Glaukos Announces First Quarter 2024 Financial Results
Glaukos (NYSE: GKOS) reported strong financial results for the first quarter of 2024, with record net sales of $85.6 million, marking a 16% increase year-over-year. The company raised its 2024 net sales guidance to $357 to $365 million. Glaukos continues to focus on developing innovative technologies to enhance patient care in ophthalmology.
Record net sales of $85.6 million in Q1 2024, a 16% increase year-over-year.
Glaucoma net sales of $67.2 million in Q1 2024, up 20% year-over-year.
Corneal Health net sales of $18.4 million in Q1 2024, a 4% increase year-over-year.
Gross margin of approximately 76% and non-GAAP gross margin of approximately 83% in Q1 2024.
Raised 2024 net sales guidance to $357 to $365 million.
Loss from operations in Q1 2024 was $39.1 million, compared to $33.0 million in Q1 2023.
Net loss in Q1 2024 was $40.8 million, or ($0.82) per diluted share, compared to $34.6 million, or ($0.72) per diluted share, in Q1 2023.
Insights
Gross margins remaining steady at 76% and non-GAAP gross margins at 83% indicate Glaukos' ability to maintain profitability in their cost of goods sold, even with a 16% increase in net sales. However, the increase in SG&A expenses by the same percentage points to a parallel rise in operational costs, which may suggest that the company is investing in marketing and administrative expansion to support their sales growth.
What is notable is the decrease in R&D expenses by
The raised guidance for 2024 sales reflects management’s optimism in the company’s growth trajectory, potentially driven by new product launches or market expansions. Yet, the increased losses could dampen investor confidence if the trend continues without a clear pathway to profitability.
Glaukos' positioning in the ophthalmic market, primarily with glaucoma and corneal health products, appears strong with a
From an investor perspective, the mention of a 'robust pipeline of novel, dropless platform technologies' implies potential for future growth. However, investors should be vigilant about the timelines and success rates of pipeline products, especially considering the significant
The liquidity position with
-
Record net sales of
$85.6 million 16% year-over-year. -
Glaucoma record net sales of
$67.2 million 20% year-over-year. -
Corneal Health net sales of
$18.4 million 4% year-over-year. -
Gross margin of approximately
76% and non-GAAP gross margin of approximately83% in Q1 2024. -
Raised 2024 net sales guidance to
$357 $365 million $350 million $360 million
“Our record first quarter results reflect successful global execution of our key strategic plans,” said Thomas Burns, Glaukos chairman and chief executive officer. “We continue to successfully advance our robust pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care and improve outcomes for patients suffering from chronic eye diseases.”
First Quarter 2024 Financial Results
Net sales in the first quarter of 2024 of
Gross margin for the first quarter of 2024 was approximately
Selling, general and administrative (SG&A) expenses for the first quarter of 2024 increased
GAAP and non-GAAP research and development (R&D) expenses for the first quarter of 2024 decreased
Loss from operations in the first quarter of 2024 was
Net loss in the first quarter of 2024 was
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the first quarter of 2024 is an acquired in-process R&D (IPR&D) charge of
The company ended the first quarter of 2024 with approximately
2024 Revenue Guidance
The company expects 2024 net sales to be in the range of
Webcast & Conference Call
The company will host a conference call and simultaneous webcast today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results and provide additional information about the company’s financial outlook. A link to the webcast is available on the company’s website at http://investors.glaukos.com. To participate in the conference call, please dial 888-210-2212 (
Quarterly Summary Document
The company has posted a document on its Investor Relations website under the “Financials & Filings – Quarterly Results” section titled “Quarterly Summary.” This Quarterly Summary document is designed to provide the investment community with a summarized and easily accessible reference document that details the key facts associated with the quarter, the state of the company’s business objectives and strategies and any forward statements or guidance the company may make. This document is provided alongside the company’s earnings press release and is designed to be read by investors before the regularly scheduled quarterly conference call. As such, today’s conference call will be in a format primarily consisting of a questions and answers session, during which Glaukos will address any queries investors have regarding the company’s results. It is the company’s goal that this format will make its quarterly earnings process more efficient and impactful for the investment community going forward.
About Glaukos
Glaukos (www.glaukos.com) is an ophthalmic pharmaceutical and medical technology company focused on developing and commercializing novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. Glaukos first developed Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the traditional glaucoma treatment paradigm, launching its first MIGS device commercially in 2012, and continues to develop a portfolio of technologically distinct and leverageable platforms to support ongoing pharmaceutical and medical device innovations. Products or product candidates for each of these platforms are designed to advance the standard of care through better treatment options across the areas of glaucoma, corneal disorders and retinal diseases.
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that they are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that may cause our actual results to differ materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements include, without limitation, uncertainties regarding the impact of the COVID-19 pandemic or other future public health crises on our business; the impact of general macroeconomic conditions including foreign currency fluctuations; the reduced physician fee and ASC facility fee reimbursement rate finalized by CMS for 2022 and 2023 for procedures utilizing the Company’s iStent family of products and its impact on our
Statement Regarding Use of Non-GAAP Financial Measures
To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the term "Non-GAAP" to exclude external acquisition-related costs incurred to effect a business combination; amortization of intangible assets acquired in a business combination, asset purchase transaction or other contractual relationship; impairment of goodwill and intangible assets; certain in-process R&D charges; fair value adjustments to contingent consideration liabilities and pre-acquisition contingencies arising from a business combination; integration and transition costs related to business combinations; fair market value adjustments to inventories acquired in a business combination or asset purchase transaction; restructuring charges, duplicative operating expenses, or asset write-offs (or reversals) associated with exiting or significantly downsizing a business; gain or loss from the sale of a business; gain or loss on the mark-to-market adjustment, impairment, or sale of long-term investments; mark-to-market adjustments on derivative instruments that hedge income or expense exposures in a future period; significant legal litigation costs and/or settlement expenses or proceeds legal and other associated expenses that are both unusual and significant related to governmental or internal inquiries; and significant discrete income and other tax adjustments related to transactions as well as changes in estimated acquisition-date tax effects associated with business combinations, and the impact from implementation of tax law changes and settlements. See “GAAP to Non-GAAP Reconciliations” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.
In addition, in order to remove the impact of fluctuations in foreign currency exchange rates, the Company also presents certain net sales information on a constant currency basis, which represents the outcome that would have resulted had exchange rates in the current period been the same as the average exchange rates in effect in the comparable prior period. See “Reported Sales vs. Prior Periods” for a presentation of certain net sales information on a reported, GAAP and a constant currency basis.
| GLAUKOS CORPORATION | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (unaudited) | |||||||||
| (in thousands, except per share amounts) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
2024 |
2023 |
||||||||
| Net sales | $ |
85,622 |
|
$ |
73,899 |
|
|||
| Cost of sales |
|
20,258 |
|
|
18,071 |
|
|||
| Gross profit |
|
65,364 |
|
|
55,828 |
|
|||
| Operating expenses: | |||||||||
| Selling, general and administrative |
|
61,975 |
|
|
53,650 |
|
|||
| Research and development |
|
30,726 |
|
|
35,171 |
|
|||
| Acquired in-process research and development |
|
11,729 |
|
|
- |
|
|||
| Total operating expenses |
|
104,430 |
|
|
88,821 |
|
|||
| Loss from operations |
|
(39,066 |
) |
|
(32,993 |
) |
|||
| Non-operating expense: | |||||||||
| Interest income |
|
3,083 |
|
|
1,648 |
|
|||
| Interest expense |
|
(3,450 |
) |
|
(3,408 |
) |
|||
| Other (expense) income, net |
|
(1,028 |
) |
|
528 |
|
|||
| Total non-operating expense |
|
(1,395 |
) |
|
(1,232 |
) |
|||
| Loss before taxes |
|
(40,461 |
) |
|
(34,225 |
) |
|||
| Income tax provision |
|
377 |
|
|
401 |
|
|||
| Net loss | $ |
(40,838 |
) |
$ |
(34,626 |
) |
|||
| Basic and diluted net loss per share | $ |
(0.82 |
) |
$ |
(0.72 |
) |
|||
| Weighted average shares used to compute basic and diluted net loss per share |
|
49,580 |
|
|
47,881 |
|
|||
| GLAUKOS CORPORATION | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, except par values) | |||||||
March 31, |
December 31, |
||||||
2024 |
2023 |
||||||
(unaudited) |
|||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ |
42,495 |
|
$ |
93,467 |
|
|
| Short-term investments |
|
230,365 |
|
|
201,964 |
|
|
| Accounts receivable, net |
|
46,545 |
|
|
39,850 |
|
|
| Inventory |
|
50,185 |
|
|
41,986 |
|
|
| Prepaid expenses and other current assets |
|
19,020 |
|
|
18,194 |
|
|
| Total current assets |
|
388,610 |
|
|
395,461 |
|
|
| Restricted cash |
|
5,856 |
|
|
5,856 |
|
|
| Property and equipment, net |
|
101,858 |
|
|
103,212 |
|
|
| Operating lease right-of-use asset |
|
26,683 |
|
|
27,146 |
|
|
| Finance lease right-of-use asset |
|
43,575 |
|
|
44,180 |
|
|
| Intangible assets, net |
|
281,919 |
|
|
282,956 |
|
|
| Goodwill |
|
66,134 |
|
|
66,134 |
|
|
| Deposits and other assets |
|
18,703 |
|
|
15,469 |
|
|
| Total assets | $ |
933,338 |
|
$ |
940,414 |
|
|
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
12,752 |
|
$ |
13,440 |
|
|
| Accrued liabilities |
|
59,486 |
|
|
60,574 |
|
|
| Total current liabilities |
|
72,238 |
|
|
74,014 |
|
|
| Convertible senior notes |
|
283,117 |
|
|
282,773 |
|
|
| Operating lease liability |
|
30,110 |
|
|
30,427 |
|
|
| Finance lease liability |
|
70,289 |
|
|
70,538 |
|
|
| Deferred tax liability, net |
|
7,144 |
|
|
7,144 |
|
|
| Other liabilities |
|
19,710 |
|
|
13,752 |
|
|
| Total liabilities |
|
482,608 |
|
|
478,648 |
|
|
| Stockholders' equity: | |||||||
| Preferred stock, |
|
- |
|
|
- |
|
|
| Common stock, |
|
50 |
|
|
49 |
|
|
| Additional paid-in capital |
|
1,089,280 |
|
|
1,059,751 |
|
|
| Accumulated other comprehensive income (loss) |
|
1,437 |
|
|
1,165 |
|
|
| Accumulated deficit |
|
(639,905 |
) |
|
(599,067 |
) |
|
| Less treasury stock (28 shares as of March 31, 2024 and December 31, 2023 |
|
(132 |
) |
|
(132 |
) |
|
| Total stockholders' equity |
|
450,730 |
|
|
461,766 |
|
|
| Total liabilities and stockholders' equity | $ |
933,338 |
|
$ |
940,414 |
|
|
| GLAUKOS CORPORATION | |||||||||||||||||||||||||
| GAAP to Non-GAAP Reconciliations | |||||||||||||||||||||||||
| (in thousands, except per share amounts and percentage data) | |||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||
| Q1 2024 | Q1 2023 | ||||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||
| Cost of sales | $ |
20,258 |
|
$ |
(5,523 |
) |
(a) | $ |
14,735 |
|
$ |
18,071 |
|
$ |
(5,523 |
) |
(a) | $ |
12,548 |
|
|||||
| Gross Margin |
|
76.3 |
% |
|
6.5 |
% |
|
82.8 |
% |
|
75.5 |
% |
|
7.5 |
% |
|
83.0 |
% |
|||||||
| Operating expenses: | |||||||||||||||||||||||||
| Selling, general and administrative | $ |
61,975 |
|
$ |
(705 |
) |
(b) | $ |
61,270 |
|
$ |
53,650 |
|
$ |
(705 |
) |
(b) | $ |
52,945 |
|
|||||
| Loss from operations | $ |
(39,066 |
) |
$ |
6,228 |
|
$ |
(32,838 |
) |
$ |
(32,993 |
) |
$ |
6,228 |
|
$ |
(26,765 |
) |
|||||||
| Net loss | $ |
(40,838 |
) |
$ |
6,228 |
|
(c) | $ |
(34,610 |
) |
$ |
(34,626 |
) |
$ |
6,228 |
|
(c) | $ |
(28,398 |
) |
|||||
| Basic and diluted net loss per share | $ |
(0.82 |
) |
$ |
0.12 |
|
$ |
(0.70 |
) |
$ |
(0.72 |
) |
$ |
0.13 |
|
$ |
(0.59 |
) |
|||||||
| (a) | Cost of sales adjustments related to the acquisition of Avedro, Inc. (Avedro) for amortization of developed technology intangible assets of |
||||||||||||||||||||||||
| (b) | Avedro acquisition-related expenses for amortization expense of customer relationship intangible assets of |
||||||||||||||||||||||||
| (c) | Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the |
||||||||||||||||||||||||
| Reported Sales vs. Prior Periods (in thousands) | ||||||||||||||||||
| Year-over-Year Percent Change | Quarter-over-Quarter Percent Change | |||||||||||||||||
1Q 2024 |
1Q 2023 |
4Q 2023 |
Reported | Operations (1) | Currency (2) | Reported | Operations (1) | Currency (2) | ||||||||||
| International Glaucoma | $ |
25,238 |
$ |
21,118 |
$ |
21,857 |
19.5 |
% |
21.4 |
% |
(1.9 |
%) |
15.5 |
% |
14.5 |
% |
1.0 |
% |
| Total Net Sales | $ |
85,622 |
$ |
73,899 |
$ |
82,365 |
15.9 |
% |
16.4 |
% |
(0.5 |
%) |
4.0 |
% |
3.7 |
% |
0.3 |
% |
| (1) Operational growth excludes the effect of translational currency | ||||||||||||||||||
| (2) Calculated by converting the current period numbers using the prior period’s average foreign exchange rates | ||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501994978/en/
Chris Lewis
Vice President, Investor Relations & Corporate Affairs
(949) 481-0510
clewis@glaukos.com
Source: Glaukos Corporation
FAQ
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