term investments |
|
163,673 |
|
|
|
158,316 |
|
Accounts receivable, net |
|
21,779 |
|
|
|
18,007 |
|
Inventories |
|
22,066 |
|
|
|
19,293 |
|
Prepaid expenses and other current assets |
|
4,277 |
|
|
|
3,924 |
|
Total current assets |
|
240,983 |
|
|
|
254,898 |
|
Long-term investments |
|
4,348 |
|
|
|
— |
|
Property and equipment,
net |
|
8,337 |
|
|
|
9,372 |
|
Restricted cash |
|
— |
|
|
|
155 |
|
Other non-current assets |
|
7,196 |
|
|
|
5,260 |
|
Total assets |
$ |
260,864 |
|
|
$ |
269,685 |
|
Liabilities and
stockholders' equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
5,094 |
|
|
$ |
2,523 |
|
Accrued liabilities |
|
18,928 |
|
|
|
21,965 |
|
Total current liabilities |
|
24,022 |
|
|
|
24,488 |
|
Long-term debt |
|
75,364 |
|
|
|
74,596 |
|
Other liabilities |
|
8,336 |
|
|
|
6,726 |
|
Total liabilities |
|
107,722 |
|
|
|
105,810 |
|
Stockholders' equity |
|
|
|
|
|
Preferred stock, $0.001 par value |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value |
|
39 |
|
|
|
38 |
|
Additional paid-in
capital |
|
539,831 |
|
|
|
507,715 |
|
Accumulated other
comprehensive loss |
|
(284 |
) |
|
|
(166 |
) |
Accumulated deficit |
|
(386,444 |
) |
|
|
(343,712 |
) |
Total stockholders' equity |
|
153,142 |
|
|
|
163,875 |
|
Total liabilities and stockholders' equity |
$ |
260,864 |
|
|
$ |
269,685 |
|
|
|
|
|
|
|
|
|
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