Glaukos Announces Fourth Quarter and Full Year 2023 Financial Results
-
Record net sales of
$82.4 million in Q4 2023 increased 16% year-over-year on a reported basis and 15% year-over-year on a constant currency basis. -
Glaucoma net sales of
$60.6 million in Q4 2023 increased 15% year-over-year. -
Corneal Health net sales of$21.8 million in Q4 2023 increased 19% year-over-year. - Gross margin of approximately 77% and non-GAAP gross margin of approximately 84% in Q4 2023.
-
Net sales of
$314.7 million in FY 2023 increased 11% year-over-year on a reported basis and 12% year-over-year on a constant currency basis. -
Reaffirmed 2024 net sales guidance of
$350 million to$360 million .
“Our record fourth quarter results cap off a successful year of global execution and key milestone achievements, leaving us well positioned to execute our strategic plans as we enter into what we believe will be a transformative period for our company over the coming years,” said
Fourth Quarter 2023 Financial Results
Net sales in the fourth quarter of 2023 of
Gross margin for the fourth quarter of 2023 was approximately 77%, compared to approximately 76% in the same period in 2022. Non-GAAP gross margin for the fourth quarter of 2023 was approximately 84%, compared to approximately 84% in the same period in 2022.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2023 increased 21% to
GAAP and non-GAAP research and development (R&D) expenses for the fourth quarter of 2023 increased 3% to
Loss from operations in the fourth quarter of 2023 was
Net loss in the fourth quarter of 2023 was
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the fourth quarter of 2023 is an acquired in-process R&D (IPR&D) charge of
Full Year 2023 Financial Results
Net sales in 2023 of
Gross margin for 2023 was approximately 76%, compared to approximately 76% in 2022. Non-GAAP gross margin for 2023 was approximately 83%, compared to approximately 83% in 2022.
SG&A expenses in 2023 increased 16% to
R&D expenses in 2023 rose 13% to
Loss from operations in 2023 was
Net loss in 2023 was
During 2022, the company received a
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for 2023 and 2022 are acquired IPR&D charges of
The company ended the fourth quarter of 2023 with approximately
2024 Revenue Guidance
The company expects 2024 net sales to be in the range of
Webcast & Conference Call
The company will host a conference call and simultaneous webcast today at
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
About
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, uncertainties regarding the impact of the COVID-19 pandemic or other future public health crises on our business; the impact of general macroeconomic conditions including foreign currency fluctuations; the reduced physician fee and ASC facility fee reimbursement rate finalized by CMS for 2022 and 2023 for procedures utilizing the Company’s iStent family of products and its impact on our
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
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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) |
||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
Net sales |
$ |
82,365 |
|
$ |
71,227 |
|
$ |
314,711 |
|
$ |
282,862 |
|
||||
Cost of sales |
|
18,891 |
|
|
17,222 |
|
|
75,575 |
|
|
68,979 |
|
||||
Gross profit |
|
63,474 |
|
|
54,005 |
|
|
239,136 |
|
|
213,883 |
|
||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative |
|
63,034 |
|
|
51,927 |
|
|
224,068 |
|
|
192,925 |
|
||||
Research and development |
|
37,062 |
|
|
35,812 |
|
|
138,768 |
|
|
123,271 |
|
||||
Acquired in-process research and development |
|
2,000 |
|
|
- |
|
|
5,000 |
|
|
10,000 |
|
||||
Litigation-related settlement |
|
- |
|
|
- |
|
|
- |
|
|
(30,000 |
) |
||||
Total operating expenses |
|
102,096 |
|
|
87,739 |
|
|
367,836 |
|
|
296,196 |
|
||||
Loss from operations |
|
(38,622 |
) |
|
(33,734 |
) |
|
(128,700 |
) |
|
(82,313 |
) |
||||
Non-operating income (expense): | ||||||||||||||||
Interest income |
|
2,912 |
|
|
960 |
|
|
9,164 |
|
|
2,375 |
|
||||
Interest expense |
|
(3,428 |
) |
|
(3,409 |
) |
|
(13,633 |
) |
|
(13,720 |
) |
||||
Other income (expense), net |
|
2,420 |
|
|
5,021 |
|
|
(558 |
) |
|
(4,771 |
) |
||||
Total non-operating income (expense) |
|
1,904 |
|
|
2,572 |
|
|
(5,027 |
) |
|
(16,116 |
) |
||||
Loss before taxes |
|
(36,718 |
) |
|
(31,162 |
) |
|
(133,727 |
) |
|
(98,429 |
) |
||||
Income tax provision |
|
61 |
|
|
298 |
|
|
934 |
|
|
766 |
|
||||
Net loss |
$ |
(36,779 |
) |
$ |
(31,460 |
) |
$ |
(134,661 |
) |
$ |
(99,195 |
) |
||||
Basic and diluted net loss per share |
$ |
(0.75 |
) |
$ |
(0.66 |
) |
$ |
(2.78 |
) |
$ |
(2.09 |
) |
||||
Weighted average shares used to compute basic and diluted net loss per share |
|
48,876 |
|
|
47,738 |
|
|
48,433 |
|
|
47,444 |
|
||||
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) |
||||||||
|
|
|||||||
|
(unaudited) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
93,467 |
|
$ |
119,525 |
|
||
Short-term investments |
|
201,964 |
|
|
233,170 |
|
||
Accounts receivable, net |
|
39,850 |
|
|
36,073 |
|
||
Inventory |
|
41,986 |
|
|
37,841 |
|
||
Prepaid expenses and other current assets |
|
18,194 |
|
|
17,250 |
|
||
Total current assets |
|
395,461 |
|
|
443,859 |
|
||
Restricted cash |
|
5,856 |
|
|
7,078 |
|
||
Property and equipment, net |
|
103,212 |
|
|
94,403 |
|
||
Operating lease right-of-use asset |
|
27,146 |
|
|
25,826 |
|
||
Finance lease right-of-use asset |
|
44,180 |
|
|
46,601 |
|
||
Intangible assets, net |
|
282,956 |
|
|
307,869 |
|
||
|
|
66,134 |
|
|
66,134 |
|
||
Deposits and other assets |
|
15,469 |
|
|
10,613 |
|
||
Total assets |
$ |
940,414 |
|
$ |
1,002,383 |
|
||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
13,440 |
|
$ |
14,403 |
|
||
Accrued liabilities |
|
60,574 |
|
|
57,956 |
|
||
Total current liabilities |
|
74,014 |
|
|
72,359 |
|
||
Convertible senior notes |
|
282,773 |
|
|
281,400 |
|
||
Operating lease liability |
|
30,427 |
|
|
28,905 |
|
||
Finance lease liability |
|
70,538 |
|
|
72,172 |
|
||
Deferred tax liability, net |
|
7,144 |
|
|
7,264 |
|
||
Other liabilities |
|
13,752 |
|
|
10,278 |
|
||
Total liabilities |
|
478,648 |
|
|
472,378 |
|
||
Stockholders' equity: | ||||||||
Preferred stock, |
|
- |
|
|
- |
|
||
Common stock, |
|
49 |
|
|
48 |
|
||
Additional paid-in capital |
|
1,059,751 |
|
|
997,470 |
|
||
Accumulated other comprehensive income (loss) |
|
1,165 |
|
|
(2,975 |
) |
||
Accumulated deficit |
|
(599,067 |
) |
|
(464,406 |
) |
||
Less treasury stock (28 shares as of |
|
(132 |
) |
|
(132 |
) |
||
Total stockholders' equity |
|
461,766 |
|
|
530,005 |
|
||
Total liabilities and stockholders' equity |
$ |
940,414 |
|
$ |
1,002,383 |
|
||
GAAP to Non-GAAP Reconciliations (in thousands, except per share amounts and percentage data) (unaudited) |
||||||||||||||||||||||||
Q4 2023 | Q4 2022 | |||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Cost of sales |
$ |
18,891 |
|
$ |
(5,523 |
) |
(a) |
$ |
13,368 |
|
$ |
17,222 |
|
$ |
(5,533 |
) |
(a) |
$ |
11,689 |
|
||||
Gross Margin |
|
77.1 |
% |
|
6.7 |
% |
|
83.8 |
% |
|
75.8 |
% |
|
7.8 |
% |
|
83.6 |
% |
||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative |
$ |
63,034 |
|
$ |
(705 |
) |
(b) |
$ |
62,329 |
|
$ |
51,927 |
|
$ |
(782 |
) |
(b) |
$ |
51,145 |
|
||||
Loss from operations |
$ |
(38,622 |
) |
$ |
6,228 |
|
$ |
(32,394 |
) |
$ |
(33,734 |
) |
$ |
6,315 |
|
$ |
(27,419 |
) |
||||||
Net loss |
$ |
(36,779 |
) |
$ |
6,228 |
|
(c) |
$ |
(30,551 |
) |
$ |
(31,460 |
) |
$ |
6,315 |
|
(c) |
$ |
(25,145 |
) |
||||
Basic and diluted net loss per share |
$ |
(0.75 |
) |
$ |
0.12 |
|
$ |
(0.63 |
) |
$ |
(0.66 |
) |
$ |
0.13 |
|
$ |
(0.53 |
) |
(a) |
Cost of sales adjustments related to the acquisition of |
(b) |
|
(c) |
Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the |
GAAP to Non-GAAP Reconciliations (in thousands, except per share amounts and percentage data) (unaudited) |
||||||||||||||||||||||||
Full Year 2023 | Full Year 2022 | |||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Cost of sales |
$ |
75,575 |
|
$ |
(22,092 |
) |
(a) |
$ |
53,483 |
|
$ |
68,979 |
|
$ |
(22,166 |
) |
(a) |
$ |
46,813 |
|
||||
Gross Margin |
|
76.0 |
% |
|
7.0 |
% |
|
83.0 |
% |
|
75.6 |
% |
|
7.8 |
% |
|
83.5 |
% |
||||||
Operating expenses: | ||||||||||||||||||||||||
Selling, general and administrative |
$ |
224,068 |
|
$ |
(2,820 |
) |
(b) |
$ |
221,248 |
|
$ |
192,925 |
|
$ |
(3,315 |
) |
(b) |
$ |
189,610 |
|
||||
Research and development |
$ |
138,768 |
|
$ |
- |
|
$ |
138,768 |
|
$ |
123,271 |
|
$ |
(127 |
) |
(c) |
$ |
123,144 |
|
|||||
Litigation-related settlement |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
(30,000 |
) |
$ |
30,000 |
|
(d) |
$ |
- |
|
|||||
Loss from operations |
$ |
(128,700 |
) |
$ |
24,912 |
|
$ |
(103,788 |
) |
$ |
(82,313 |
) |
$ |
(4,392 |
) |
$ |
(86,705 |
) |
||||||
Net loss |
$ |
(134,661 |
) |
$ |
24,912 |
|
(e) |
$ |
(109,749 |
) |
$ |
(99,195 |
) |
$ |
(4,392 |
) |
(e) |
$ |
(103,587 |
) |
||||
Basic and diluted net loss per share |
$ |
(2.78 |
) |
$ |
0.51 |
|
$ |
(2.27 |
) |
$ |
(2.09 |
) |
$ |
(0.09 |
) |
$ |
(2.18 |
) |
(a) |
Cost of sales adjustments related to the acquisition of |
(b) |
|
(c) |
Stock-based compensation expense related to replacement awards from the acquisition of |
(d) |
Settlement proceeds received related to the Company’s patent infringement litigation. |
(e) |
Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the |
Reported Sales vs. Prior Periods (in thousands) | ||||||||||||||||||
Year-over-Year Percent Change | Quarter-over-Quarter Percent Change | |||||||||||||||||
4Q 2023 |
4Q 2022 |
3Q 2023 |
Reported | Operations (1) | Currency (2) | Reported | Operations (1) | Currency (2) | ||||||||||
International Glaucoma |
$ |
21,857 |
$ |
17,530 |
$ |
20,280 |
24.7 |
% |
22.5 |
% |
2.2 |
% |
7.8 |
% |
9.3 |
% |
(1.5 |
%) |
Total |
$ |
82,365 |
$ |
71,227 |
$ |
78,048 |
15.6 |
% |
15.1 |
% |
0.5 |
% |
5.5 |
% |
5.9 |
% |
(0.4 |
%) |
(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 | ||||||||||
2023 |
2022 |
Reported | Operations (1) | Currency (2) | ||||||
International Glaucoma |
$ |
85,560 |
$ |
69,577 |
23.0 |
% |
24.4 |
% |
(1.4 |
%) |
Total |
$ |
314,711 |
$ |
282,862 |
11.3 |
% |
11.6 |
% |
(0.3 |
%) |
(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/20240221978087/en/
Vice President, Investor Relations & Corporate Affairs
(949) 481-0510
clewis@glaukos.com
Source: