Glaukos Announces Fourth Quarter and Full Year 2023 Financial Results
- Record net sales of $82.4 million in Q4 2023, up 16% year-over-year.
- Net sales for FY 2023 increased by 11% to $314.7 million.
- Glaucoma net sales rose by 15% in Q4 2023, reaching $60.6 million.
- Corneal Health net sales increased by 19% in Q4 2023, totaling $21.8 million.
- Gross margin of approximately 77% and non-GAAP gross margin of approximately 84% in Q4 2023.
- Reaffirmed 2024 net sales guidance of $350 million to $360 million.
- The company ended Q4 2023 with approximately $301 million in cash and cash equivalents, short-term investments, and restricted cash.
- Loss from operations in Q4 2023 was $38.6 million, compared to an operating loss of $33.7 million in Q4 2022.
- Net loss in Q4 2023 was $36.8 million, compared to a net loss of $31.5 million in Q4 2022.
- Non-GAAP loss from operations in Q4 2023 was $32.4 million, compared to a non-GAAP operating loss of $27.4 million in Q4 2022.
- Full year 2023 net loss was $134.7 million, compared to $99.2 million in 2022.
Insights
The reported increase in Glaukos Corporation's net sales by 16% year-over-year in Q4 2023 and an 11% increase for the full year, indicates a robust revenue growth trajectory, which is a positive signal for investors and stakeholders. This growth is particularly noteworthy in the highly competitive medical technology and pharmaceuticals sector. The reaffirmation of the 2024 net sales guidance suggests management confidence in the company's continued growth, potentially influencing investor sentiment.
However, the rise in SG&A and R&D expenses, outpacing revenue growth, indicates significant investment in marketing, administration and research initiatives. While this can be a sign of a company aggressively pursuing market expansion and innovation, it also raises concerns about the impact on profitability, as evidenced by the reported increase in operating and net losses. The non-GAAP adjustments, such as the exclusion of acquired IPR&D charges, provide an alternative view of financial performance, but investors should critically assess these non-GAAP measures against GAAP results to understand the underlying business performance.
Lastly, the company's strong gross margin reflects efficient cost management relative to sales, which is essential for long-term sustainability. However, the operating and net losses highlight the challenge of translating gross margins into net profitability.
Glaukos Corporation's focus on novel, dropless platform technologies for chronic eye diseases positions it within a niche but growing segment of the ophthalmic market. The increase in net sales for both glaucoma and corneal health products reflects a growing demand for advanced treatment options. The company's investment in R&D, as indicated by the 13% increase in R&D expenses, suggests a commitment to innovation and the development of a pipeline that could address unmet needs in glaucoma, corneal disorders and retinal diseases.
For stakeholders, the pipeline progress and potential market expansion into novel therapies could represent future revenue streams and market share growth. However, the costs associated with R&D and the uncertainty of clinical trial outcomes and regulatory approval, present inherent risks. The acquired IPR&D charge reflects ongoing investments in developing these technologies, which could lead to transformative growth, albeit with associated financial risks in the short term.
The reaffirmed revenue guidance for 2024 and the reported cash reserves of approximately $301 million provide a stable outlook for Glaukos Corporation's operations and strategic initiatives. The company's performance in the context of the broader ophthalmic pharmaceutical and medical technology market suggests resilience amidst economic fluctuations and competitive pressures.
From a market perspective, the double-digit sales growth in Q4 and the full year of 2023 could be indicative of effective market penetration and the successful adoption of Glaukos' products. However, the increase in operating losses may raise questions about the scalability of current business strategies and the timeline for achieving profitability. The ability to manage operating expenses while capitalizing on market opportunities will be critical for the company's long-term success and stock performance.
-
Record net sales of
$82.4 million 16% year-over-year on a reported basis and15% year-over-year on a constant currency basis. -
Glaucoma net sales of
$60.6 million 15% year-over-year. -
Corneal Health net sales of
$21.8 million 19% year-over-year. -
Gross margin of approximately
77% and non-GAAP gross margin of approximately84% in Q4 2023. -
Net sales of
$314.7 million 11% year-over-year on a reported basis and12% year-over-year on a constant currency basis. -
Reaffirmed 2024 net sales guidance of
$350 million $360 million
“Our record fourth quarter results cap off a successful year of global execution and key milestone achievements, leaving us well positioned to execute our strategic plans as we enter into what we believe will be a transformative period for our company over the coming years,” 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.”
Fourth Quarter 2023 Financial Results
Net sales in the fourth quarter of 2023 of
Gross margin for the fourth quarter of 2023 was approximately
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2023 increased
GAAP and non-GAAP research and development (R&D) expenses for the fourth quarter of 2023 increased
Loss from operations in the fourth quarter of 2023 was
Net loss in the fourth quarter of 2023 was
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the fourth quarter of 2023 is an acquired in-process R&D (IPR&D) charge of
Full Year 2023 Financial Results
Net sales in 2023 of
Gross margin for 2023 was approximately
SG&A expenses in 2023 increased
R&D expenses in 2023 rose
Loss from operations in 2023 was
Net loss in 2023 was
During 2022, the company received a
Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for 2023 and 2022 are acquired IPR&D charges of
The company ended the fourth quarter of 2023 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 December 31, |
Year Ended December 31, |
|||||||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|||||
| Net sales | $ |
82,365 |
|
$ |
71,227 |
|
$ |
314,711 |
|
$ |
282,862 |
|
||||
| Cost of sales |
|
18,891 |
|
|
17,222 |
|
|
75,575 |
|
|
68,979 |
|
||||
| Gross profit |
|
63,474 |
|
|
54,005 |
|
|
239,136 |
|
|
213,883 |
|
||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative |
|
63,034 |
|
|
51,927 |
|
|
224,068 |
|
|
192,925 |
|
||||
| Research and development |
|
37,062 |
|
|
35,812 |
|
|
138,768 |
|
|
123,271 |
|
||||
| Acquired in-process research and development |
|
2,000 |
|
|
- |
|
|
5,000 |
|
|
10,000 |
|
||||
| Litigation-related settlement |
|
- |
|
|
- |
|
|
- |
|
|
(30,000 |
) |
||||
| Total operating expenses |
|
102,096 |
|
|
87,739 |
|
|
367,836 |
|
|
296,196 |
|
||||
| Loss from operations |
|
(38,622 |
) |
|
(33,734 |
) |
|
(128,700 |
) |
|
(82,313 |
) |
||||
| Non-operating income (expense): | ||||||||||||||||
| Interest income |
|
2,912 |
|
|
960 |
|
|
9,164 |
|
|
2,375 |
|
||||
| Interest expense |
|
(3,428 |
) |
|
(3,409 |
) |
|
(13,633 |
) |
|
(13,720 |
) |
||||
| Other income (expense), net |
|
2,420 |
|
|
5,021 |
|
|
(558 |
) |
|
(4,771 |
) |
||||
| Total non-operating income (expense) |
|
1,904 |
|
|
2,572 |
|
|
(5,027 |
) |
|
(16,116 |
) |
||||
| Loss before taxes |
|
(36,718 |
) |
|
(31,162 |
) |
|
(133,727 |
) |
|
(98,429 |
) |
||||
| Income tax provision |
|
61 |
|
|
298 |
|
|
934 |
|
|
766 |
|
||||
| Net loss | $ |
(36,779 |
) |
$ |
(31,460 |
) |
$ |
(134,661 |
) |
$ |
(99,195 |
) |
||||
| Basic and diluted net loss per share | $ |
(0.75 |
) |
$ |
(0.66 |
) |
$ |
(2.78 |
) |
$ |
(2.09 |
) |
||||
| Weighted average shares used to compute basic and diluted net loss per share |
|
48,876 |
|
|
47,738 |
|
|
48,433 |
|
|
47,444 |
|
||||
| GLAUKOS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) |
||||||||
December 31,
|
December 31,
|
|||||||
|
(unaudited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
93,467 |
|
$ |
119,525 |
|
||
| Short-term investments |
|
201,964 |
|
|
233,170 |
|
||
| Accounts receivable, net |
|
39,850 |
|
|
36,073 |
|
||
| Inventory |
|
41,986 |
|
|
37,841 |
|
||
| Prepaid expenses and other current assets |
|
18,194 |
|
|
17,250 |
|
||
| Total current assets |
|
395,461 |
|
|
443,859 |
|
||
| Restricted cash |
|
5,856 |
|
|
7,078 |
|
||
| Property and equipment, net |
|
103,212 |
|
|
94,403 |
|
||
| Operating lease right-of-use asset |
|
27,146 |
|
|
25,826 |
|
||
| Finance lease right-of-use asset |
|
44,180 |
|
|
46,601 |
|
||
| Intangible assets, net |
|
282,956 |
|
|
307,869 |
|
||
| Goodwill |
|
66,134 |
|
|
66,134 |
|
||
| Deposits and other assets |
|
15,469 |
|
|
10,613 |
|
||
| Total assets | $ |
940,414 |
|
$ |
1,002,383 |
|
||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
13,440 |
|
$ |
14,403 |
|
||
| Accrued liabilities |
|
60,574 |
|
|
57,956 |
|
||
| Total current liabilities |
|
74,014 |
|
|
72,359 |
|
||
| Convertible senior notes |
|
282,773 |
|
|
281,400 |
|
||
| Operating lease liability |
|
30,427 |
|
|
28,905 |
|
||
| Finance lease liability |
|
70,538 |
|
|
72,172 |
|
||
| Deferred tax liability, net |
|
7,144 |
|
|
7,264 |
|
||
| Other liabilities |
|
13,752 |
|
|
10,278 |
|
||
| Total liabilities |
|
478,648 |
|
|
472,378 |
|
||
| Stockholders' equity: | ||||||||
| Preferred stock, |
|
- |
|
|
- |
|
||
| Common stock, |
|
49 |
|
|
48 |
|
||
| Additional paid-in capital |
|
1,059,751 |
|
|
997,470 |
|
||
| Accumulated other comprehensive income (loss) |
|
1,165 |
|
|
(2,975 |
) |
||
| Accumulated deficit |
|
(599,067 |
) |
|
(464,406 |
) |
||
| Less treasury stock (28 shares as of December 31, 2023 and 2022) |
|
(132 |
) |
|
(132 |
) |
||
| Total stockholders' equity |
|
461,766 |
|
|
530,005 |
|
||
| Total liabilities and stockholders' equity | $ |
940,414 |
|
$ |
1,002,383 |
|
||
| GLAUKOS CORPORATION GAAP to Non-GAAP Reconciliations (in thousands, except per share amounts and percentage data) (unaudited) |
||||||||||||||||||||||||
| Q4 2023 | Q4 2022 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
| Cost of sales | $ |
18,891 |
|
$ |
(5,523 |
) |
(a) | $ |
13,368 |
|
$ |
17,222 |
|
$ |
(5,533 |
) |
(a) | $ |
11,689 |
|
||||
| Gross Margin |
|
77.1 |
% |
|
6.7 |
% |
|
83.8 |
% |
|
75.8 |
% |
|
7.8 |
% |
|
83.6 |
% |
||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling, general and administrative | $ |
63,034 |
|
$ |
(705 |
) |
(b) | $ |
62,329 |
|
$ |
51,927 |
|
$ |
(782 |
) |
(b) | $ |
51,145 |
|
||||
| Loss from operations | $ |
(38,622 |
) |
$ |
6,228 |
|
$ |
(32,394 |
) |
$ |
(33,734 |
) |
$ |
6,315 |
|
$ |
(27,419 |
) |
||||||
| Net loss | $ |
(36,779 |
) |
$ |
6,228 |
|
(c) | $ |
(30,551 |
) |
$ |
(31,460 |
) |
$ |
6,315 |
|
(c) | $ |
(25,145 |
) |
||||
| Basic and diluted net loss per share | $ |
(0.75 |
) |
$ |
0.12 |
|
$ |
(0.63 |
) |
$ |
(0.66 |
) |
$ |
0.13 |
|
$ |
(0.53 |
) |
||||||
(a) |
Cost of sales adjustments related to the acquisition of Avedro, Inc. (Avedro), including amortization of developed technology intangible assets of |
(b) |
Avedro acquisition-related expenses, including 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 |
| GLAUKOS CORPORATION GAAP to Non-GAAP Reconciliations (in thousands, except per share amounts and percentage data) (unaudited) |
||||||||||||||||||||||||
| Full Year 2023 | Full Year 2022 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
| Cost of sales | $ |
75,575 |
|
$ |
(22,092 |
) |
(a) | $ |
53,483 |
|
$ |
68,979 |
|
$ |
(22,166 |
) |
(a) | $ |
46,813 |
|
||||
| Gross Margin |
|
76.0 |
% |
|
7.0 |
% |
|
83.0 |
% |
|
75.6 |
% |
|
7.8 |
% |
|
83.5 |
% |
||||||
| Operating expenses: | ||||||||||||||||||||||||
| Selling, general and administrative | $ |
224,068 |
|
$ |
(2,820 |
) |
(b) | $ |
221,248 |
|
$ |
192,925 |
|
$ |
(3,315 |
) |
(b) | $ |
189,610 |
|
||||
| Research and development | $ |
138,768 |
|
$ |
- |
|
$ |
138,768 |
|
$ |
123,271 |
|
$ |
(127 |
) |
(c) | $ |
123,144 |
|
|||||
| Litigation-related settlement | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
(30,000 |
) |
$ |
30,000 |
|
(d) | $ |
- |
|
|||||
| Loss from operations | $ |
(128,700 |
) |
$ |
24,912 |
|
$ |
(103,788 |
) |
$ |
(82,313 |
) |
$ |
(4,392 |
) |
$ |
(86,705 |
) |
||||||
| Net loss | $ |
(134,661 |
) |
$ |
24,912 |
|
(e) | $ |
(109,749 |
) |
$ |
(99,195 |
) |
$ |
(4,392 |
) |
(e) | $ |
(103,587 |
) |
||||
| Basic and diluted net loss per share | $ |
(2.78 |
) |
$ |
0.51 |
|
$ |
(2.27 |
) |
$ |
(2.09 |
) |
$ |
(0.09 |
) |
$ |
(2.18 |
) |
||||||
(a) |
Cost of sales adjustments related to the acquisition of Avedro, Inc. (Avedro), including amortization of developed technology intangible assets of |
(b) |
Avedro acquisition-related expenses, including amortization expense of customer relationship intangible assets of |
(c) |
Stock-based compensation expense related to replacement awards from the acquisition of Avedro. |
(d) |
Settlement proceeds received related to the Company’s patent infringement litigation. |
(e) |
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 | |||||||||||||||||
4Q 2023 |
4Q 2022 |
3Q 2023 |
Reported | Operations (1) | Currency (2) | Reported | Operations (1) | Currency (2) | ||||||||||
| International Glaucoma | $ |
21,857 |
$ |
17,530 |
$ |
20,280 |
24.7 |
% |
22.5 |
% |
2.2 |
% |
7.8 |
% |
9.3 |
% |
(1.5 |
%) |
| Total Net Sales | $ |
82,365 |
$ |
71,227 |
$ |
78,048 |
15.6 |
% |
15.1 |
% |
0.5 |
% |
5.5 |
% |
5.9 |
% |
(0.4 |
%) |
(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 |
| Reported Sales vs. Prior Periods (in thousands) | ||||||||||
| Year-over-Year Percent Change | ||||||||||
2023 |
2022 |
Reported | Operations (1) | Currency (2) | ||||||
| International Glaucoma | $ |
85,560 |
$ |
69,577 |
23.0 |
% |
24.4 |
% |
(1.4 |
%) |
| Total Net Sales | $ |
314,711 |
$ |
282,862 |
11.3 |
% |
11.6 |
% |
(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/20240221978087/en/
Chris Lewis
Vice President, Investor Relations & Corporate Affairs
(949) 481-0510
clewis@glaukos.com
Source: Glaukos Corporation
FAQ
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