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 fourth quarter and full
year ended December 31, 2024. Key highlights include:
- Record net sales of $105.5 million in Q4 2024 increased 28%
year-over-year.
- Glaucoma record net sales of $84.1 million in Q4 2024 increased
39% year-over-year.
- Gross margin of approximately 73% and non-GAAP gross margin of
approximately 82% in Q4 2024.
- Net sales of $383.5 million in FY 2024 increased 22%
year-over-year.
- Introduced 2025 net sales guidance of $475 million to $485
million.
“Our record fourth quarter results cap off a successful year of
global execution of our key commercial and development plans,
leaving us well positioned to continue to drive the strong momentum
in our business this year and beyond,” 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.”
Fourth Quarter 2024 Financial Results
Net sales in the fourth quarter of 2024 of $105.5 million
increased 28%, both on a reported and constant currency basis,
compared to $82.4 million in the same period in 2023.
Gross margin for the fourth quarter of 2024 was approximately
73%, compared to approximately 77% in the same period in 2023.
Non-GAAP gross margin for the fourth quarter of 2024 was
approximately 82%, compared to approximately 84% in the same period
in 2023.
Selling, general and administrative (SG&A) expenses for the
fourth quarter of 2024 increased 9% to $69.0 million, compared to
$63.0 million in the same period in 2023. Non-GAAP SG&A
expenses for the fourth quarter of 2024 increased 10% to $68.6
million, compared to $62.3 million in the same period in 2023.
GAAP and non-GAAP research and development (R&D) expenses
for the fourth quarter of 2024 decreased 1% to $36.5 million,
compared to $37.1 million in the same period in 2023.
Loss from operations in the fourth quarter of 2024 was $28.7
million, compared to operating loss of $38.6 million in the fourth
quarter of 2023. Non-GAAP loss from operations in the fourth
quarter of 2024 was $18.3 million, compared to non-GAAP operating
loss of $32.4 million in the fourth quarter of 2023.
Net loss in the fourth quarter of 2024 was $33.6 million, or
($0.60) per diluted share, compared to net loss of $36.8 million,
or ($0.75) per diluted share, in the fourth quarter of 2023.
Non-GAAP net loss in the fourth quarter of 2024 was $22.2 million,
or ($0.40) per diluted share, compared to non-GAAP net loss of
$30.6 million, or ($0.63) per diluted share, in the fourth quarter
of 2023.
Full Year 2024 Financial Results
Net sales in 2024 of $383.5 million increased 22%, both on a
reported and constant currency basis, compared to $314.7 million in
2023.
Gross margin for 2024 was approximately 75%, compared to
approximately 76% in 2023. Non-GAAP gross margin for 2024 was
approximately 82%, compared to approximately 83% in 2023.
SG&A expenses in 2024 increased 17% to $261.2 million,
compared to $224.1 million in 2023. Non-GAAP SG&A expenses in
2024 increased 17% to $258.6 million, compared to $221.2 million in
2023.
GAAP and non-GAAP R&D expenses in 2024 decreased 2% to
$136.4 million, compared to $138.8 million in 2023.
Loss from operations in 2024 was $122.4 million, compared to
operating loss of $128.7 million in 2023. Non-GAAP loss from
operations in 2024 was $93.3 million, compared to non-GAAP
operating loss of $103.8 million in 2023.
Net loss in 2024 was $146.4 million, or ($2.77) per diluted
share, compared to net loss of $134.7 million, or ($2.78) per
diluted share, in 2023. Non-GAAP net loss in 2024 was $98.3
million, or ($1.86) per diluted share, compared to non-GAAP net
loss of $109.7 million, or ($2.27) per diluted share, in 2023.
Included in non-GAAP loss from operations, non-GAAP net loss and
non-GAAP EPS for 2024 and 2023 are acquired IPR&D charges of
$14.2 million and $5.0 million, respectively, which caused the
non-GAAP loss per diluted share to have an additional loss of
($0.27) and ($0.11) in each of these respective periods.
The company ended the fourth quarter of 2024 with approximately
$324 million in cash and cash equivalents, short-term investments
and restricted cash, and no debt.
2025 Revenue Guidance
The company expects 2025 net sales to be in the range of $475
million to $485 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, 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 September 30, 2024, which was filed with the
SEC on November 5, 2024, and our Annual Report on Form 10-K for the
year ended December 31, 2024, which is expected to be filed with
the SEC by March 3, 2025. 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; unusual non-recurring expenses associated
with inventory write-downs; 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 Year
Ended December 31, December 31,
2024
2023
2024
2023
Net sales
$
105,499
$
82,365
$
383,481
$
314,711
Cost of sales
28,635
18,891
94,027
75,575
Gross profit
76,864
63,474
289,454
239,136
Operating expenses: Selling, general and administrative
69,003
63,034
261,166
224,068
Research and development
36,527
37,062
136,425
138,768
Acquired in-process research and development
-
2,000
14,229
5,000
Total operating expenses
105,530
102,096
411,820
367,836
Loss from operations
(28,666
)
(38,622
)
(122,366
)
(128,700
)
Non-operating (expense) income : Interest income
2,494
2,912
11,105
9,164
Interest expense
(1,572
)
(3,428
)
(10,040
)
(13,633
)
Charges associated with convertible senior notes
-
-
(18,012
)
-
Other (expense) income, net
(5,950
)
2,420
(6,288
)
(558
)
Total non-operating (expense) income
(5,028
)
1,904
(23,235
)
(5,027
)
Loss before taxes
(33,694
)
(36,718
)
(145,601
)
(133,727
)
Income tax (benefit) provision
(114
)
61
771
934
Net loss
$
(33,580
)
$
(36,779
)
$
(146,372
)
$
(134,661
)
Basic and diluted net loss per share
$
(0.60
)
$
(0.75
)
$
(2.77
)
$
(2.78
)
Weighted-average shares outstanding used to compute basic
and diluted net loss per share
55,584
48,876
52,755
48,433
GLAUKOS CORPORATION CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except par values)
December 31, December 31,
2024
2023
(unaudited) Assets Current assets: Cash and cash
equivalents
$
169,626
$
93,467
Short-term investments
149,289
201,964
Accounts receivable, net
60,744
39,850
Inventory
57,678
41,986
Prepaid expenses and other current assets
12,455
18,194
Total current assets
449,792
395,461
Restricted cash
4,733
5,856
Property and equipment, net
97,867
103,212
Operating lease right-of-use asset
30,254
27,146
Finance lease right-of-use asset
41,816
44,180
Intangible assets, net
263,445
282,956
Goodwill
66,134
66,134
Deposits and other assets
20,715
15,469
Total assets
$
974,756
$
940,414
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
13,026
$
13,440
Accrued liabilities
62,099
60,574
Total current liabilities
75,125
74,014
Convertible senior notes
-
282,773
Operating lease liability
33,936
30,427
Finance lease liability
69,463
70,538
Deferred tax liability, net
6,928
7,144
Other liabilities
22,373
13,752
Total liabilities
207,825
478,648
Stockholders' equity: Preferred stock, $0.001 par value;
5,000 shares authorized; no shares issued and outstanding as of
December 31, 2024 and 2023
-
-
Common stock, $0.001 par value; 150,000 shares authorized; 56,472
and 49,148 shares issued and 56,444 and 49,120 shares outstanding
at December 31, 2024 and 2023, respectively
56
49
Additional paid-in capital
1,509,831
1,059,751
Accumulated other comprehensive income
2,615
1,165
Accumulated deficit
(745,439
)
(599,067
)
Less treasury stock (28 shares as of December 31, 2024 and 2023)
(132
)
(132
)
Total stockholders' equity
766,931
461,766
Total liabilities and stockholders' equity
$
974,756
$
940,414
GLAUKOS CORPORATION GAAP to Non-GAAP Reconciliations
(in thousands, except per share amounts and percentage data)
(unaudited) Q4 2024 Q4 2023
GAAP Adjustments Non-GAAP
GAAP Adjustments Non-GAAP
Cost of sales
$
28,635
$
(9,972
)
(a)(b)
$
18,663
$
18,891
$
(5,523
)
(a)
$
13,368
Gross Margin
72.9
%
9.4
%
82.3
%
77.1
%
6.7
%
83.8
%
Operating expenses: Selling,
general and administrative
$
69,003
$
(411
)
(c)
$
68,592
$
63,034
$
(705
)
(c)
$
62,329
Loss from operations
$
(28,666
)
$
10,383
$
(18,283
)
$
(38,622
)
$
6,228
$
(32,394
)
Non-operating (expense) income:
Other (expense) income, net
$
(5,950
)
$
951
(d)
$
(4,999
)
$
2,420
$
-
$
2,420
Net loss
$
(33,580
)
$
11,334
(e)
$
(22,246
)
$
(36,779
)
$
6,228
(e)
$
(30,551
)
Basic and diluted net loss per share
$
(0.60
)
$
0.20
$
(0.40
)
$
(0.75
)
$
0.12
$
(0.63
)
(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 in Q4 2024 and Q4 2023.
(b)
Inventory write-down charge associated with product line
optimizations of $4.4 million.
(c)
Avedro acquisition-related amortization expense of customer
relationship intangible assets of $0.4 million in Q4 2024 and $0.7
million in Q4 2023.
(d)
Remeasurement loss on derivative asset and direct transaction costs
associated with the capped call unwind agreements.
(e)
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) Full Year
2024 Full Year 2023 GAAP Adjustments
Non-GAAP
GAAP Adjustments Non-GAAP Cost of sales
$
94,027
$
(26,541
)
(a)(b)
$
67,486
$
75,575
$
(22,092
)
(a)
$
53,483
Gross Margin
75.5
%
6.9
%
82.4
%
76.0
%
7.0
%
83.0
%
Operating expenses: Selling,
general and administrative
$
261,166
$
(2,526
)
(c)
$
258,640
$
224,068
$
(2,820
)
(c)
$
221,248
Loss from operations
$
(122,366
)
$
29,067
$
(93,299
)
$
(128,700
)
$
24,912
$
(103,788
)
Non-operating expense: Charges
associated with convertible senior notes
$
(18,012
)
$
18,012
(d)
$
-
$
-
$
-
$
-
Other expense, net
$
(6,288
)
$
951
(e)
$
(5,337
)
$
(558
)
$
-
$
(558
)
Net loss
$
(146,372
)
$
48,030
(f)
$
(98,342
)
$
(134,661
)
$
24,912
(f)
$
(109,749
)
Basic and diluted net loss per share
$
(2.77
)
$
0.91
$
(1.86
)
$
(2.78
)
$
0.51
$
(2.27
)
(a)
Cost of sales adjustment related to amortization of developed
technology intangible assets associated with the acquisition of
Avedro, Inc. (Avedro) of $22.1 million in 2024 and 2023.
(b)
Inventory write-down charge associated with product line
optimizations of $4.4 million.
(c)
Avedro acquisition-related amortization expense of customer
relationship intangible assets of $2.5 million in 2024 and $2.8
million in 2023.
(d)
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.
(e)
Remeasurement loss on derivative asset and direct transaction costs
associated with the capped call unwind agreements.
(f)
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
4Q 2024
4Q 2023
3Q 2024
Reported Operations (1) Currency (2)
Reported Operations (1) Currency (2)
International Glaucoma
$
27,869
$
21,857
$
24,467
27.5
%
28.7
%
(1.2
%)
13.9
%
16.4
%
(2.5
%)
Total Net Sales
$
105,499
$
82,365
$
96,670
28.1
%
28.4
%
(0.3
%)
9.1
%
9.8
%
(0.7
%)
(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
Reported
Sales vs. Prior Periods (in thousands) Year-over-Year
Percent Change
2024
2023
Reported Operations (1) Currency (2)
International Glaucoma
$
103,705
$
85,560
21.2
%
23.0
%
(1.8
%)
Total Net Sales
$
383,481
$
314,711
21.9
%
22.4
%
(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/20250220455154/en/
Chris Lewis Vice President, Investor Relations & Corporate
Affairs (949) 481-0510 clewis@glaukos.com
Glaukos (NYSE:GKOS)
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