Axonics Reports Third Quarter 2023 Financial Results

Rhea-AI Summary

Axonics, Inc. reported quarterly revenue of $93.1 million, a 32% YoY increase. The company raised its fiscal year 2023 revenue guidance to $362 million, representing a 32% YoY growth. Net revenue in 3Q23 was $93.1 million, with gross margin at 74.2%. Adjusted EBITDA was $14.0 million, and net income was $3.9 million. Cash, cash equivalents, and short-term investments were $344.7 million as of September 30, 2023.

Positive

• Axonics reported a 32% YoY increase in quarterly revenue, reaching $93.1 million.
• The company raised its fiscal year 2023 revenue guidance to $362 million, representing a 32% YoY growth.
• Gross margin in 3Q23 was 74.2%, compared to 72.8% in the prior year period.
• Adjusted EBITDA for 3Q23 was $14.0 million, compared to $3.3 million in the prior year period.
• Net income in 3Q23 was $3.9 million, compared to a net loss of $16.3 million in the prior year period.
• Cash, cash equivalents, and short-term investments were $344.7 million as of September 30, 2023.

Negative

• None.

Generated quarterly revenue of $93.1 million, an increase of 32% year over year

Fiscal year 2023 revenue guidance increased to $362 million

IRVINE, Calif.--(BUSINESS WIRE)-- Axonics, Inc. (Nasdaq: AXNX), a global medical technology company that is developing and commercializing novel products for the treatment of bladder and bowel dysfunction, today reported financial results for the three months ended September 30, 2023.

“Our commercial team continues to execute at a high level, generating over 30% revenue growth in the third quarter,” said Raymond W. Cohen, chief executive officer. “Our growth was driven by higher utilization and share of wallet at existing customers and the onboarding of new accounts. Based on the strong results generated in the third quarter, we are raising our fiscal year 2023 revenue guidance to $362 million, representing growth of 32% year over year.”

Mr. Cohen continued, “In the third quarter, the company also generated adjusted EBITDA of $14 million and GAAP net income of $4 million, demonstrating the significant operating leverage of our business. Axonics is growing rapidly and profitably as we advance on our path to incontinence market leadership.”

3Q23 Financial Results

• Net revenue was $93.1 million in 3Q23, an increase of 32% compared to the prior year period.
  • Sacral neuromodulation revenue was $73.9 million, of which $72.2 million was generated in the U.S. and the remainder in international markets.
  • Bulkamid revenue was $19.2 million, of which $15.6 million was generated in the U.S. and the remainder in international markets.
• Gross margin was 74.2% in 3Q23 compared to 72.8% in the prior year period.
• Operating expenses were $69.8 million in 3Q23 compared to $67.6 million in the prior year period.
  • Excluding acquisition-related costs, adjusted operating expenses were $59.4 million in the prior year period.

• Adjusted EBITDA was $14.0 million in 3Q23 compared to $3.3 million in the prior year period.
• Net income was $3.9 million in 3Q23 compared to a net loss of $16.3 million in the prior year period.
• Cash, cash equivalents and short-term investments were $344.7 million as of September 30, 2023, an increase of $13.2 million compared to June 30, 2023.

Fiscal Year 2023 Revenue Guidance

Axonics has updated its fiscal year 2023 revenue guidance as follows:

• Total company revenue of $362 million, an increase of 32% compared to fiscal year 2022. This compares to prior fiscal year 2023 revenue guidance of $358 million.
  • Sacral neuromodulation revenue of $288.5 million, an increase of 30% compared to fiscal year 2022.
  • Bulkamid revenue of $73.5 million, an increase of 42% compared to fiscal year 2022.

Webcast and Conference Call

Axonics will host a conference call today at 4:30 p.m. Eastern Time to discuss financial results and recent business developments. To access the conference call by telephone, interested parties may register at the following link: Axonics 3Q23 registration.

For those not planning to ask a question, the company recommends accessing the conference call by webcast at the following link: Axonics 3Q23 webcast. A replay of the webcast will be archived in the Events section of the Axonics investor relations website.

About Axonics

Axonics is a global medical technology company that is developing and commercializing novel products for adults with bladder and bowel dysfunction. Axonics recently ranked No. 2 on the 2023 Financial Times ranking of the fastest growing companies in the Americas and No. 4 on the 2022 Deloitte Technology Fast 500.

Axonics^® sacral neuromodulation systems provide adults with overactive bladder and/or fecal incontinence with long-lived, easy to use, safe, clinically effective therapy. In addition, the company’s best-in-class urethral bulking hydrogel, Bulkamid^®, provides safe and durable symptom relief to women with stress urinary incontinence. In the U.S., moderate to severe urinary incontinence affects an estimated 28 million women and fecal incontinence affects an estimated 19 million adults. For more information, visit www.axonics.com.

Forward-Looking Statements

Statements made in this press release that relate to future plans, events, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designs,” and similar words are intended to identify forward-looking statements. While these forward-looking statements are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in Axonics filings with the Securities and Exchange Commission, all of which are available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Axonics undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Use of Non-GAAP Financial Measures

To supplement Axonics’ consolidated financial statements prepared in accordance with generally accepted accounting principles (GAAP), Axonics provides certain non-GAAP financial measures in this release as supplemental financial metrics.

Adjusted EBITDA is calculated as net income (loss) before other income/expense (including interest), income tax expense (benefit), depreciation and amortization expense, stock-based compensation expense, acquisition-related costs, acquired in-process research and development expense, loss on disposal of property and equipment, and expense related to impairment of intangible assets. Management believes that in order to properly understand short-term and long-term financial trends, investors may want to consider the impact of these excluded items in addition to GAAP measures. The excluded items vary in frequency and/or impact on our results of operations and management believes that the excluded items are typically not reflective of our ongoing core business operations and financial condition. Further, management uses adjusted EBITDA for both strategic and annual operating planning. A reconciliation of adjusted EBITDA reported in this release to the most comparable GAAP measure for the respective periods appears in the table captioned “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” later in this release.

The non-GAAP financial measures used by Axonics may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Axonics’ financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business.

Axonics, Inc. Consolidated Balance Sheets (in thousands, except share and per share data)
	September 30,				December 31,
		2023				2022
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	147,323			$	238,846
Short-term investments		197,393				118,365
Accounts receivable, net of allowance for credit losses of $380 and $321 at September 30, 2023 and December 31, 2022, respectively		48,944				44,817
Inventory, net		74,909				55,765
Prepaid expenses and other current assets		6,816				7,282
Total current assets		475,385				465,075
Property and equipment, net		6,556				6,798
Intangible assets, net		80,274				86,253
Other assets		3,245				6,813
Goodwill		95,287				94,414
Total assets	$	660,747			$	659,353
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	14,666			$	9,070
Accrued liabilities		5,962				6,520
Accrued compensation and benefits		12,994				15,495
Operating lease liabilities, current portion		1,971				1,562
Other current liabilities		—				32,600
Total current liabilities		35,593				65,247
Operating lease liabilities, net of current portion		876				7,555
Deferred tax liabilities, net		13,658				16,412
Total liabilities		50,127				89,214
Commitments and contingencies
Stockholders’ equity
Preferred stock, par value $0.0001 per share; 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and December 31, 2022		—				—
Common stock, par value $0.0001, 75,000,000 shares authorized at September 30, 2023 and December 31, 2022; 50,669,203 and 49,546,727 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively		5				5
Additional paid-in capital		1,022,052				969,545
Accumulated deficit		(386,926	)			(374,264	)
Accumulated other comprehensive loss		(24,511	)			(25,147	)
Total stockholders’ equity		610,620				570,139
Total liabilities and stockholders’ equity	$	660,747			$	659,353

Axonics, Inc. Consolidated Statements of Comprehensive Loss (in thousands, except share and per share data) (unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Net revenue	$	93,100			$	70,384			$	256,644			$	187,784
Cost of goods sold		23,996				19,124				64,850				53,086
Gross profit		69,104				51,260				191,794				134,698
Operating expenses
Research and development		8,167				7,936				25,172				26,307
General and administrative		11,778				9,389				34,659				29,974
Sales and marketing		47,544				39,751				134,468				112,195
Amortization of intangible assets		2,302				2,317				6,803				7,112
Acquisition-related costs		—				8,242				2,368				20,447
Acquired in-process research & development		—				—				15,447				—
Total operating expenses		69,791				67,635				218,917				196,035
Loss from operations		(687	)			(16,375	)			(27,123	)			(61,337	)
Other income (expense)
Interest and other income		4,271				1,501				12,149				1,904
Interest and other expense		(83	)			(1,898	)			774				(3,026	)
Other income (expense), net		4,188				(397	)			12,923				(1,122	)
Income (loss) before income tax benefit		3,501				(16,772	)			(14,200	)			(62,459	)
Income tax benefit		(427	)			(520	)			(1,538	)			(2,096	)
Net income (loss)		3,928				(16,252	)			(12,662	)			(60,363	)
Foreign currency translation adjustment		(6,185	)			(12,057	)			636				(29,625	)
Comprehensive loss	$	(2,257	)		$	(28,309	)		$	(12,026	)		$	(89,988	)
Net income (loss) per share, basic	$	0.08			$	(0.34	)		$	(0.26	)		$	(1.31	)
Weighted-average shares used to compute basic net income (loss) per share		49,244,981				47,208,192				48,973,252				46,185,209
Net income (loss) per share, diluted	$	0.08			$	(0.34	)		$	(0.26	)		$	(1.31	)
Weighted-average shares used to compute diluted net income (loss) per share		50,086,491				47,208,192				48,973,252				46,185,209

Axonics, Inc. Net Revenue by Product and Region (in thousands) (unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Sacral neuromodulation
United States	$	72,212			$	55,610			$	198,270			$	147,793
International		1,737				1,249				5,025				3,894
Sacral neuromodulation total	$	73,949			$	56,859			$	203,295			$	151,687
Bulkamid
United States	$	15,579			$	11,045			$	41,998			$	27,837
International		3,572				2,480				11,351				8,260
Bulkamid total	$	19,151			$	13,525			$	53,349			$	36,097
Total net revenue	$	93,100			$	70,384			$	256,644			$	187,784

Axonics, Inc. Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (in thousands) (unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
GAAP Net income (loss)	$	3,928			$	(16,252	)		$	(12,662	)		$	(60,363	)
Non-GAAP Adjustments
Interest and other income		(4,271	)			(1,501	)			(12,149	)			(1,904	)
Interest and other expense		83				1,898				(774	)			3,026
Income tax benefit		(427	)			(520	)			(1,538	)			(2,096	)
Depreciation and amortization expense		3,254				2,921				9,295				8,841
Stock-based compensation expense		11,470				8,218				33,388				23,261
Acquisition-related costs		—				8,242				2,368				20,447
Acquired in-process research & development		—				—				15,447				—
Impairment expense		—				287				—				287
Adjusted EBITDA	$	14,037			$	3,293			$	33,375			$	(8,501	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231030019757/en/

Axonics contact:

Neil Bhalodkar

949-336-5293

IR@axonics.com

Source: Axonics, Inc.

FAQ

What was Axonics' quarterly revenue?

Axonics reported quarterly revenue of $93.1 million.

What is Axonics' fiscal year 2023 revenue guidance?

Axonics raised its fiscal year 2023 revenue guidance to $362 million.

What was Axonics' gross margin in 3Q23?

Axonics' gross margin in 3Q23 was 74.2%.

What was Axonics' adjusted EBITDA for 3Q23?

Axonics' adjusted EBITDA for 3Q23 was $14.0 million.

What was Axonics' net income in 3Q23?

Axonics' net income in 3Q23 was $3.9 million.

What was Axonics' cash, cash equivalents, and short-term investments as of September 30, 2023?

Axonics' cash, cash equivalents, and short-term investments were $344.7 million as of September 30, 2023.