Glaukos Corporation (NYSE: GKOS), an ophthalmic pharmaceutical
and medical technology company focused on novel therapies for the
treatment of glaucoma, corneal disorders and retinal diseases,
today announced financial results for the third quarter ended
September 30, 2024. Key highlights for the third quarter of 2024
include:
- Record net sales of $96.7 million increased 24%
year-over-year.
- Glaucoma record net sales of $76.0 million increased 30%
year-over-year.
- Corneal Health net sales of $20.6 million increased 5%
year-over-year.
- Gross margin of approximately 77% and non-GAAP gross margin of
approximately 82%.
- Raised 2024 net sales guidance to $377 million to $379 million,
compared to $370 million to $376 million previously.
“Our record third quarter results reflect successful global
execution of our key strategic plans and continued strong momentum
in our business,” said Thomas Burns, Glaukos chairman and chief
executive officer. “We continue to successfully advance our robust
pipeline of novel, dropless platform technologies designed to
meaningfully advance the standard of care and improve outcomes for
patients suffering from chronic eye diseases.”
Third Quarter 2024 Financial Results
Net sales in the third quarter of 2024 of $96.7 million
increased 24%, compared to $78.0 million in the same period in
2023.
Gross margin for the third quarter of 2024 was approximately
77%, compared to approximately 76% in the same period in 2023.
Non-GAAP gross margin for the third quarter of 2024 was
approximately 82%, compared to approximately 83% in the same period
in 2023.
Selling, general and administrative (SG&A) expenses for the
third quarter of 2024 increased 18% to $64.0 million, compared to
$54.2 million in the same period in 2023. Non-GAAP SG&A
expenses for the third quarter of 2024 increased 18% to $63.3
million, compared to $53.5 million in the same period in 2023.
GAAP and non-GAAP research and development (R&D) expenses
for the third quarter of 2024 increased 4% to $34.7 million,
compared to $33.3 million in the same period in 2023.
Loss from operations in the third quarter of 2024 was $24.7
million, compared to operating loss of $28.0 million in the third
quarter of 2023. Non-GAAP loss from operations in the third quarter
of 2024 was $18.4 million, compared to non-GAAP operating loss of
$21.8 million in the third quarter of 2023.
Net loss in the third quarter of 2024 was $21.4 million, or
($0.39) per diluted share, compared to net loss of $30.4 million,
or ($0.63) per diluted share, in the third quarter of 2023.
Non-GAAP net loss in the third quarter of 2024 was $15.2 million,
or ($0.28) per diluted share, compared to non-GAAP net loss of
$24.2 million, or ($0.50) per diluted share, in the third quarter
of 2023.
The company ended the third quarter of 2024 with approximately
$267.2 million in cash and cash equivalents, short-term investments
and restricted cash.
2024 Revenue Guidance
The company expects 2024 net sales to be in the range of $377
million to $379 million based on the latest foreign currency
exchange rates.
Webcast & Conference Call
The company will host a conference call and simultaneous webcast
today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results and
provide additional information about the company’s financial
outlook. A link to the webcast is available on the company’s
website at http://investors.glaukos.com. To participate in the
conference call, please dial 888-210-2212 (U.S.) or 646-960-0390
(international) and enter Conference ID 7935742. A replay of the
webcast will be archived on the company’s website following
completion of the call.
Quarterly Summary Document
The company has posted a document on its Investor Relations
website under the “Financials & Filings – Quarterly Results”
section titled “Quarterly Summary.” This Quarterly Summary document
is designed to provide the investment community with a summarized
and easily accessible reference document that details the key facts
associated with the quarter, the state of the company’s business
objectives and strategies and any forward statements or guidance
the company may make. This document is provided alongside the
company’s earnings press release and is designed to be read by
investors before the regularly scheduled quarterly conference call.
As such, today’s conference call will be in a format primarily
consisting of a questions and answers session, during which Glaukos
will address any queries investors have regarding the company’s
results. It is the company’s goal that this format will make its
quarterly earnings process more efficient and impactful for the
investment community going forward.
About Glaukos
Glaukos (www.glaukos.com) is an ophthalmic pharmaceutical and
medical technology company focused on developing and
commercializing novel therapies for the treatment of glaucoma,
corneal disorders and retinal diseases. Glaukos first developed
Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the
traditional glaucoma treatment paradigm, launching its first MIGS
device commercially in 2012. In 2024, Glaukos commenced commercial
launch activities for iDose® TR, a first-of-its-kind,
long-duration, intracameral procedural pharmaceutical designed to
deliver 24/7 glaucoma drug therapy inside the eye for extended
periods of time. Glaukos also markets the only FDA-approved corneal
cross-linking therapy utilizing a proprietary bio-activated
pharmaceutical for the treatment of keratoconus, a rare corneal
disorder. Glaukos continues to successfully develop and advance a
robust pipeline of novel, dropless platform technologies designed
to meaningfully advance the standard of care and improve outcomes
for patients suffering from chronic eye diseases.
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of federal securities laws. All statements other than
statements of historical facts included in this press release that
address activities, events or developments that we expect, believe
or anticipate will or may occur in the future are forward-looking
statements. These statements are based on management’s current
expectations, assumptions, estimates and beliefs. Although we
believe that we have a reasonable basis for forward-looking
statements contained herein, we caution you that they are based on
current expectations about future events affecting us and are
subject to risks, uncertainties and factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control, that may cause
our actual results to differ materially from those expressed or
implied by forward-looking statements in this press release. These
potential risks and uncertainties that could cause actual results
to differ materially from those described in forward-looking
statements include, without limitation, our ability to successfully
commercialize our iDose TR therapy; the impact of general
macroeconomic conditions including foreign currency fluctuations
and future health crises on our business; our ability to continue
to generate sales of our commercialized products and develop and
commercialize additional products; our dependence on a limited
number of third-party suppliers, some of which are single-source,
for components of our products; the occurrence of a crippling
accident, natural disaster, or other disruption at our primary
facility, which may materially affect our manufacturing capacity
and operations; securing or maintaining adequate coverage or
reimbursement by third-party payors for procedures using the
iStent, the iStent inject W, iAccess, iPRIME, iStent infinite,
iDose TR, our corneal cross-linking products or other products in
development, and our compliance with the requirements of
participation in federal healthcare programs such as Medicare and
Medicaid; our compliance with federal, state and foreign laws and
regulations for the approval and sale and marketing of our products
and of our manufacturing processes; the lengthy and expensive
clinical trial process and the uncertainty of timing and outcomes
from any particular clinical trial or regulatory approval
processes; the risk of recalls or serious safety issues with our
products and the uncertainty of patient outcomes; our ability to
protect our information systems against cyber threats and
cybersecurity incidents, and to comply with state, federal and
foreign data privacy laws and regulations; our ability to protect,
and the expense and time-consuming nature of protecting our
intellectual property against third parties and competitors and the
impact of any claims against us for infringement or
misappropriation of third party intellectual property rights and
any related litigation; and our ability to service our
indebtedness. These and other known risks, uncertainties and
factors are described in detail under the caption “Risk Factors”
and elsewhere in our filings with the Securities and Exchange
Commission (SEC), including in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2024, which was filed with the SEC
on August 2, 2024, and our Quarterly Report on Form 10-Q for the
quarter ended September 30, 2024, which is expected to be filed
with the SEC by November 12, 2024. Our filings with the SEC are
available in the Investor Section of our website at www.glaukos.com
or at www.sec.gov. In addition, information about the risks and
benefits of our products is available on our website at
www.glaukos.com. All forward-looking statements included in this
press release are expressly qualified in their entirety by the
foregoing cautionary statements. You are cautioned not to place
undue reliance on the forward-looking statements in this press
release, which speak only as of the date hereof. We do not
undertake any obligation to update, amend or clarify these
forward-looking statements whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities law.
Statement Regarding Use of Non-GAAP Financial
Measures
To supplement the consolidated financial results prepared in
accordance with Generally Accepted Accounting Principles (“GAAP”),
the Company uses certain non-GAAP historical financial measures.
Management makes adjustments to the GAAP measures for items (both
charges and gains) that (a) do not reflect the core operational
activities of the Company, (b) are commonly adjusted within the
Company’s industry to enhance comparability of the Company's
financial results with those of its peer group, or (c) are
inconsistent in amount or frequency between periods (albeit such
items are monitored and controlled with equal diligence relative to
core operations) (“Non-GAAP Purposes”). The Company uses the term
“Non-GAAP” to exclude certain expenses, gains and losses to achieve
the Non-GAAP Purposes, including external acquisition-related costs
incurred to effect a business combination; amortization of
intangible assets acquired in a business combination, asset
purchase transaction or other contractual relationship; impairment
of goodwill and intangible assets; certain in-process R&D
charges; fair value adjustments to contingent consideration
liabilities and pre-acquisition contingencies arising from a
business combination; integration and transition costs related to
business combinations; fair market value adjustments to inventories
acquired in a business combination or asset purchase transaction;
restructuring charges, duplicative operating expenses, or asset
write-offs (or reversals) associated with exiting or significantly
downsizing a business; gain or loss from the sale of a business;
gain or loss on the mark-to-market adjustment, impairment, or sale
of long-term investments; mark-to-market adjustments on derivative
instruments that hedge income or expense exposures in a future
period; significant legal litigation costs and/or settlement
expenses or proceeds; legal and other associated expenses that are
both unusual and significant related to governmental or internal
inquiries; expenses, acceleration of amortization of debt issuance
costs and gain or loss on debt extinguishment associated with the
exchange or redemption of convertible senior notes; and significant
discrete income and other tax adjustments related to transactions
as well as changes in estimated acquisition-date tax effects
associated with business combinations, and the impact from
implementation of tax law changes and settlements. See “GAAP to
Non-GAAP Reconciliations” for a reconciliation of each non-GAAP
measure presented to the comparable GAAP financial measure.
In addition, in order to remove the impact of fluctuations in
foreign currency exchange rates, the Company also presents certain
net sales information on a constant currency basis, which
represents the outcome that would have resulted had exchange rates
in the current period been the same as the average exchange rates
in effect in the comparable prior period. See “Reported Sales vs.
Prior Periods” for a presentation of certain net sales information
on a reported, GAAP and a constant currency basis.
GLAUKOS CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited) (in thousands,
except per share amounts) Three Months Ended
Nine Months Ended September 30, September 30,
2024
2023
2024
2023
Net sales
$
96,670
$
78,048
$
277,982
$
232,346
Cost of sales
22,584
18,510
65,392
56,684
Gross profit
74,086
59,538
212,590
175,662
Operating expenses: Selling, general and administrative
64,000
54,247
192,163
161,034
Research and development
34,746
33,301
99,898
101,706
Acquired in-process research and development
-
-
14,229
3,000
Total operating expenses
98,746
87,548
306,290
265,740
Loss from operations
(24,660
)
(28,010
)
(93,700
)
(90,078
)
Non-operating income (expense): Interest income
2,700
2,710
8,611
6,252
Interest expense
(1,663
)
(3,398
)
(8,468
)
(10,205
)
Charges associated with convertible senior notes
-
-
(18,012
)
-
Other income (expense), net
2,391
(1,709
)
(338
)
(2,978
)
Total non-operating income (expense)
3,428
(2,397
)
(18,207
)
(6,931
)
Loss before taxes
(21,232
)
(30,407
)
(111,907
)
(97,009
)
Income tax provision
177
37
885
873
Net loss
$
(21,409
)
$
(30,444
)
$
(112,792
)
$
(97,882
)
Basic and diluted net loss per share
$
(0.39
)
$
(0.63
)
$
(2.18
)
$
(2.03
)
Weighted average shares used to compute basic and diluted
net loss per share
55,037
48,675
51,804
48,284
GLAUKOS CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except par values)
September 30,
December 31,
2024
2023
(unaudited) Assets Current assets: Cash and cash
equivalents
$
100,143
$
93,467
Short-term investments
162,330
201,964
Accounts receivable, net
56,408
39,850
Inventory
59,895
41,986
Prepaid expenses and other current assets
18,506
18,194
Total current assets
397,282
395,461
Restricted cash
4,733
5,856
Property and equipment, net
98,581
103,212
Operating lease right-of-use assets
27,321
27,146
Finance lease right-of-use asset
42,365
44,180
Intangible assets, net
269,418
282,956
Goodwill
66,134
66,134
Deposits and other assets
20,709
15,469
Total assets
$
926,543
$
940,414
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
11,103
$
13,440
Accrued liabilities
60,581
60,574
Total current liabilities
71,684
74,014
Convertible senior notes
56,759
282,773
Operating lease liability
30,656
30,427
Finance lease liability
69,712
70,538
Deferred tax liability, net
7,143
7,144
Other liabilities
22,080
13,752
Total liabilities
258,034
478,648
Stockholders' equity: Preferred stock, $0.001 par value;
5,000 shares authorized; no shares issued or outstanding
-
-
Common stock, $0.001 par value; 150,000 shares authorized; 55,122
and 49,148 shares issued and 55,094 and 49,120 shares outstanding
as of September 30, 2024 and December 31, 2023, respectively
55
49
Additional paid-in capital
1,377,825
1,059,751
Accumulated other comprehensive income
2,620
1,165
Accumulated deficit
(711,859
)
(599,067
)
Less treasury stock (28 shares as of September 30, 2024 and
December 31, 2023)
(132
)
(132
)
Total stockholders' equity
668,509
461,766
Total liabilities and stockholders' equity
$
926,543
$
940,414
GLAUKOS CORPORATION GAAP to Non-GAAP
Reconciliations (in thousands, except per share amounts and
percentage data) (unaudited) Q3 2024 Q3
2023 GAAP Adjustments Non-GAAP
GAAP Adjustments
Non-GAAP Cost of sales
$
22,584
$
(5,523
)
(a)
$
17,061
$
18,510
$
(5,523
)
(a)
$
12,987
Gross Margin
76.6%
5.8%
82.4%
76.3%
7.1%
83.4%
Operating expenses: Selling,
general and administrative
$
64,000
$
(705
)
(b)
$
63,295
$
54,247
$
(705
)
(b)
$
53,542
Loss from operations
$
(24,660
)
$
6,228
$
(18,432
)
$
(28,010
)
$
6,228
$
(21,782
)
Net loss
$
(21,409
)
$
6,228
(c)
$
(15,181
)
$
(30,444
)
$
6,228
(c)
$
(24,216
)
Basic and diluted net loss per share
$
(0.39
)
$
0.11
$
(0.28
)
$
(0.63
)
$
0.13
$
(0.50
)
(a)
Cost of sales adjustment related
to amortization of developed technology intangible assets
associated with the acquisition of Avedro, Inc. (Avedro) of $5.5
million.
(b)
Avedro acquisition-related
amortization expense of customer relationship intangible assets of
$0.7 million.
(c)
Includes total tax effect for
non-GAAP pre-tax adjustments. For non-GAAP adjustments associated
with the U.S., the tax effect is $0 given the Company's U.S.
taxable loss positions in both 2024 and 2023.
GLAUKOS CORPORATION GAAP to Non-GAAP
Reconciliations (in thousands, except per share amounts and
percentage data) (unaudited) Year-to-Date Q3
2024 Year-to-Date Q3 2023 GAAP Adjustments
Non-GAAP
GAAP Adjustments Non-GAAP Cost of sales
$
65,392
$
(16,569
)
(a)
$
48,823
$
56,684
$
(16,569
)
(a)
$
40,115
Gross Margin
76.5%
5.9%
82.4%
75.6
%
7.1%
82.7%
Operating expenses: Selling,
general and administrative
$
192,163
$
(2,115
)
(b)
$
190,048
$
161,034
$
(2,115
)
(b)
$
158,919
Loss from operations
$
(93,700
)
$
18,684
$
(75,016
)
$
(90,078
)
$
18,684
$
(71,394
)
Non-operating income (expense):
Charges associated with convertible senior notes
$
(18,012
)
$
18,012
(c)
$
-
$
-
$
-
$
-
Net loss
$
(112,792
)
$
36,696
(d)
$
(76,096
)
$
(97,882
)
$
18,684
(d)
$
(79,198
)
Basic and diluted net loss per share
$
(2.18
)
$
0.71
$
(1.47
)
$
(2.03
)
$
0.39
$
(1.64
)
(a)
Cost of sales adjustment related
to amortization of developed technology intangible assets
associated with the acquisition of Avedro, Inc. (Avedro) of $16.6
million.
(b)
Avedro acquisition-related
amortization expense of customer relationship intangible assets of
$2.1 million.
(c)
Expenses associated with the
exchange of convertible senior notes, consisting of a non-cash
inducement charge of $17.4 million and direct transaction costs of
$0.6 million.
(d)
Includes total tax effect for
non-GAAP pre-tax adjustments. For non-GAAP adjustments associated
with the U.S., the tax effect is $0 given the Company's U.S.
taxable loss positions in both 2024 and 2023.
Reported Sales vs. Prior Periods (in thousands)
Year-over-Year Percent Change Quarter-over-Quarter
Percent Change
3Q 2024
3Q 2023
2Q 2024
Reported
Operations (1)
Currency (2)
Reported
Operations (1)
Currency (2)
International Glaucoma
$
24,467
$
20,280
$
26,131
20.6%
20.9%
(0.2%)
(6.4%)
(8.2%)
1.8%
Total Net Sales
$
96,670
$
78,048
$
95,690
23.9%
23.9%
(0.0%)
1.0%
0.5%
0.5%
(1) Operational growth excludes the effect of translational
currency (2) Calculated by converting the current period numbers
using the prior period’s average foreign exchange rates
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104442542/en/
Chris Lewis Vice President, Investor Relations & Corporate
Affairs (949) 481-0510 clewis@glaukos.com
Glaukos (NYSE:GKOS)
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