Establishment Labs Reports Fourth Quarter and Full Year 2021 Financial Results; Record Fourth Quarter Revenue of $35.3 Million
Establishment Labs Holdings Inc. (NASDAQ: ESTA) reported fourth-quarter 2021 revenue of $35.3 million, up 31% year-over-year, achieving a new quarterly record. The full-year revenue totaled $126.7 million, a 50% increase. Fourth-quarter gross profit was 68.6% of revenue, significantly higher than 54.3%% in 2020. For 2022, the company projects revenue of $155 million to $165 million, reflecting a 22% to 30% growth. However, operating expenses increased by 48.2% to $33.6 million.
- Fourth-quarter revenue reached $35.3 million, a record high and 31% year-over-year growth.
- Full-year revenue grew by 50% to $126.7 million.
- Gross profit margin improved to 68.6% in Q4 2021 from 54.3% in Q4 2020.
- 2022 guidance indicates projected revenue growth of 22% to 30%.
- Operating expenses surged by 48.2% to $33.6 million in Q4 2021.
- Net loss from operations increased to $9.4 million from $8.0 million in the previous year.
Fourth Quarter Highlights and Outlook
-
Fourth quarter worldwide sales of
, an increase of$35.3 million 31.0% year-over-year and a new quarterly record; consistent with preannouncement onJanuary 10, 2022 . -
2022 guidance of
to$155 million , an increase of$165 million 22% to30% over 2021. -
Gross profit for the fourth quarter was
68.6% of revenue, compared to54.3% of revenue for the same period in 2020. -
Fourth quarter operating expenses of
, an increase of$33.6 million 48.2% compared to the fourth quarter of 2020 as spending returned to more normalized levels following the global disruption in 2020. -
Cash balance of
as of$53.4 million December 31, 2021 . -
Motiva Flora® tissue expander launch in
Europe and CE mark countries ongoing. - Motiva JOY™ and Motiva MIA® development and commercialization programs progressing as planned.
-
Opened inaugural Women’s Health Hub in
Barcelona, Spain to support consumer-centric strategies. -
Timelines for
U.S. andChina market entry remain unchanged; began modular PMA submission forUS FDA approval.
“The strong growth we have seen across all areas of our business in 2021 continued in the fourth quarter,” said Juan José Chacón-Quirós, Chief Executive Officer. “Fourth quarter revenue of
“2021 was a foundational year for our company, with the launch of our Motiva Flora tissue expander and our Aesthetic BreastRecon® program; the introduction of JOY and Ergonomix2®; and the progress we made with Motiva MIA,” Mr. Chacón-Quirós continued. “These new programs are adding to the strong share gains we continue to see in our existing global markets. Regulatory and commercial timelines to begin selling Motiva implants in the
“We are defining every day what a women’s health company can do to raise the standards in breast aesthetics and reconstruction,” Mr. Chacón-Quirós concluded. “The publication of the landmark study in Nature Biomedical Engineering showing the superior biocompatibility of Motiva SmoothSilk® technology remains a watershed moment for our industry, and efforts like the new Women’s Health Hub we recently opened in
Fourth Quarter 2021 Financial Results
Total revenue for the quarter ended
Gross profit for the fourth quarter was
Total operating expenses for the fourth quarter were
SG&A expenses for the fourth quarter increased approximately
R&D expenses increased approximately
Net loss from operations for the fourth quarter was
The Company’s cash balance on
Conference Call and Webcast Information
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can find many (but not all) of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “intends to,” “would,” “will,” “may” or other similar expressions in this press release. Any statements that refer to projections of our future financial or operating performance, anticipated trends in our business, our goals, strategies, focus and plans, including related product development and commercialization and regulatory approvals, and other characterizations of future events or circumstances, including statements expressing general optimism about future operating results, related to the company’s performance are forward-looking statements. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented in this report, or that we may make orally or in writing from time to time, are expressions of our beliefs and expectations based on currently available information at the time such statements are made. Such statements are based on assumptions, and the actual outcome will be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Although we believe that our assumptions are reasonable, we cannot guarantee future performance, and some will inevitably prove to be incorrect. As a result, our actual future results and the timing of events may differ from our expectations, and those differences may be material. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: our ability to successfully, timely and cost-effectively develop, seek and obtain regulatory clearance for and commercialize our product offerings; the rate of adoption of our products by healthcare providers or other customers; the success of our marketing initiatives; the safe and effective use of our products; our ability to protect our intellectual property; our future expansion plans and capital allocation; our ability to expand upon and/or secure sources of credit or capital; our ability to develop and maintain relationships with qualified suppliers to avoid a significant interruption in our supply chains; our ability to attract and retain key personnel; our ability to scale our operations to meet market demands; the effect on our business of existing and new regulatory requirements; and other economic and competitive factors. These and other factors that could cause or contribute to actual results differing materially from our expectations include, among others, those risks and uncertainties discussed in the company’s quarterly report on Form 10-Q filed on
Consolidated Statements of Operations (In thousands, except share and per share data) |
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Year Ended
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2021 |
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2020 |
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2019 |
|
|
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(Unaudited) |
|
|
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Revenue |
|
$ |
126,682 |
|
|
$ |
84,676 |
|
|
$ |
89,565 |
|
Cost of revenue |
|
|
41,278 |
|
|
|
32,174 |
|
|
|
34,704 |
|
Gross profit |
|
|
85,404 |
|
|
|
52,502 |
|
|
|
54,861 |
|
Operating expenses: |
|
|
|
|
|
|
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Sales, general and administrative |
|
|
92,229 |
|
|
|
66,625 |
|
|
|
70,811 |
|
Research and development |
|
|
18,315 |
|
|
|
13,793 |
|
|
|
14,991 |
|
Total operating expenses |
|
|
110,544 |
|
|
|
80,418 |
|
|
|
85,802 |
|
Loss from operations |
|
|
(25,140 |
) |
|
|
(27,916 |
) |
|
|
(30,941 |
) |
Interest income |
|
|
23 |
|
|
|
15 |
|
|
|
4 |
|
Interest expense |
|
|
(9,062 |
) |
|
|
(9,373 |
) |
|
|
(8,696 |
) |
Change in fair value of derivative instruments |
|
|
737 |
|
|
|
1,632 |
|
|
|
3,052 |
|
Change in fair value of contingent consideration |
|
|
— |
|
|
|
304 |
|
|
|
276 |
|
Other income (expense), net |
|
|
(6,270 |
) |
|
|
(2,679 |
) |
|
|
(1,205 |
) |
Loss before income taxes |
|
|
(39,712 |
) |
|
|
(38,017 |
) |
|
|
(37,510 |
) |
Provision for income taxes |
|
|
(1,427 |
) |
|
|
(104 |
) |
|
|
(640 |
) |
Net loss |
|
$ |
(41,139 |
) |
|
$ |
(38,121 |
) |
|
$ |
(38,150 |
) |
|
|
|
|
|
|
|
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Basic and diluted net loss per share |
|
$ |
(1.72 |
) |
|
$ |
(1.63 |
) |
|
$ |
(1.86 |
) |
Weighted average outstanding shares used for basic and diluted net loss per share |
|
|
23,972,722 |
|
|
|
23,316,102 |
|
|
|
20,541,528 |
|
Consolidated Balance Sheets (In thousands) |
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2021 |
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2020 |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash |
$ |
53,415 |
|
$ |
84,523 |
Accounts receivable, net of allowance for doubtful accounts of |
|
24,437 |
|
|
19,127 |
Inventory, net |
|
28,407 |
|
|
23,210 |
Prepaid expenses and other current assets |
|
7,012 |
|
|
5,439 |
Total current assets |
|
113,271 |
|
|
132,299 |
Long-term assets: |
|
|
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||
Property and equipment, net of accumulated depreciation |
|
18,658 |
|
|
16,202 |
|
|
465 |
|
|
465 |
Intangible assets, net of accumulated amortization |
|
4,371 |
|
|
4,148 |
Right-of-use operating lease assets, net |
|
2,206 |
|
|
2,610 |
Other non-current assets |
|
558 |
|
|
664 |
Total assets |
$ |
139,529 |
|
$ |
156,388 |
Liabilities and shareholders’ equity |
|
|
|
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Current liabilities: |
|
|
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Accounts payable |
$ |
14,475 |
|
$ |
9,722 |
Accrued liabilities |
|
16,236 |
|
|
14,532 |
Other liabilities, short-term |
|
1,178 |
|
|
1,646 |
Total current liabilities |
|
31,889 |
|
|
25,900 |
Long-term liabilities: |
|
|
|
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Note payable, Madryn, net of debt discount and issuance costs |
|
51,906 |
|
|
49,832 |
Madryn put option |
|
703 |
|
|
1,440 |
Operating lease liabilities, non-current |
|
1,900 |
|
|
1,923 |
Other liabilities, long-term |
|
2,392 |
|
|
2,332 |
Total liabilities |
|
88,790 |
|
|
81,427 |
Shareholders’ equity: |
|
|
|
||
Total shareholders’ equity |
|
50,739 |
|
|
74,961 |
Total liabilities and shareholders’ equity |
$ |
139,529 |
|
$ |
156,388 |
|
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|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220301005438/en/
Investor/Media Contact:
Raj Denhoy
415 828-1044
rdenhoy@establishmentlabs.com
Source:
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