Glaukos Announces Second Quarter 2024 Financial Results
-
Record net sales of
$95.7 million in Q2 2024 increased 19% year-over-year on a reported basis and 20% year-over-year on a constant currency basis. -
Glaucoma record net sales of
$75.9 million in Q2 2024 increased 23% year-over-year. -
Corneal Health net sales of$19.8 million in Q2 2024 increased 7% year-over-year. - Gross margin of approximately 76% and non-GAAP gross margin of approximately 82% in Q2 2024.
-
Raised 2024 net sales guidance to
$370 million to$376 million , compared to$357 million to$365 million previously.
“Our record second quarter results reflect successful global execution of our key strategic plans and growing momentum in our business,” said
Second Quarter 2024 Financial Results
Net sales in the second quarter of 2024 of
Gross margin for the second quarter of 2024 was approximately 76%, compared to approximately 75% in the same period in 2023. Non-GAAP gross margin for the second quarter of 2024 was approximately 82%, compared to approximately 82% in the same period in 2023.
Selling, general and administrative (SG&A) expenses for the second quarter of 2024 increased 25% to
GAAP and non-GAAP research and development (R&D) expenses for the second quarter of 2024 increased 4% to
Loss from operations in the second quarter of 2024 was
Net loss in the second quarter of 2024 was
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the second quarter of 2024 and 2023 are acquired in-process R&D (IPR&D) charges of
The company ended the second quarter of 2024 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; our ability to successfully commercialize our iDose TR therapy; the impact of general macroeconomic conditions including foreign currency fluctuations;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
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 | Six Months Ended | ||||||||||||||
|
|
||||||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||||||
Net sales |
$ |
95,690 |
|
$ |
80,399 |
|
$ |
181,312 |
|
$ |
154,298 |
|
|||
Cost of sales |
|
22,550 |
|
|
20,103 |
|
|
42,808 |
|
|
38,174 |
|
|||
Gross profit |
|
73,140 |
|
|
60,296 |
|
|
138,504 |
|
|
116,124 |
|
|||
Operating expenses: | |||||||||||||||
Selling, general and administrative |
|
66,188 |
|
|
53,137 |
|
|
128,163 |
|
|
106,787 |
|
|||
Research and development |
|
34,426 |
|
|
33,234 |
|
|
65,152 |
|
|
68,405 |
|
|||
Acquired in-process research and development |
|
2,500 |
|
|
3,000 |
|
|
14,229 |
|
|
3,000 |
|
|||
Total operating expenses |
|
103,114 |
|
|
89,371 |
|
|
207,544 |
|
|
178,192 |
|
|||
Loss from operations |
|
(29,974 |
) |
|
(29,075 |
) |
|
(69,040 |
) |
|
(62,068 |
) |
|||
Non-operating expense: | |||||||||||||||
Interest income |
|
2,828 |
|
|
1,894 |
|
|
5,911 |
|
|
3,542 |
|
|||
Interest expense |
|
(6,678 |
) |
|
(3,399 |
) |
|
(10,128 |
) |
|
(6,807 |
) |
|||
Charges associated with convertible senior notes |
|
(18,012 |
) |
|
- |
|
|
(18,012 |
) |
|
- |
|
|||
Other expense, net |
|
(1,701 |
) |
|
(1,797 |
) |
|
(2,729 |
) |
|
(1,269 |
) |
|||
Total non-operating expense |
|
(23,563 |
) |
|
(3,302 |
) |
|
(24,958 |
) |
|
(4,534 |
) |
|||
Loss before taxes |
|
(53,537 |
) |
|
(32,377 |
) |
|
(93,998 |
) |
|
(66,602 |
) |
|||
Income tax provision |
|
331 |
|
|
435 |
|
|
708 |
|
|
836 |
|
|||
Net loss |
$ |
(53,868 |
) |
$ |
(32,812 |
) |
$ |
(94,706 |
) |
$ |
(67,438 |
) |
|||
Basic and diluted net loss per share |
$ |
(1.06 |
) |
$ |
(0.68 |
) |
$ |
(1.89 |
) |
$ |
(1.40 |
) |
|||
Weighted average shares used to compute basic and diluted net loss per share |
|
50,715 |
|
|
48,281 |
|
|
50,169 |
|
|
48,082 |
|
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except par values) | |||||||
|
|
||||||
2024 |
2023 |
||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents |
$ |
68,075 |
|
$ |
93,467 |
|
|
Short-term investments |
|
193,589 |
|
|
201,964 |
|
|
Accounts receivable, net |
|
51,217 |
|
|
39,850 |
|
|
Inventory |
|
56,480 |
|
|
41,986 |
|
|
Prepaid expenses and other current assets |
|
14,420 |
|
|
18,194 |
|
|
Total current assets |
|
383,781 |
|
|
395,461 |
|
|
Restricted cash |
|
4,733 |
|
|
5,856 |
|
|
Property and equipment, net |
|
100,230 |
|
|
103,212 |
|
|
Operating lease right-of-use assets |
|
26,430 |
|
|
27,146 |
|
|
Finance lease right-of-use asset |
|
42,970 |
|
|
44,180 |
|
|
Intangible assets, net |
|
275,673 |
|
|
282,956 |
|
|
|
|
66,134 |
|
|
66,134 |
|
|
Deposits and other assets |
|
19,725 |
|
|
15,469 |
|
|
Total assets |
$ |
919,676 |
|
$ |
940,414 |
|
|
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable |
$ |
11,560 |
|
$ |
13,440 |
|
|
Accrued liabilities |
|
58,523 |
|
|
60,574 |
|
|
Total current liabilities |
|
70,083 |
|
|
74,014 |
|
|
Convertible senior notes |
|
56,692 |
|
|
282,773 |
|
|
Operating lease liability |
|
29,912 |
|
|
30,427 |
|
|
Finance lease liability |
|
70,009 |
|
|
70,538 |
|
|
Deferred tax liability, net |
|
7,142 |
|
|
7,144 |
|
|
Other liabilities |
|
20,678 |
|
|
13,752 |
|
|
Total liabilities |
|
254,516 |
|
|
478,648 |
|
|
Stockholders' equity: | |||||||
Preferred stock, |
|
- |
|
|
- |
|
|
Common stock, |
|
55 |
|
|
49 |
|
|
Additional paid-in capital |
|
1,356,819 |
|
|
1,059,751 |
|
|
Accumulated other comprehensive income |
|
2,191 |
|
|
1,165 |
|
|
Accumulated deficit |
|
(693,773 |
) |
|
(599,067 |
) |
|
Less treasury stock (28 shares as of |
|
(132 |
) |
|
(132 |
) |
|
Total stockholders' equity |
|
665,160 |
|
|
461,766 |
|
|
Total liabilities and stockholders' equity |
$ |
919,676 |
|
$ |
940,414 |
|
|
|||||||||||||||||||||||
GAAP to Non-GAAP Reconciliations | |||||||||||||||||||||||
(in thousands, except per share amounts and percentage data) | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Q2 2024 | Q2 2023 | ||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
Cost of sales |
$ |
22,550 |
|
$ |
(5,523 |
) |
(a) |
$ |
17,027 |
|
$ |
20,103 |
|
$ |
(5,523 |
) |
(a) |
$ |
14,580 |
|
|||
Gross Margin |
|
76.4 |
% |
|
5.8 |
% |
|
82.2 |
% |
|
75.0 |
% |
|
6.9 |
% |
|
81.9 |
% |
|||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative |
$ |
66,188 |
|
$ |
(705 |
) |
(b) |
$ |
65,483 |
|
$ |
53,137 |
|
$ |
(705 |
) |
(b) |
$ |
52,432 |
|
|||
Loss from operations |
$ |
(29,974 |
) |
$ |
6,228 |
|
$ |
(23,746 |
) |
$ |
(29,075 |
) |
$ |
6,228 |
|
$ |
(22,847 |
) |
|||||
Non-operating expense: | |||||||||||||||||||||||
Interest expense |
$ |
(6,678 |
) |
$ |
3,324 |
|
(c) |
$ |
(3,354 |
) |
$ |
(3,399 |
) |
$ |
- |
|
$ |
(3,399 |
) |
||||
Charges associated with convertible senior notes |
$ |
(18,012 |
) |
$ |
18,012 |
|
(d) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||
Net loss |
$ |
(53,868 |
) |
$ |
27,564 |
|
(e) |
$ |
(26,304 |
) |
$ |
(32,812 |
) |
$ |
6,228 |
|
(e) |
$ |
(26,584 |
) |
|||
Basic and diluted net loss per share |
$ |
(1.06 |
) |
$ |
0.54 |
|
$ |
(0.52 |
) |
$ |
(0.68 |
) |
$ |
0.13 |
|
$ |
(0.55 |
) |
(a) |
Cost of sales adjustment related to amortization of developed technology intangible assets associated with the acquisition of |
||||||||||
(b) |
|
||||||||||
(c) |
Acceleration of amortization of non-cash debt issuance costs associated with the exchange of convertible senior notes. | ||||||||||
(d) |
Expenses associated with the exchange of convertible senior notes, consisting of a non-cash inducement charge of |
||||||||||
(e) |
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) | |||||||||||||||||||||||
Year-to-Date Q2 2024 | Year-to-Date Q2 2023 | ||||||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
Cost of sales |
$ |
42,808 |
|
$ |
(11,046 |
) |
(a) |
$ |
31,762 |
|
$ |
38,174 |
|
$ |
(11,046 |
) |
(a) |
$ |
27,128 |
|
|||
Gross Margin |
|
76.4 |
% |
|
6.1 |
% |
|
82.5 |
% |
|
75.3 |
% |
|
7.1 |
% |
|
82.4 |
% |
|||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative |
$ |
128,163 |
|
$ |
(1,410 |
) |
(b) |
$ |
126,753 |
|
$ |
106,787 |
|
$ |
(1,410 |
) |
(b) |
$ |
105,377 |
|
|||
Loss from operations |
$ |
(69,040 |
) |
$ |
12,456 |
|
$ |
(56,584 |
) |
$ |
(62,068 |
) |
$ |
12,456 |
|
$ |
(49,612 |
) |
|||||
Non-operating expense: | |||||||||||||||||||||||
Interest expense |
$ |
(10,128 |
) |
$ |
3,324 |
|
(c) |
$ |
(6,804 |
) |
$ |
(6,807 |
) |
$ |
- |
|
$ |
(6,807 |
) |
||||
Charges associated with convertible senior notes |
$ |
(18,012 |
) |
$ |
18,012 |
|
(d) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||
Net loss |
$ |
(94,706 |
) |
$ |
33,792 |
|
(e) |
$ |
(60,914 |
) |
$ |
(67,438 |
) |
$ |
12,456 |
|
(e) |
$ |
(54,982 |
) |
|||
Basic and diluted net loss per share |
$ |
(1.89 |
) |
$ |
0.68 |
|
$ |
(1.21 |
) |
$ |
(1.40 |
) |
$ |
0.26 |
|
$ |
(1.14 |
) |
(a) |
Cost of sales adjustment related to amortization of developed technology intangible assets associated with the acquisition of |
||||||||||
(b) |
|
||||||||||
(c) |
Acceleration of amortization of non-cash debt issuance costs associated with the exchange of convertible senior notes. | ||||||||||
(d) |
Expenses associated with the exchange of convertible senior notes, consisting of a non-cash inducement charge of |
||||||||||
(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 | ||||||||||||||
2Q 2024 |
2Q 2023 |
1Q 2024 |
Reported | Operations (1) | Currency (2) | Reported | Operations (1) | Currency (2) | |||||||
International Glaucoma |
$ |
26,131 |
$ |
22,305 |
$ |
25,238 |
17.1% |
21.0% |
(3.9%) |
3.5% |
5.1% |
(1.6%) |
|||
Total |
$ |
95,690 |
|
$ |
80,399 |
|
$ |
85,622 |
|
19.0% |
20.1% |
(1.1%) |
11.8% |
12.2% |
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731358069/en/
Vice President, Investor Relations & Corporate Affairs
(949) 481-0510
clewis@glaukos.com
Source: