BIOLASE REPORTS RECORD CONSUMABLE SALES AS TOTAL SECOND QUARTER REVENUE INCREASES 17% YEAR OVER YEAR
- BIOLASE reports positive financial results for Q2 2023, with total revenue of $14.3 million, up 17% YoY. Consumable sales reach record $4.1 million, increasing 36% YoY. Gross margin improves to 43%. Company expects improved net income and positive adjusted EBITDA for H2 2023.
- None.
Continues to Experience Positive Momentum and Expects to Achieve Improved Net Income and Positive Adjusted EBITDA for the Second Half of 2023
Second Quarter Financial Highlights
- Total revenue was
$14.3 million 17% year over year, and the highest quarterly revenue since the fourth quarter of 2015 - Consumable sales reached a record
$4.1 million 36% year over year, driven by rising utilization of BIOLASE laser systems - Generated increased adoption of its industry-leading laser, with approximately
69% ofU.S. Waterlase sales coming from new customers and approximately one-third from dental specialists - Gross margin improved 100 basis points to
43% - Waterlase Trial Program's ("WTP") year-to-date sales conversion success rate of approximately
56% surpassed the 2022 full year success rate by10%
"Although we faced some macroeconomic hurdles during the quarter, we have made many improvements in the business that has led to improved financial performance as we continue to show sustainable growth and progress toward positive EBITDA performance," commented John Beaver, President and Chief Executive Officer of BIOLASE. "Our second quarter performance represents our tenth consecutive quarter of year-over-year revenue growth and demonstrates that our efforts to raise awareness of our industry-leading dental lasers continue to gain traction. Furthermore, we reported record consumable revenue, growing an impressive
"Operationally, we achieved a WTP conversion success rate of approximately
"Concurrent with our revenue growth, we demonstrated continued improvement of our bottom line, and we believe the cost-saving initiatives we implemented during the quarter will result in additional annualized savings of
Second Quarter Financial Results
Net revenue for the quarter ended June 30, 2023 was
Gross margin for the quarter ended June 30, 2023 was
The Company had cash and cash equivalents of approximately
Net Loss and Adjusted EBITDA
The Non-GAAP Financial Measures at the end of this news release provide 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 attributable to common stockholders for the quarter ended June 30, 2023 was
2023 Full Year Financial Guidance
BIOLASE is updating its guidance and now expects revenue for the second half of the year to be 15
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 second quarter ended June 30, 2023, and to answer questions. To access the live call, dial 1-888-506-0062 (
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: 48764.
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 259 active patents and 24 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times as of December 31, 2022. 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, 2022, BIOLASE has sold over 45,500 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 Securities 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, 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, inability to raise additional capital on terms acceptable to BIOLASE 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net revenue | $ | 14,286 | $ | 12,235 | $ | 24,753 | $ | 22,401 | ||||||||
Cost of revenue | 8,168 | 7,094 | 15,299 | 12,531 | ||||||||||||
Gross profit | 6,118 | 5,141 | 9,454 | 9,870 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 6,189 | 5,402 | 10,812 | 10,216 | ||||||||||||
General and administrative | 2,357 | 3,141 | 4,815 | 5,717 | ||||||||||||
Engineering and development | 1,444 | 1,653 | 2,991 | 3,197 | ||||||||||||
Total operating expenses | 9,990 | 10,196 | 18,618 | 19,130 | ||||||||||||
Loss from operations | (3,872) | (5,055) | (9,164) | (9,260) | ||||||||||||
Loss on foreign currency transactions | (235) | (103) | (215) | (223) | ||||||||||||
Interest expense, net | (583) | (430) | (1,160) | (863) | ||||||||||||
Other income (expenses), net | (147) | — | (147) | — | ||||||||||||
Non-operating loss, net | (965) | (533) | (1,522) | (1,086) | ||||||||||||
Loss before income tax provision | (4,837) | (5,588) | (10,686) | (10,346) | ||||||||||||
Income tax provision | (31) | (23) | (31) | (40) | ||||||||||||
Net loss | (4,868) | (5,611) | (10,717) | (10,386) | ||||||||||||
Other comprehensive loss items: | ||||||||||||||||
Foreign currency translation adjustments | 39 | (222) | 119 | (263) | ||||||||||||
Comprehensive loss | $ | (4,829) | $ | (5,833) | $ | (10,598) | $ | (10,649) | ||||||||
Net loss | $ | (4,868) | $ | (5,611) | $ | (10,717) | $ | (10,386) | ||||||||
Deemed dividend on convertible preferred stock | — | — | — | (217) | ||||||||||||
Net loss attributable to common stockholders | $ | (4,868) | $ | (5,611) | $ | (10,717) | $ | (10,603) | ||||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||
Basic and Diluted | $ | (8.93) | $ | (91.98) | $ | (24.52) | $ | (173.82) | ||||||||
Shares used in the calculation of net loss per share: | ||||||||||||||||
Basic and Diluted | 545 | 61 | 437 | 61 | ||||||||||||
BIOLASE, INC. CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except per share data) | ||||||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,930 | $ | 4,181 | ||||
Accounts receivable, less allowance of | 5,717 | 5,841 | ||||||
Inventory | 13,330 | 15,884 | ||||||
Prepaid expenses and other current assets | 2,170 | 3,053 | ||||||
Total current assets | 28,147 | 28,959 | ||||||
Property, plant, and equipment, net | 6,371 | 4,278 | ||||||
Goodwill | 2,926 | 2,926 | ||||||
Right-of-use assets, leases | 1,910 | 1,768 | ||||||
Other assets | 279 | 255 | ||||||
Total assets | $ | 39,633 | $ | 38,186 | ||||
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,314 | $ | 5,786 | ||||
Accrued liabilities | 7,734 | 9,210 | ||||||
Deferred revenue, current portion | 2,236 | 2,111 | ||||||
Current portion of term loans, net of discount | 2,100 | 700 | ||||||
Total current liabilities | 18,384 | 17,807 | ||||||
Deferred revenue | 311 | 418 | ||||||
Warranty accrual | 397 | 360 | ||||||
Non-current term loans, net of discount | 11,902 | 13,091 | ||||||
Non-current operating lease liability | 1,219 | 1,259 | ||||||
Other liabilities | 79 | 362 | ||||||
Total liabilities | 32,292 | 33,297 | ||||||
Mezzanine Equity | ||||||||
Series I Preferred stock, par value | — | — | ||||||
Series H Convertible Preferred stock, par value | 720 | — | ||||||
Total mezzanine equity | 720 | — | ||||||
Stockholders' equity: | ||||||||
Common stock, par value | 1 | — | ||||||
Additional paid-in capital | 314,119 | 301,790 | ||||||
Accumulated other comprehensive loss | (614) | (733) | ||||||
Accumulated deficit | (306,885) | (296,168) | ||||||
Total stockholders' equity | 6,621 | 4,889 | ||||||
Total liabilities, convertible redeemable preferred stock and stockholders' equity | $ | 39,633 | $ | 38,186 | ||||
BIOLASE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (10,717) | $ | (10,386) | ||||
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: | ||||||||
Depreciation and amortization | 1,573 | 247 | ||||||
Provision for bad debts | 42 | 143 | ||||||
Inventory write-offs and disposals | — | (42) | ||||||
Amortization of debt issuance costs | 214 | 131 | ||||||
Change in fair value of warrants | (78) | — | ||||||
Issuance costs for warrants | 224 | — | ||||||
Stock-based compensation | 775 | 1,100 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 82 | (1,986) | ||||||
Inventory | (163) | (3,602) | ||||||
Prepaid expenses and other current assets | 713 | (236) | ||||||
Accounts payable and accrued liabilities | (1,903) | (232) | ||||||
Deferred revenue | 18 | 230 | ||||||
Net cash and cash equivalents used in operating activities | (9,220) | (14,633) | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property, plant, and equipment | (944) | (578) | ||||||
Net cash and cash equivalents used in investing activities | (944) | (578) | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from the sale of common stock and pre-funded warrants, net of fees | 8,502 | 5,849 | ||||||
Proceeds from the sale of Series H Convertible Preferred Stock, net of fees | 2,738 | — | ||||||
Proceeds from the sale of Series H warrants, net of fees | 918 | — | ||||||
Principal payment on loan | — | (1,000) | ||||||
Proceeds from the exercise of warrants | 635 | — | ||||||
Net cash and cash equivalents provided by financing activities | 12,793 | 4,849 | ||||||
Effect of exchange rate changes | 120 | (264) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 2,749 | (10,626) | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 4,181 | 30,175 | ||||||
Cash and cash equivalents, end of period | $ | 6,930 | $ | 19,549 | ||||
Supplemental cash flow disclosure: | ||||||||
Cash paid for interest | $ | 930 | $ | 743 | ||||
Cash received for interest | $ | 5 | $ | 17 | ||||
Cash paid for income taxes | $ | 12 | $ | 46 | ||||
Cash paid for operating leases | $ | 159 | $ | 135 | ||||
Non-cash right-of-use assets obtained in exchange for lease obligation | $ | 483 | $ | 532 | ||||
Deemed dividend on preferred stock | $ | — | $ | 217 | ||||
Common stock issued upon exercise of preferred stock | $ | 10,980 | $ | — | ||||
Non-GAAP Financial Measures
In addition to the financial information prepared in conformity with generally accepted accounting principles in the
Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, stock-based and other non-cash compensation, severance expense, and the change in allowance for doubtful accounts. 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP net loss attributable to common stockholders | $ | (4,868) | $ | (5,611) | $ | (10,717) | $ | (10,603) | ||||||||
Deemed dividend on convertible preferred stock | — | — | — | 217 | ||||||||||||
GAAP net loss | $ | (4,868) | $ | (5,611) | $ | (10,717) | $ | (10,386) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 583 | 430 | 1,160 | 863 | ||||||||||||
Income tax provision | 31 | 23 | 31 | 40 | ||||||||||||
Depreciation and amortization | 1,424 | 130 | 1,573 | 247 | ||||||||||||
Severance expense | 229 | — | 229 | — | ||||||||||||
Change in allowance for doubtful accounts | 59 | 59 | 42 | 143 | ||||||||||||
Stock-based and other non-cash compensation | 84 | 890 | 775 | 1,100 | ||||||||||||
Other (income) expense, net | 147 | — | 147 | — | ||||||||||||
Adjusted EBITDA | $ | (2,311) | $ | (4,079) | $ | (6,760) | $ | (7,993) | ||||||||
GAAP net loss attributable to common stockholders per share, basic and diluted | $ | (8.93) | $ | (91.98) | $ | (24.52) | $ | (173.82) | ||||||||
Deemed dividend on convertible preferred stock | — | — | — | 3.56 | ||||||||||||
GAAP net loss per share, basic and diluted | $ | (8.93) | $ | (91.98) | $ | (24.52) | $ | (170.26) | ||||||||
Adjustments: | ||||||||||||||||
Interest expense, net | 1.07 | 7.05 | 2.66 | 14.15 | ||||||||||||
Income tax provision | 0.06 | 0.38 | 0.07 | 0.66 | ||||||||||||
Depreciation and amortization | 2.61 | 2.13 | 3.59 | 4.05 | ||||||||||||
Severance expense | 0.42 | — | 0.52 | — | ||||||||||||
Change in allowance for doubtful accounts | 0.11 | 0.97 | 0.10 | 2.34 | ||||||||||||
Stock-based and other non-cash compensation | 0.15 | 14.58 | 1.77 | 18.03 | ||||||||||||
Other (income) expense, net | 0.27 | — | 0.34 | — | ||||||||||||
Adjusted EBITDA per share, basic and diluted | $ | (4.24) | $ | (66.87) | $ | (15.47) | $ | (131.03) | ||||||||
Other (income) expense, net for the three and six months ended June 30, 2023 relates to issuance costs from the May 2023 public offering that were allocated to the Series H warrants and immediately expensed due to the liability classification of the awards. These expenses were partially offset by gains recorded on the revaluation of these awards during the period.
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SOURCE BIOLASE, Inc.
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