BIOLASE DELIVERS 26% REVENUE GROWTH YEAR OVER YEAR IN THIRD QUARTER AND RAISES 2022 FULL YEAR REVENUE GUIDANCE
BIOLASE announced its Q3 2022 financial results, reporting a 26% increase in total revenue at $12.0 million compared to the previous year. U.S. laser sales surged 35%, and consumable sales rose 22%. The company noted that 90% of U.S. Waterlase sales came from new customers. Despite this growth, gross margin fell to 20% due to a $1.7 million inventory charge and increased operating expenses of $10.1 million, leading to a net loss of $8.4 million. Looking ahead, BIOLASE expects Q4 revenue to exceed $13 million, raising its full-year revenue guidance by at least 20%.
- Total revenue increased 26% year over year to $12.0 million.
- U.S. laser sales rose 35%, and consumable sales grew 22%.
- Over 90% of U.S. Waterlase sales came from new customers.
- Fourth quarter revenue is anticipated to exceed $13 million, representing at least 5% growth year over year.
- Full-year revenue guidance increased to at least 20% growth from 2021.
- Gross margin decreased to 20% from 51% due to supply chain issues and an inventory charge.
- Operating expenses rose to $10.1 million, leading to a larger operating loss of $7.7 million.
- Net loss increased to $8.4 million, compared to $3.3 million the previous year.
LAKE FOREST, Calif., Nov. 10, 2022 /PRNewswire/ -- BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for the third quarter ended September 30, 2022.
2022 Third Quarter Highlights
- Total revenue was
$12.0 million , up26% year over year - U.S. laser sales increased
35% year over year and U.S. consumable sales increased22% year over year, driven by increased procedures using BIOLASE lasers - Continued momentum with new customers and dental specialists with over
90% of U.S. Waterlase sales coming from new customers and approximately40% of U.S. Waterlase sales coming from dental specialists - Waterlase Exclusive Trial Program success rate remained at over
50% year to date, highlighting the program's success
"I am pleased to report continued increasing demand for our industry leading lasers, which is being driven by the execution of our growth strategy," commented John Beaver, President, and Chief Executive Officer. "Our total revenue increased
"With less than
2022 Third Quarter Financial Results
Net revenue for the third quarter of 2022 was
Gross margin for the third quarter of 2022 was
The Company reported cash and cash equivalents of
Net Loss and Adjusted EBITDA
The reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company's non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company's Adjusted EBITDA and Adjusted EBITDA per share.
Net loss for the third quarter of 2022 was
2022 Fourth Quarter and Full Year Revenue Guidance
Based on currently available information and the continued operating momentum the Company has experienced through the first nine months of the year, BIOLASE is anticipating fourth quarter net revenue to exceed
Conference Call Information
BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the third quarter ended September 30, 2022, and to answer questions. To access the live call, dial 1-888-506-0062 (U.S.) or +1 973-528-0011 (International) and provide the following code: 720380.
A live and archived webcast of the conference call will be accessible on the BIOLASE Investor Relations page. In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. To access the call replay dial 1-877-481-4010 or +1 919-882-2331 (International) and enter replay passcode: 46951.
About BIOLASE
BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE's proprietary laser products incorporate approximately 302 patented and 28 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. From 1998 through December 31, 2021, BIOLASE has sold over 43,300 laser systems in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.
For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, regarding BIOLASE's expected revenue and revenue growth. Forward-looking statements can be identified through the use of words such as "may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, substantial doubt regarding BIOLASE's ability to continue as a going concern, and those other risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's most recent annual report on Form 10-K and quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.
For further information, please contact:
EVC Group LLC
Michael Polyviou / Todd Kehrli
(732) 933-2754
mpolyviou@evcgroup.com / tkehrli@evcgroup.com
Tables to Follow
BIOLASE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net revenue | $ | 12,010 | $ | 9,531 | $ | 34,411 | $ | 26,780 | ||||||||
Cost of revenue | 9,565 | 4,689 | 22,096 | 15,157 | ||||||||||||
Gross profit | 2,445 | 4,842 | 12,315 | 11,623 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 5,008 | 3,451 | 15,224 | 10,315 | ||||||||||||
General and administrative | 3,109 | 2,479 | 8,825 | 8,613 | ||||||||||||
Engineering and development | 1,979 | 1,540 | 5,177 | 4,506 | ||||||||||||
Loss on patent litigation settlement | — | 29 | — | 190 | ||||||||||||
Total operating expenses | 10,096 | 7,499 | 29,226 | 23,624 | ||||||||||||
Loss from operations | (7,651) | (2,657) | (16,911) | (12,001) | ||||||||||||
Loss on foreign currency transactions | (329) | (36) | (552) | (172) | ||||||||||||
Interest expense, net | (424) | (569) | (1,287) | (1,727) | ||||||||||||
Gain on debt forgiveness | — | — | — | 3,014 | ||||||||||||
Non-operating income (loss), net | (753) | (605) | (1,839) | 1,115 | ||||||||||||
Loss before income tax provision | (8,404) | (3,262) | (18,750) | (10,886) | ||||||||||||
Income tax (provision) benefit | 17 | (14) | (23) | 7 | ||||||||||||
Net loss | (8,387) | (3,276) | (18,773) | (10,879) | ||||||||||||
Other comprehensive loss items: | ||||||||||||||||
Foreign currency translation adjustments | (152) | (90) | (415) | (173) | ||||||||||||
Comprehensive loss | $ | (8,539) | $ | (3,366) | $ | (19,188) | $ | (11,052) | ||||||||
Net loss | $ | (8,387) | $ | (3,276) | $ | (18,773) | $ | (10,879) | ||||||||
Deemed dividend on convertible preferred stock | — | (9) | (217) | (546) | ||||||||||||
Net loss attributable to common stockholders | $ | (8,387) | $ | (3,285) | $ | (18,990) | $ | (11,425) | ||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and Diluted | $ | (1.10) | $ | (0.54) | $ | (2.85) | $ | (1.96) | ||||||||
Shares used in the calculation of net loss per share: | ||||||||||||||||
Basic and Diluted | 7,615 | 6,078 | 6,661 | 5,832 | ||||||||||||
BIOLASE, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except per share data) | ||||||||
September 30, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 9,960 | $ | 29,972 | ||||
Restricted cash | — | 203 | ||||||
Accounts receivable, less allowance of | 4,846 | 4,238 | ||||||
Inventory | 16,427 | 12,929 | ||||||
Prepaid expenses and other current assets | 2,648 | 2,012 | ||||||
Total current assets | 33,881 | 49,354 | ||||||
Property, plant, and equipment, net | 3,915 | 1,067 | ||||||
Goodwill | 2,926 | 2,926 | ||||||
Right of use asset | 1,909 | 1,717 | ||||||
Other assets | 234 | 220 | ||||||
Total assets | $ | 42,865 | $ | 55,284 | ||||
LIABILITIES, REDEEMABLE PREFERRED STOCK AND | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,974 | $ | 3,309 | ||||
Accrued liabilities | 6,919 | 8,276 | ||||||
Deferred revenue, current portion | 1,870 | 2,259 | ||||||
Total current liabilities | 13,763 | 13,844 | ||||||
Deferred revenue | 347 | 329 | ||||||
Warranty accrual | 416 | 521 | ||||||
Non current term loans, net of discount | 12,793 | 13,603 | ||||||
Non current operating lease liability | 1,428 | 1,449 | ||||||
Other liabilities | 260 | 330 | ||||||
Total liabilities | 29,007 | 30,076 | ||||||
Stockholders' equity: | ||||||||
Series F Preferred stock, par value | — | 34 | ||||||
Common stock, par value | 7 | 6 | ||||||
Additional paid-in capital | 301,196 | 293,325 | ||||||
Accumulated other comprehensive loss | (1,038) | (623) | ||||||
Accumulated deficit | (286,307) | (267,534) | ||||||
Total stockholders' equity | 13,858 | 25,208 | ||||||
Total liabilities, redeemable preferred stock and stockholders' equity | $ | 42,865 | $ | 55,284 | ||||
BIOLASE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (18,773) | $ | (10,879) | ||||
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||||||||
Depreciation and amortization | 369 | 281 | ||||||
Provision for bad debts | 56 | (162) | ||||||
Provision for inventory excess and obsolescence | 245 | — | ||||||
Inventory write-offs and disposals | 1,486 | (117) | ||||||
Amortization of discount on lines of credit | 71 | 126 | ||||||
Amortization of debt issuance costs | 126 | 290 | ||||||
Patent litigation mark-to-market | — | 190 | ||||||
Issuance of restricted shares | — | 164 | ||||||
Stock-based compensation | 1,691 | 1,488 | ||||||
Gain on debt forgiveness | — | (3,014) | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (664) | (417) | ||||||
Inventory | (5,229) | (2,788) | ||||||
Prepaid expenses and other current assets | (850) | 235 | ||||||
Accounts payable and accrued liabilities | 664 | 705 | ||||||
Deferred revenue | (371) | 292 | ||||||
Net cash and cash equivalents used in operating activities | (21,179) | (13,606) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property, plant, and equipment | (3,256) | (396) | ||||||
Net cash and cash equivalents used in investing activities | (3,256) | (396) | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from the sale of common stock | 5,635 | 13,291 | ||||||
Payments of equity offering costs | — | (6) | ||||||
Principal payment on loan | (1,000) | — | ||||||
Proceeds from the exercise of common stock warrants | — | 16,560 | ||||||
Payment of debt issuance costs | — | (25) | ||||||
Proceeds from exercise of stock options | — | 66 | ||||||
Net cash and cash equivalents provided by financing activities | 4,635 | 29,886 | ||||||
Effect of exchange rate changes | (415) | (171) | ||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (20,215) | 15,713 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 30,175 | 17,876 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 9,960 | $ | 33,589 | ||||
Supplemental cash flow disclosure: | ||||||||
Cash paid for interest | $ | 1,110 | $ | 1,328 | ||||
Cash received for interest | $ | 23 | $ | 44 | ||||
Cash paid for income taxes | $ | 39 | $ | 154 | ||||
Cash paid for operating leases | $ | 219 | $ | 185 | ||||
Non-cash settlement of liability | $ | — | $ | 510 | ||||
Non-cash right-of-use assets obtained in exchange for lease obligation | $ | 562 | $ | 48 | ||||
Deemed dividend on preferred stock | $ | 217 | $ | 546 | ||||
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP"), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company's ongoing core operating performance than their GAAP equivalents.
Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, loss on patent litigation settlement, stock-based and other non-cash compensation, allowance for doubtful accounts, increase in inventory reserves, and gain on debt forgiveness. Management uses Adjusted EBITDA in its evaluation of the Company's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.
BIOLASE, INC. Reconciliation of GAAP Net Loss to Adjusted EBITDA and GAAP Net Loss Per Share to Adjusted EBITDA Per Share (Unaudited, in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
GAAP net loss attributable to common stockholders | $ | (8,387) | $ | (3,285) | $ | (18,990) | $ | (11,425) | ||||||||
Deemed dividend on convertible preferred stock | — | 9 | 217 | 546 | ||||||||||||
GAAP net loss | $ | (8,387) | $ | (3,276) | $ | (18,773) | $ | (10,879) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 424 | 569 | 1,287 | 1,727 | ||||||||||||
Income tax provision (benefit) | (17) | 14 | 23 | (7) | ||||||||||||
Depreciation and amortization | 122 | 101 | 369 | 281 | ||||||||||||
Change in allowance for doubtful accounts | (87) | (83) | 56 | (162) | ||||||||||||
Loss on patent litigation settlement | — | 29 | — | 190 | ||||||||||||
Stock-based and other non-cash compensation | 591 | 192 | 1,691 | 1,488 | ||||||||||||
Increase in inventory reserves | 1,731 | — | 1,731 | — | ||||||||||||
Gain on debt forgiveness | — | — | — | (3,014) | ||||||||||||
Adjusted EBITDA | $ | (5,623) | $ | (2,454) | $ | (13,616) | $ | (10,376) | ||||||||
GAAP net loss attributable to common stockholders | $ | (1.10) | $ | (0.54) | $ | (2.85) | $ | (1.96) | ||||||||
Deemed dividend on convertible preferred stock | — | — | 0.03 | 0.09 | ||||||||||||
GAAP net loss per share, basic and diluted | $ | (1.10) | $ | (0.54) | $ | (2.82) | $ | (1.87) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 0.05 | 0.10 | 0.20 | 0.30 | ||||||||||||
Income tax provision (benefit) | — | — | — | — | ||||||||||||
Depreciation and amortization | 0.02 | 0.02 | 0.06 | 0.05 | ||||||||||||
Change in allowance for doubtful accounts | (0.01) | (0.01) | 0.01 | (0.03) | ||||||||||||
Loss on patent litigation settlement | — | — | — | 0.03 | ||||||||||||
Stock-based and other non-cash compensation | 0.08 | 0.03 | 0.25 | 0.26 | ||||||||||||
Increase in inventory reserves | 0.22 | — | 0.26 | — | ||||||||||||
Gain on debt forgiveness | — | — | — | (0.52) | ||||||||||||
Adjusted EBITDA per share, basic and diluted | $ | (0.74) | $ | (0.40) | $ | (2.04) | $ | (1.78) | ||||||||
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SOURCE BIOLASE, Inc.
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