Harrow Announces Third Quarter 2024 Financial Results
Harrow (HROW) reported strong Q3 2024 results with revenues increasing 44% year-over-year to $49.3 million. The company posted a GAAP net loss of $(4.2) million and Adjusted EBITDA of $8.8 million. Key highlights include a 55% increase in VEVYE prescriptions over Q2 2024, 15% growth in IHEEZO customer unit demand, and operating cash flow of $3 million. The company maintained strong cash position with $72.6 million in cash and equivalents. Despite Q3 seasonal challenges, management expects Q4 revenue to meaningfully exceed 2024 guidance, driven by positive demand trends for VEVYE, IHEEZO, and TRIESENCE products.
Harrow (HROW) ha riportato risultati solidi per il terzo trimestre del 2024, con un aumento del fatturato del 44% rispetto all'anno precedente, raggiungendo 49,3 milioni di dollari. L'azienda ha registrato una perdita netta GAAP di $(4,2) milioni e un EBITDA rettificato di 8,8 milioni di dollari. Tra i punti salienti si segnalano un aumento del 55% nelle prescrizioni di VEVYE rispetto al secondo trimestre del 2024, una crescita del 15% nella domanda di unità per il prodotto IHEEZO e un flusso di cassa operativo di 3 milioni di dollari. L'azienda ha mantenuto una solida posizione di liquidità con 72,6 milioni di dollari in contante e equivalenti. Nonostante le sfide stagionali del terzo trimestre, la direzione prevede che il fatturato del quarto trimestre supererà in modo significativo le indicazioni del 2024, sostenuto da tendenze di domanda positive per i prodotti VEVYE, IHEEZO e TRIESENCE.
Harrow (HROW) reportó resultados sólidos en el tercer trimestre de 2024, con un aumento del 44% en los ingresos en comparación con el año anterior, alcanzando 49,3 millones de dólares. La compañía presentó una pérdida neta GAAP de $(4,2) millones y un EBITDA ajustado de 8,8 millones de dólares. Entre los aspectos destacados se incluye un aumento del 55% en las recetas de VEVYE en comparación con el segundo trimestre de 2024, un crecimiento del 15% en la demanda de unidades del cliente de IHEEZO y un flujo de efectivo operativo de 3 millones de dólares. La empresa mantuvo una sólida posición de liquidez con 72,6 millones de dólares en efectivo y equivalentes. A pesar de los desafíos estacionales en el tercer trimestre, la dirección espera que los ingresos del cuarto trimestre superen significativamente las proyecciones de 2024, impulsados por tendencias de demanda positivas para los productos VEVYE, IHEEZO y TRIESENCE.
Harrow (HROW)는 2024년 3분기에 강력한 실적을 보고했으며, 수익이 지난해 대비 44% 증가하여 4,930만 달러에 달했습니다. 이 회사는 GAAP 기준으로 순손실 $(420만 달러)을 기록했으며 조정된 EBITDA는 880만 달러를 기록했습니다. 주요 하이라이트로는 2024년 2분기 대비 VEVYE 처방이 55% 증가하였고, IHEEZO의 고객 단위 수요가 15% 성장하며, 운영 현금 흐름이 300만 달러였다는 점이 있습니다. 이 회사는 7260만 달러의 현금 및 현금성 자산으로 강력한 자산을 유지하고 있습니다. 3분기 계절적 도전에도 불구하고 경영진은 4분기 수익이 2024년 가이던스를 의미 있게 초과할 것으로 기대하고 있으며, 이는 VEVYE, IHEEZO 및 TRIESENCE 제품에 대한 긍정적인 수요 추세에 의해 추진됩니다.
Harrow (HROW) a rapporté des résultats solides pour le troisième trimestre 2024, avec des revenus en hausse de 44 % par rapport à l'année précédente, atteignant 49,3 millions de dollars. L'entreprise a enregistré une perte nette GAAP de $(4,2) millions et un EBITDA ajusté de 8,8 millions de dollars. Parmi les points saillants, on note une augmentation de 55 % des prescriptions de VEVYE par rapport au deuxième trimestre 2024, une croissance de 15 % de la demande d'unités clients pour IHEEZO, et un flux de trésorerie opérationnel de 3 millions de dollars. L'entreprise a maintenu une position de liquidité solide avec 72,6 millions de dollars en espèces et équivalents. Malgré les défis saisonniers du troisième trimestre, la direction s'attend à ce que le chiffre d'affaires du quatrième trimestre dépasse de manière significative les prévisions pour 2024, grâce à des tendances de demande positives pour les produits VEVYE, IHEEZO et TRIESENCE.
Harrow (HROW) berichtete starke Ergebnisse für das dritte Quartal 2024, mit einem Anstieg der Einnahmen um 44 % im Jahresvergleich auf 49,3 Millionen US-Dollar. Das Unternehmen meldete einen GAAP-Nettoverlust von $(4,2) Millionen und ein bereinigtes EBITDA von 8,8 Millionen US-Dollar. Zu den wichtigsten Highlights gehören ein Anstieg der VEVYE-Verschreibungen um 55 % im Vergleich zum zweiten Quartal 2024, ein Wachstum der Kundennachfrage für IHEEZO um 15 % und ein operativer Cashflow von 3 Millionen US-Dollar. Das Unternehmen hielt eine starke Liquiditätsposition mit 72,6 Millionen US-Dollar in Bar und Äquivalenten. Trotz saisonaler Herausforderungen im dritten Quartal erwartet das Management, dass die Einnahmen im vierten Quartal die Prognosen für 2024 erheblich übertreffen werden, angetrieben von positiven Nachfragetendenzen für die Produkte VEVYE, IHEEZO und TRIESENCE.
- 44% year-over-year revenue growth to $49.3 million
- 55% quarter-over-quarter growth in VEVYE prescriptions
- 15% quarter-over-quarter growth in IHEEZO demand
- Improved gross margin to 76% from 71% year-over-year
- Strong cash position of $72.6 million
- Positive operating cash flow of $3 million
- GAAP net loss of $(4.2) million
- Core net loss of $(1.6) million
- Decreased Adjusted EBITDA year-over-year from $9.2M to $8.8M
Insights
The Q3 2024 results show mixed signals but with positive underlying momentum. Revenue growth of
Key growth drivers include VEVYE's
The seasonal revenue shift from Q3 to Q4, combined with management's confidence in exceeding 2024 guidance, suggests strong momentum heading into year-end. The core metrics, while showing losses, indicate improving fundamentals with narrowing core net loss per share.
Third Quarter 2024 and Recent Selected Highlights:
-
Revenues increased
44% from in the prior-year quarter to$34.3 million $49.3 million -
GAAP net loss of
$(4.2) million -
Adjusted EBITDA of
$8.8 million -
Operating cash flow of
$3 million -
Cash and cash equivalents of
as of September 30, 2024$72.6 million -
VEVYE® total prescriptions up
55% over the second quarter of 2024 -
IHEEZO® customer unit demand volume up
15% over the second quarter of 2024 - TRIESENCE® October 2024 relaunch underway
- Expansion of access and affordability through multiple new partnerships
- First major Medicare Part D win for VEVYE with major plan sponsors
- Fourth quarter revenue indicates meaningful overperformance of 2024 revenue guidance from the capture of third quarter revenue slack and positive demand trends for VEVYE, IHEEZO, and TRIESENCE
“We are pleased with our progress in the third quarter of 2024,” said Mark L. Baum, Chief Executive Officer of Harrow. “Alongside
Third quarter 2024 figures of merit:
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Total revenues |
$ |
49,257,000 |
|
|
$ |
34,265,000 |
|
|
$ |
132,783,000 |
|
|
$ |
93,838,000 |
|
Gross margin |
|
76 |
% |
|
|
71 |
% |
|
|
74 |
% |
|
|
70 |
% |
Core gross margin(1) |
|
80 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
77 |
% |
Net loss |
|
(4,220,000 |
) |
|
|
(4,391,000 |
) |
|
|
(24,258,000 |
) |
|
|
(15,263,000 |
) |
Core net loss(1) |
|
(1,619,000 |
) |
|
|
(2,983,000 |
) |
|
|
(13,455,000 |
) |
|
|
(4,519,000 |
) |
Adjusted EBITDA(1) |
|
8,808,000 |
|
|
|
9,209,000 |
|
|
|
17,838,000 |
|
|
|
25,556,000 |
|
Basic and diluted net loss per share |
|
(0.12 |
) |
|
|
(0.13 |
) |
|
|
(0.68 |
) |
|
|
(0.48 |
) |
Core basic and diluted net loss per share(1) |
|
(0.05 |
) |
|
|
(0.09 |
) |
|
|
(0.38 |
) |
|
|
(0.14 |
) |
(1) |
Core gross margin, core net loss, core basic and diluted net loss per share (collectively, “Core Results”), and Adjusted EBITDA are non‑GAAP measures. For additional information, including a reconciliation of such Core Results and Adjusted EBITDA to the most directly comparable measures presented in accordance with GAAP, see the explanation of non‑GAAP measures and reconciliation tables at the end of this release. |
Conference Call and Webcast
The Company’s management team will host a conference call and live webcast tomorrow morning, Thursday, November 14, 2024, at 8:00 a.m. Eastern time to discuss the third quarter 2024 results and provide a business update. Participants can access the live conference call via webcast on the “Investors” page of Harrow’s website. To participate via telephone, please register in advance using this link. Upon registration, all telephone participants will receive a confirmation email with detailed instructions, including a unique dial-in number and PIN, for accessing the call. A replay of the conference call webcast will be archived on the Company’s website for one year.
About Harrow
Harrow, Inc. (Nasdaq: HROW) is a leading eyecare pharmaceutical company engaged in the discovery, development, and commercialization of innovative ophthalmic pharmaceutical products for the North American market. Harrow helps eyecare professionals preserve the gift of sight by making its portfolio of prescription and non‑prescription pharmaceutical products accessible and affordable to millions of patients each year. For more information about Harrow, please visit harrow.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the
HARROW, INC. |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
|||||
|
September 30,
|
|
December 31,
|
||
(unaudited) |
|
|
|||
ASSETS |
|||||
Cash and cash equivalents |
$ |
72,601,000 |
|
$ |
74,085,000 |
All other current assets |
|
74,461,000 |
|
|
65,397,000 |
Total current assets |
|
147,062,000 |
|
|
139,482,000 |
All other assets |
|
204,477,000 |
|
|
172,682,000 |
TOTAL ASSETS |
$ |
351,539,000 |
|
$ |
312,164,000 |
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||
Current liabilities |
$ |
95,005,000 |
|
$ |
49,344,000 |
Loans payable, net of unamortized debt discount |
|
186,057,000 |
|
|
183,172,000 |
All other liabilities |
|
12,856,000 |
|
|
9,237,000 |
TOTAL LIABILITIES |
|
293,918,000 |
|
|
241,753,000 |
TOTAL STOCKHOLDERS' EQUITY |
|
57,621,000 |
|
|
70,411,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
351,539,000 |
|
$ |
312,164,000 |
HARROW, INC. |
|||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Total revenues |
$ |
49,257,000 |
|
|
$ |
34,265,000 |
|
|
$ |
132,783,000 |
|
|
$ |
93,838,000 |
|
Cost of sales |
|
12,018,000 |
|
|
|
10,067,000 |
|
|
|
35,110,000 |
|
|
|
28,338,000 |
|
Gross profit |
|
37,239,000 |
|
|
|
24,198,000 |
|
|
|
97,673,000 |
|
|
|
65,500,000 |
|
Selling, general and administrative |
|
33,645,000 |
|
|
|
21,033,000 |
|
|
|
94,275,000 |
|
|
|
56,878,000 |
|
Research and development |
|
2,273,000 |
|
|
|
1,421,000 |
|
|
|
7,475,000 |
|
|
|
3,316,000 |
|
Total operating expenses |
|
35,918,000 |
|
|
|
22,454,000 |
|
|
|
101,750,000 |
|
|
|
60,194,000 |
|
Income (loss) from operations |
|
1,321,000 |
|
|
|
1,744,000 |
|
|
|
(4,077,000 |
) |
|
|
5,306,000 |
|
Total other expense, net |
|
5,521,000 |
|
|
|
4,596,000 |
|
|
|
19,506,000 |
|
|
|
19,333,000 |
|
Income tax expense |
|
(20,000 |
) |
|
|
(1,539,000 |
) |
|
|
(675,000 |
) |
|
|
(1,236,000 |
) |
Net loss attributable to Harrow, Inc. |
$ |
(4,220,000 |
) |
|
$ |
(4,391,000 |
) |
|
$ |
(24,258,000 |
) |
|
$ |
(15,263,000 |
) |
Net loss per share of common stock, basic and diluted |
$ |
(0.12 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.48 |
) |
HARROW, INC. |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
|||||||
|
For the Nine Months Ended
|
||||||
2024 |
|
|
2023 |
|
|||
Net cash (used in) provided by: |
|
|
|
||||
Operating activities |
$ |
(4,423,000 |
) |
|
$ |
(4,856,000 |
) |
Investing activities |
|
4,396,000 |
|
|
|
(152,350,000 |
) |
Financing activities |
|
(1,457,000 |
) |
|
|
126,546,000 |
|
Net change in cash and cash equivalents |
|
(1,484,000 |
) |
|
|
(30,660,000 |
) |
Cash and cash equivalents at beginning of the period |
|
74,085,000 |
|
|
|
96,270,000 |
|
Cash and cash equivalents at end of the period |
$ |
72,601,000 |
|
$ |
65,610,000 |
Non-GAAP Financial Measures
In addition to the Company’s results of operations determined in accordance with
Adjusted EBITDA
The Company defines Adjusted EBITDA as net loss, excluding the effects of stock‑based compensation and expenses, interest, taxes, depreciation, amortization, investment loss (income), net, and, if any and when specified, other non-recurring income or expense items. Management believes that the most directly comparable GAAP financial measure to Adjusted EBITDA is net loss. Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash (used in) provided by operating, investing, or financing activities as a measure of ability to meet cash needs.
The following is a reconciliation of Adjusted EBITDA, a non-GAAP measure, to the most comparable GAAP measure, net loss, for the three months and nine months ended September 30, 2024 and for the same periods in 2023:
HARROW, INC. |
|||||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|||||||||||||||
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
GAAP net loss |
$ |
(4,220,000 |
) |
|
$ |
(4,391,000 |
) |
|
$ |
(24,258,000 |
) |
|
$ |
(15,263,000 |
) |
Stock-based compensation and expenses |
|
4,385,000 |
|
|
|
4,476,000 |
|
|
|
12,825,000 |
|
|
|
11,521,000 |
|
Interest expense, net |
|
5,525,000 |
|
|
|
5,749,000 |
|
|
|
16,411,000 |
|
|
|
16,200,000 |
|
Income taxes |
|
20,000 |
|
|
|
1,539,000 |
|
|
|
675,000 |
|
|
|
1,236,000 |
|
Depreciation |
|
497,000 |
|
|
|
405,000 |
|
|
|
1,382,000 |
|
|
|
1,095,000 |
|
Amortization of intangible assets |
|
2,605,000 |
|
|
|
2,584,000 |
|
|
|
7,708,000 |
|
|
|
7,634,000 |
|
Investment loss (income), net |
|
- |
|
|
|
(1,348,000 |
) |
|
|
3,171,000 |
|
|
|
(2,676,000 |
) |
Other (income) expense, net |
|
(4,000 |
) |
|
195,000 |
|
|
(76,000 |
) |
|
5,809,000 |
(1) |
|||
Adjusted EBITDA | $ |
8,808,000 |
|
$ |
9,209,000 |
|
$ |
17,838,000 |
|
$ |
25,556,000 |
(1) |
Includes |
Core Results
Harrow Core Results, including core gross margin, core net loss, and core basic and diluted loss per share exclude (1) all amortization and impairment charges of intangible assets, excluding software development costs, (2) net gains and losses on investments and equity securities, including equity method gains and losses and equity valued at fair value through profit and loss (FVPL), and preferred stock dividends, and (3) gains/losses on forgiveness of debt. In certain periods, Core Results may also exclude fair value adjustments of financial assets in the form of options to acquire a company carried at FVPL, obligations related to product recalls, certain acquisition‑related items, restructuring charges/releases and associated items, related legal items, gains/losses on early extinguishment of debt or debt modifications, impairments of property, plant and equipment and software, as well as income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a
The following is a reconciliation of Core Results, non-GAAP measures, to the most comparable GAAP measures for the three months and nine months ended September 30, 2024 and for the same periods in 2023:
For the Three Months Ended September 30, 2024 |
|||||||||||||||||
GAAP
|
|
Amortization
|
|
Investment
|
|
Other
|
|
Core
|
|||||||||
Gross profit |
$ |
37,239,000 |
|
|
$ |
2,191,000 |
|
$ |
- |
|
$ |
- |
|
|
$ |
39,430,000 |
|
Gross margin |
|
76 |
% |
|
|
|
|
|
|
|
|
80 |
% |
||||
Operating income |
|
1,321,000 |
|
|
|
2,605,000 |
|
|
- |
|
|
- |
|
|
|
3,926,000 |
|
(Loss) income before taxes |
|
(4,200,000 |
) |
|
|
2,605,000 |
|
|
- |
|
|
(4,000 |
) |
|
|
(1,599,000 |
) |
Taxes |
|
(20,000 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(20,000 |
) |
Net (loss) income |
|
(4,220,000 |
) |
|
|
2,605,000 |
|
|
- |
|
|
(4,000 |
) |
|
|
(1,619,000 |
) |
Basic and diluted loss per share ($)(1) |
|
(0.12 |
) |
|
|
|
|
|
|
|
|
(0.05 |
) |
||||
Weighted average number
|
|
35,702,200 |
|
|
|
|
|
|
|
|
|
35,702,200 |
|
For the Nine Months Ended September 30, 2024 |
|||||||||||||||||
GAAP
|
|
Amortization
|
|
Investment
|
|
Other
|
|
Core
|
|||||||||
Gross profit |
$ |
97,673,000 |
|
|
$ |
6,471,000 |
|
$ |
- |
|
$ |
- |
|
|
$ |
104,144,000 |
|
Gross margin |
|
74 |
% |
|
|
|
|
|
|
|
|
78 |
% |
||||
Operating loss |
|
(4,077,000 |
) |
|
|
7,708,000 |
|
|
- |
|
|
- |
|
|
|
3,631,000 |
|
(Loss) income before taxes |
|
(23,583,000 |
) |
|
|
7,708,000 |
|
|
3,171,000 |
|
|
(76,000 |
) |
|
|
(12,780,000 |
) |
Taxes |
|
(675,000 |
) |
|
|
- |
|
|
- |
|
|
- |
|
|
|
(675,000 |
) |
Net (loss) income |
|
(24,258,000 |
) |
|
|
7,708,000 |
|
|
3,171,000 |
|
|
(76,000 |
) |
|
|
(13,455,000 |
) |
Basic and diluted loss
|
|
(0.68 |
) |
|
|
|
|
|
|
|
|
(0.38 |
) |
||||
Weighted average number
|
|
35,597,409 |
|
|
|
|
|
|
|
|
|
35,597,409 |
|
For the Three Months Ended September 30, 2023 |
|||||||||||||||||
GAAP
|
|
Amortization
|
|
Investment
|
|
Other
|
|
Core
|
|||||||||
Gross profit |
$ |
24,198,000 |
|
|
$ |
2,480,000 |
|
$ |
- |
|
|
$ |
- |
|
$ |
26,678,000 |
|
Gross margin |
|
71 |
% |
|
|
|
|
|
|
|
|
78 |
% |
||||
Operating income |
|
1,744,000 |
|
|
|
2,584,000 |
|
|
- |
|
|
|
- |
|
|
4,328,000 |
|
(Loss) income before taxes |
|
(2,852,000 |
) |
|
|
2,584,000 |
|
|
(1,348,000 |
) |
|
|
195,000 |
|
|
(1,421,000 |
) |
Taxes |
|
(1,539,000 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(1,539,000 |
) |
Net (loss) income |
|
(4,391,000 |
) |
|
|
2,584,000 |
|
|
(1,348,000 |
) |
|
|
195,000 |
|
|
(2,960,000 |
) |
Basic and diluted loss per share ($)(1) |
|
(0.13 |
) |
|
|
|
|
|
|
|
|
(0.09 |
) |
||||
Weighted average number
|
|
34,255,197 |
|
|
|
|
|
|
|
|
|
34,255,197 |
|
For the Nine Months Ended September 30, 2023 |
|||||||||||||||||
GAAP
|
|
Amortization
|
|
Investment
|
|
Other
|
|
Core
|
|||||||||
Gross profit |
$ |
65,500,000 |
|
|
$ |
7,174,000 |
|
$ |
- |
|
|
$ |
- |
|
$ |
72,674,000 |
|
Gross margin |
|
70 |
% |
|
|
|
|
|
|
|
|
77 |
% |
||||
Operating income |
|
5,306,000 |
|
|
|
7,634,000 |
|
|
- |
|
|
|
- |
|
|
12,940,000 |
|
(Loss) income before taxes |
|
(14,027,000 |
) |
|
|
7,634,000 |
|
|
(2,676,000 |
) |
|
|
5,786,000 |
|
|
(3,283,000 |
) |
Taxes |
|
(1,236,000 |
) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(1,236,000 |
) |
Net (loss) income |
|
(15,263,000 |
) |
|
|
7,634,000 |
|
|
(2,676,000 |
) |
|
|
5,786,000 |
|
|
(4,519,000 |
) |
Basic and diluted loss
|
|
(0.48 |
) |
|
|
|
|
|
|
|
|
(0.14 |
) |
||||
Weighted average number
|
|
31,689,947 |
|
|
|
|
|
|
|
|
|
31,689,947 |
|
(1) |
Core basic and diluted loss per share is calculated using the weighted-average number of shares of common stock outstanding during the period. Core basic and diluted loss per share also contemplates dilutive shares associated with equity‑based awards as described in Note 2 and elsewhere in the Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113897614/en/
Jamie Webb, Director of Communications and Investor Relations
jwebb@harrowinc.com
615-733-4737
Source: Harrow, Inc.
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