Establishment Labs Reports Second Quarter 2024 Financial Results
Establishment Labs Holdings Inc. (NASDAQ: ESTA) reported Q2 2024 financial results. Worldwide revenue was $44.1 million, with 2024 revenue guidance maintained at $174-184 million. Gross profit was $28.9 million (65.6% of revenue). The company reported a loss from operations of $9.3 million and an Adjusted EBITDA loss of $4.3 million. Cash balance stood at $54.6 million.
Key highlights include:
- FDA PMA preapproval inspection completed
- FDA approval of Motiva Implants expected soon
- 18.7% sequential revenue growth
- Improved adjusted EBITDA loss compared to previous year
The company anticipates strong growth with the upcoming U.S. launch of Motiva Implants.
Establishment Labs Holdings Inc. (NASDAQ: ESTA) ha riportato i risultati finanziari del secondo trimestre del 2024. Il fatturato globale è stato di 44,1 milioni di dollari, mantenendo la previsione di fatturato per il 2024 tra 174 e 184 milioni di dollari. Il profitto lordo è stato di 28,9 milioni di dollari (65,6% del fatturato). L'azienda ha riportato una perdita operativa di 9,3 milioni di dollari e una perdita dell'EBITDA rettificato di 4,3 milioni di dollari. Il saldo di cassa si è attestato a 54,6 milioni di dollari.
I punti salienti includono:
- Ispezione pre-approvazione PMA completata dalla FDA
- Approvazione della FDA per gli Impianti Motiva prevista a breve
- Crescita sequenziale del fatturato del 18,7%
- Miglioramento della perdita di EBITDA rettificato rispetto all'anno precedente
L'azienda prevede una forte crescita con il prossimo lancio negli Stati Uniti degli Impianti Motiva.
Establishment Labs Holdings Inc. (NASDAQ: ESTA) reportó los resultados financieros del segundo trimestre de 2024. Los ingresos globales fueron de 44,1 millones de dólares, manteniendo la guía de ingresos de 2024 en un rango de 174 a 184 millones de dólares. La ganancia bruta fue de 28,9 millones de dólares (65,6% de los ingresos). La compañía reportó una pérdida de operaciones de 9,3 millones de dólares y una pérdida de EBITDA ajustado de 4,3 millones de dólares. El saldo de efectivo fue de 54,6 millones de dólares.
Los aspectos destacados incluyen:
- Inspección preaprobada PMA completada por la FDA
- Se espera la aprobación de la FDA para los Implantes Motiva pronto
- Crecimiento secuencial de ingresos del 18,7%
- Mejora en la pérdida de EBITDA ajustado en comparación con el año anterior
La compañía anticipa un fuerte crecimiento con el próximo lanzamiento de los Implantes Motiva en Estados Unidos.
Establishment Labs Holdings Inc. (NASDAQ: ESTA)는 2024년 2분기 재무 결과를 발표했습니다. 전 세계 수익은 4,410만 달러였으며, 2024년 수익 전망은 1억 7400만 ~ 1억 8400만 달러로 유지되었습니다. 총 이익은 2,890만 달러로 (수익의 65.6%) 기록되었습니다. 회사는 운영 손실로 930만 달러, 조정된 EBITDA 손실로 430만 달러를 보고했습니다. 현금 잔고는 5,460만 달러입니다.
주요 하이라이트는 다음과 같습니다:
- FDA PMA 사전 승인 검사 완료
- 모티바 임플란트에 대한 FDA 승인 예상
- 18.7%의 순차적 수익 성장
- 지난해 대비 조정된 EBITDA 손실 개선
회사는 모티바 임플란트의 향후 미국 출시와 함께 강력한 성장을 예상하고 있습니다.
Establishment Labs Holdings Inc. (NASDAQ: ESTA) a annoncé les résultats financiers du deuxième trimestre de 2024. Le chiffre d'affaires mondial était de 44,1 millions de dollars, avec une prévision de chiffre d'affaires pour 2024 maintenue entre 174 et 184 millions de dollars. Le bénéfice brut s'élevait à 28,9 millions de dollars (65,6 % du chiffre d'affaires). La société a enregistré une perte d'exploitation de 9,3 millions de dollars et une perte d'EBITDA ajusté de 4,3 millions de dollars. Le solde de trésorerie était de 54,6 millions de dollars.
Les points clés incluent :
- Inspection préalable à l'approbation PMA complétée par la FDA
- Approbation de la FDA pour les implants Motiva attendue prochainement
- Croissance séquentielle du chiffre d'affaires de 18,7 %
- Amélioration de la perte d'EBITDA ajusté par rapport à l'année précédente
L'entreprise anticipe une forte croissance avec le lancement prochain des implants Motiva aux États-Unis.
Establishment Labs Holdings Inc. (NASDAQ: ESTA) hat die finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Der weltweite Umsatz betrug 44,1 Millionen Dollar, wobei die Umsatzprognose für 2024 bei 174 bis 184 Millionen Dollar bleibt. Der Bruttoertrag belief sich auf 28,9 Millionen Dollar (65,6% des Umsatzes). Das Unternehmen meldete einen Operativen Verlust von 9,3 Millionen Dollar und einen Verlust bei angepasster EBITDA von 4,3 Millionen Dollar. Der Kassenbestand betrug 54,6 Millionen Dollar.
Wichtige Highlights sind:
- FDA PMA-Vorprüfinspektion abgeschlossen
- FDA-Zulassung für Motiva-Implantate wird bald erwartet
- 18,7% sequenzielle Umsatzsteigerung
- Verbesserter Verlust bei angepasstem EBITDA im Vergleich zum Vorjahr
Das Unternehmen erwartet ein starkes Wachstum mit der bevorstehenden Markteinführung der Motiva-Implantate in den USA.
- 18.7% sequential revenue growth in Q2
- Improved gross profit margin to 65.6% from 62.3% year-over-year
- Reduced operating expenses by $5.7 million compared to Q2 2023
- Adjusted EBITDA loss improved to $4.3 million from $9.3 million year-over-year
- FDA PMA preapproval inspection completed, with approval expected soon
- Maintained 2024 revenue guidance of $174-184 million (5-11% growth)
- Q2 revenue decreased to $44.1 million from $48.6 million year-over-year
- Reported net loss of $17.2 million, slightly higher than $16.7 million in Q2 2023
- Cash balance decreased to $54.6 million from December 31, 2023
Insights
Establishment Labs' Q2 2024 results show a mixed financial picture. While revenue declined
Notably, gross profit margin improved to
While still operating at a loss, the adjusted EBITDA loss narrowed to
The completion of the FDA PMA preapproval inspection for Motiva Implants is a crucial milestone for Establishment Labs. This suggests that FDA approval could be imminent, potentially opening up the lucrative U.S. market for the company's breast implants.
The U.S. launch of Motiva Implants would be transformative for Establishment Labs, allowing it to compete in the world's largest breast aesthetics market. This could significantly boost revenue and market share, especially given the company's claims of superior clinical and aesthetic outcomes.
However, investors should note that regulatory approvals can be unpredictable and successful market entry will depend on factors such as pricing strategy, marketing efforts and acceptance by U.S. surgeons and patients. The company's preparedness for a potential U.S. launch will be critical in capitalizing on this opportunity.
Establishment Labs' focus on women's health and wellness, particularly in breast aesthetics and reconstruction, positions it well in the growing Femtech market. The company's portfolio, including Motiva implants, Motiva Flora tissue expander and Mia Femtech, demonstrates a commitment to innovation in this space.
With over 3 million Motiva devices delivered across 85+ countries, the company has established a strong international presence. The potential U.S. market entry could be a game-changer, as it would allow Establishment Labs to compete in a market that accounts for a significant portion of global breast implant procedures.
Investors should monitor the company's ability to execute its U.S. launch strategy, maintain its international market share and continue innovating in the Femtech space. The company's patent portfolio and scientific studies provide a solid foundation for future growth, but success will depend on effective commercialization and market adoption of its technologies.
Second Quarter Highlights and Outlook
-
Second quarter worldwide revenue of
.$44.1 million -
2024 revenue guidance remains
to$174 million , an increase of$184 million 5% to11% over 2023. -
Gross profit for the second quarter was
, or$28.9 million 65.6% of revenue, compared to , or$30.3 million 62.3% of revenue in the year-ago period. -
Second quarter loss from operations was
compared to a loss of$9.3 million in the year-ago period.$13.7 million -
Adjusted EBITDA loss of
compared to a loss of$4.3 million in the year-ago period.$9.3 million -
Cash balance of
as of June 30, 2024.$54.6 million - FDA PMA preapproval inspection completed July 26, 2024.
- FDA approval of Motiva Implants expected shortly.
“The strong sequential revenue growth of
“Late last month, the
Second Quarter 2024 Financial Results
Total revenue for the quarter ended June 30, 2024 was
Gross profit for the second quarter was
Total operating expenses for the second quarter were
SG&A expenses for the second quarter decreased approximately
R&D expenses decreased approximately
Net loss for the second quarter was
The Company’s cash balance on June 30, 2024 was
Conference Call and Webcast Information
Establishment Labs will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed by dialing (800) 715-9871 (
About Establishment Labs
Establishment Labs Holdings Inc. is a global medical technology company dedicated to improving women’s health and wellness through the power of science, engineering, and technology. The Company offers a portfolio of Femtech solutions for breast health, breast aesthetics and breast reconstruction. The over three million Motiva® devices Establishment Labs has delivered to plastic and reconstructive surgeons since 2010 have created a new standard for safety and patient satisfaction in the over 85 countries in which they are available. The Motiva Flora® tissue expander is used to improve outcomes in breast reconstruction following breast cancer and it is the only regulatory-approved expander in the world with an integrated port using radio-frequency technology that is MRI conditional. Mia Femtech™, Establishment Lab’s unique minimally invasive experience for breast harmony, is the Company’s most recent breakthrough innovation. These solutions are supported by over 200 patent applications in 25 separate patent families worldwide and over 50 scientific studies and publications in peer reviewed journals. Establishment Labs manufactures at two facilities in
Establishment Labs' Motiva silicone gel-filled implants are currently not approved for commercial distribution in
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this release includes the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: EBITDA and Adjusted EBITDA. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies, limiting the usefulness of the measures for comparison with other companies.
EBITDA is defined as net income or loss excluding: (1) interest income and expense; (2) provision for income taxes; and (3) depreciation and amortization. We consider EBITDA useful to an investor in evaluating and facilitating comparisons of our operating performance between periods by removing the impact of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results.
We also present Adjusted EBITDA which includes additional adjustments for items such as other non-cash charges, gains or losses on extinguishment of debt, share-based compensation and foreign currency gains and losses. We believe that Adjusted EBITDA provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and EBITDA, is beneficial to an investor's understanding of our performance.
We believe disclosure of this information is also useful to investors as it provides insight into the earnings that management uses to make strategic decisions. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income or loss as prescribed by GAAP as a measure of our operating performance. EBITDA and Adjusted EBITDA do not represent cash generated from operating activities under GAAP and should not be considered as alternatives to cash flows from operations or any other operating performance measure prescribed by GAAP. These measures are not measures of our liquidity, nor are indicative of funds available to fund our cash needs. These measurements do not reflect cash expenditures for long-term assets and other items that have been and will be incurred. EBITDA and Adjusted EBITDA may include funds that may not be available for management’s discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties.
Please see “Reconciliation of EBITDA and Adjusted EBITDA” for a reconciliation of these measures to net income (loss), the most directly comparable financial measure. This release also includes information about our expectations regarding Adjusted EBITDA on a forward-looking basis. We have not provided a reconciliation of such forward-looking Adjusted EBITDA information because a reconciliation of such measure to our expected GAAP net income (loss) on a forward-looking basis is not available without unreasonable efforts. The timing or amount of various reconciling items that would impact the forward-looking expectations for this non-GAAP financial measure are uncertain, depend on various factors and cannot be reasonably predicted. Such unavailable information could be material to our results computed in accordance with
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 annual report on Form 10-K filed on March 4, 2024 and will be discussed in the company's quarterly report on Form 10-Q that will be filed on August 7, 2024, which risks and uncertainties may be updated in the future in other filings made by the company with the Securities and Exchange Commission. The risks included in those documents are not exhaustive, and additional factors could adversely affect our business and financial performance. We operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We are not undertaking any obligation to update any forward-looking statements. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on known results and trends at the time they are made, to anticipate future results or trends.
ESTABLISHMENT LABS HOLDINGS INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
44,117 |
|
|
$ |
48,561 |
|
|
$ |
81,284 |
|
|
$ |
95,085 |
|
Cost of revenue |
|
|
15,181 |
|
|
|
18,300 |
|
|
|
27,968 |
|
|
|
34,745 |
|
Gross profit |
|
|
28,936 |
|
|
|
30,261 |
|
|
|
53,316 |
|
|
|
60,340 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Sales, general and administrative |
|
|
32,792 |
|
|
|
37,027 |
|
|
|
61,733 |
|
|
|
68,733 |
|
Research and development |
|
|
5,488 |
|
|
|
6,947 |
|
|
|
9,761 |
|
|
|
13,480 |
|
Total operating expenses |
|
|
38,280 |
|
|
|
43,974 |
|
|
|
71,494 |
|
|
|
82,213 |
|
Loss from operations |
|
|
(9,344 |
) |
|
|
(13,713 |
) |
|
|
(18,178 |
) |
|
|
(21,873 |
) |
Interest income |
|
|
556 |
|
|
|
170 |
|
|
|
1,044 |
|
|
|
245 |
|
Interest expense |
|
|
(5,186 |
) |
|
|
(3,620 |
) |
|
|
(9,567 |
) |
|
|
(7,376 |
) |
Other income (expense), net |
|
|
(2,779 |
) |
|
|
1,343 |
|
|
|
(5,816 |
) |
|
|
2,072 |
|
Loss before income taxes |
|
|
(16,753 |
) |
|
|
(15,820 |
) |
|
|
(32,517 |
) |
|
|
(26,932 |
) |
Provision for income taxes |
|
|
(428 |
) |
|
|
(925 |
) |
|
|
(866 |
) |
|
|
(1,755 |
) |
Net loss |
|
$ |
(17,181 |
) |
|
$ |
(16,745 |
) |
|
$ |
(33,383 |
) |
|
$ |
(28,687 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net loss per share |
|
$ |
(0.62 |
) |
|
$ |
(0.65 |
) |
|
$ |
(1.21 |
) |
|
$ |
(1.14 |
) |
Weighted average outstanding shares used for basic and diluted net loss per share |
|
|
27,905,614 |
|
|
|
25,615,444 |
|
|
|
27,679,832 |
|
|
|
25,144,375 |
|
|
|
|
|
|
|
|
|
|
ESTABLISHMENT LABS HOLDINGS INC. Consolidated Balance Sheets (In thousands) |
|||||
|
|
|
|
||
|
June 30,
|
|
December 31,
|
||
|
(Unaudited) |
|
|
||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash |
$ |
54,600 |
|
$ |
40,035 |
Accounts receivable, net of allowance for credit losses of |
|
59,982 |
|
|
46,918 |
Inventory, net |
|
64,213 |
|
|
79,471 |
Prepaid expenses and other current assets |
|
7,337 |
|
|
8,477 |
Total current assets |
|
186,132 |
|
|
174,901 |
Long-term assets: |
|
|
|
||
Property and equipment, net of accumulated depreciation |
|
79,546 |
|
|
77,205 |
Goodwill |
|
465 |
|
|
465 |
Intangible assets, net of accumulated amortization |
|
10,041 |
|
|
7,987 |
Right-of-use operating lease assets, net |
|
3,717 |
|
|
3,381 |
Other non-current assets |
|
5,187 |
|
|
4,702 |
Total assets |
$ |
285,088 |
|
$ |
268,641 |
Liabilities and shareholders’ equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable |
$ |
28,420 |
|
$ |
41,624 |
Accrued liabilities |
|
11,812 |
|
|
13,690 |
Other liabilities, short-term |
|
1,660 |
|
|
1,836 |
Total current liabilities |
|
41,892 |
|
|
57,150 |
Long-term liabilities: |
|
|
|
||
Note payable, net of debt discount and issuance costs |
|
193,732 |
|
|
188,739 |
Operating lease liabilities, non-current |
|
2,989 |
|
|
2,712 |
Other liabilities, long-term |
|
1,456 |
|
|
1,645 |
Total liabilities |
|
240,069 |
|
|
250,246 |
Shareholders’ equity: |
|
|
|
||
Total shareholders’ equity |
|
45,019 |
|
|
18,395 |
Total liabilities and shareholders’ equity |
$ |
285,088 |
|
$ |
268,641 |
|
|
|
|
ESTABLISHMENT LABS HOLDINGS INC. Reconciliation of EBITDA and Adjusted EBITDA (In thousands) (Unaudited) |
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The following is a reconciliation of net loss to EBITDA and Adjusted EBITDA: |
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|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(17,181 |
) |
|
$ |
(16,745 |
) |
|
$ |
(33,383 |
) |
|
$ |
(28,687 |
) |
Interest expense |
|
(5,186 |
) |
|
|
(3,620 |
) |
|
|
(9,567 |
) |
|
|
(7,376 |
) |
Interest income |
|
556 |
|
|
|
170 |
|
|
|
1,044 |
|
|
|
245 |
|
Provision for income taxes |
|
(428 |
) |
|
|
(925 |
) |
|
|
(866 |
) |
|
|
(1,755 |
) |
Depreciation and amortization |
|
(1,268 |
) |
|
|
(947 |
) |
|
|
(2,690 |
) |
|
|
(1,883 |
) |
EBITDA |
|
(10,855 |
) |
|
|
(11,423 |
) |
|
|
(21,304 |
) |
|
|
(17,918 |
) |
Stock compensation expense |
|
(3,757 |
) |
|
|
(3,616 |
) |
|
|
(7,202 |
) |
|
|
(6,940 |
) |
Foreign currency gain (loss) |
|
(2,764 |
) |
|
|
1,460 |
|
|
|
(5,783 |
) |
|
|
2,379 |
|
Adjusted EBITDA |
$ |
(4,334 |
) |
|
$ |
(9,267 |
) |
|
$ |
(8,319 |
) |
|
$ |
(13,357 |
) |
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806138099/en/
Investor/Media Contact:
Raj Denhoy
415 828-1044
rdenhoy@establishmentlabs.com
Source: Establishment Labs Holdings Inc.
FAQ
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