Inari Medical Reports Fourth Quarter 2023 Financial Results
- Revenue for Q4 2023 was $132.1 million, a 22.6% increase over Q4 2022.
- GAAP operating loss was $9.3 million in Q4 2023, compared to $5.9 million in Q4 2022.
- Non-GAAP operating loss was $0.3 million in Q4 2023, compared to $5.9 million in Q4 2022.
- Inari closed the LimFlow acquisition on November 15, 2023.
- The company completed enrollment in the PEERLESS randomized controlled trial.
- Full year 2023 revenue was $493.6 million, up 28.7% from the prior year.
- Inari expects revenue of $580-595 million for full year 2024, with a target of achieving sustained operating profitability in the first half of 2025.
- None.
Insights
The reported revenue growth of 22.6% for Inari Medical's fourth quarter and 28.7% for the full year is a strong indicator of the company's market penetration and the successful adoption of its medical procedures. The detailed financial results, including the gross margin remaining robust at around 87% despite scaling operations, suggest efficient cost management and a potentially sustainable business model. However, the GAAP operating losses reported both quarterly and annually, although narrower year-over-year, highlight ongoing investments in expansion and R&D. This is a critical consideration for investors, as it suggests a strategic prioritization of growth over immediate profitability, which is often the case in the medical device industry.
Furthermore, the LimFlow acquisition and related costs, although contributing to the operating loss, represent strategic positioning in the market. The acquisition is likely to enhance Inari's product portfolio and could lead to long-term revenue growth. The company's projection of reaching sustained operating profitability by the first half of 2025 can be interpreted as a confident outlook on the success of these investments. However, it is essential for stakeholders to monitor the integration of LimFlow and the subsequent financial impact to assess the accuracy of these projections.
The completion of enrollment in the PEERLESS randomized controlled trial (RCT) is a significant milestone for Inari Medical. RCTs are the gold standard for evaluating the efficacy and safety of medical treatments. Successful trial outcomes can lead to increased market adoption and potentially drive revenue growth. The emphasis on generating high-level clinical evidence is a positive sign for healthcare professionals and patients, indicating a commitment to proving the value and effectiveness of Inari's therapies.
From a research perspective, the ability to establish their therapy as a standard of care for venous thromboembolism (VTE) could not only benefit patient outcomes but also significantly expand the company's market share. The implications of such clinical advancements are substantial, potentially leading to a stronger competitive position and partnerships within the healthcare sector.
Examining Inari Medical's commercial traction across emerging therapies and international expansion, it is evident that the company is working to diversify its revenue streams and reduce reliance on any single market or product line. The global commercial expansion and introduction of new products are likely drivers behind the reported revenue increase. This diversification strategy can shield the company from localized economic downturns and changes in regional healthcare policies.
The provided revenue guidance for 2024, with an expected growth of approximately 17.5% to 20.5%, suggests a confident yet conservative forecast, likely accounting for market uncertainties and the integration of new acquisitions. For stakeholders, this guidance, along with the anticipated profitability timeline, will be key indicators of the company's future performance and its ability to deliver on strategic initiatives.
IRVINE, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today reported financial results for its fourth quarter and full year ended December 31, 2023.
Fourth Quarter Financial and Recent Business Highlights
- Generated revenue of
$132.1 million in Q4 of 2023, up22.6% over the same quarter last year. - GAAP operating loss was
$9.3 million in Q4 of 2023, compared to a$5.9 million operating loss in the same quarter of last year. - Non-GAAP operating loss was
$0.3 million in Q4 of 2023, compared to a$5.9 million non-GAAP operating loss in the same quarter of last year. - Closed LimFlow acquisition on November 15, 2023.
- Completed enrollment in the PEERLESS randomized controlled trial.
“Our solid fourth quarter performance was driven by strong underlying procedural growth and crisp execution across our three growth pillars led by our core VTE business, with meaningful contributions from emerging therapies and international geographies,” said Drew Hykes, CEO of Inari Medical. "We also closed on the acquisition of LimFlow in mid-November. In terms of clinical evidence generation, the completion of enrollment in PEERLESS, our first RCT, represents an important step forward in our commitment to generating the highest level of clinical evidence. Taken together, these efforts will result in the establishment of our therapy as the standard of care for VTE. With a strong VTE foundation and encouraging commercial traction across emerging therapies and international, we remain confident in our ability to generate sustainable growth for many years to come. Most importantly, we remain fully committed to advancing our mission of addressing major unmet needs for patients."
Fourth Quarter 2023 Financial Results
Revenue was
Gross profit was
Operating expenses for the fourth quarter of 2023 were
GAAP operating loss was
Non-GAAP operating loss was
Net loss was
Full Year 2023 Financial Results
Revenue was
Gross profit was
Operating expenses for the full year of 2023 were
GAAP operating loss was
Non-GAAP operating loss was
Net loss was
Full Year 2024 Revenue Guidance
- Inari expects full year 2024 revenue of
$580 million to$595 million , reflecting growth of approximately17.5% to20.5% over 2023. - The company still expects to reach sustained operating profitability in the first half of 2025.
Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the fourth quarter and full year 2023 financial results and acquisition of LimFlow after market close on February 28, 2024 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live by dialing (844) 825-9789 for domestic callers or (412) 317-5180 for international callers. The live webinar and presentation may be accessed by visiting the Events Section of the Inari investor relations website at ir.inarimedical.com.
Use of Non-GAAP Financial Measures
This press release contains references to non-GAAP operating income (loss), which is considered a non-GAAP financial measure. This means that non-GAAP operating income (loss) is determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). As used by Inari, non-GAAP operating income (loss) excludes from GAAP operating income (loss) the following items: amortization of acquired intangible assets and acquisition-related costs. Beginning in the fourth quarter of 2023, we began presenting non-GAAP operating income (loss) to exclude these charges because we believe these charges are significantly impacted by the timing and valuation of acquisitions, such as our LimFlow acquisition in the fourth quarter of 2023. Our management believes the presentation of non-GAAP operating income (loss) is useful because it provides meaningful comparisons to prior periods and provides visibility to our underlying operating performance and an additional means to evaluate the cost and expense trends excluding the impact of these acquisition-related items, which are not related to our core business operations.
Our definition of non-GAAP operating income (loss) may differ from similarly titled measures used by others. Non-GAAP operating income (loss) should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. We encourage investors to review the reconciliation of non-GAAP operating income (loss) to GAAP operating income (loss), which has been provided in the financial statement tables included in this press release.
About Inari Medical, Inc.
Patients first. No small plans. Take care of each other. These are the guiding principles that form the ethos of Inari Medical. We are committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underserved health needs. In addition to our purpose-built solutions, we leverage our capabilities in education, clinical research, and program development to improve patient outcomes. We are passionate about our mission to establish our treatments as the standard of care for venous disease, including venous thromboembolism, chronic venous disease, and beyond. We are just getting started.
Forward Looking Statements
Statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include expectations regarding Inari’s core business, its ability to integrate LimFlow, expectations regarding future growth, Inari's ability to meet customers' needs, and timing for achieving sustained operating profitability, and are based on Inari’s current expectations, forecasts, and assumptions. Forward-looking statements are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2023, and in Inari’s other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.
Investor Contact:
John Hsu, CFA
VP, Investor Relations
949-658-3889
IR@inarimedical.com
| INARI MEDICAL, INC. | |||||||||||||||
| Consolidated Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Years ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | $ | 132,094 | $ | 107,771 | $ | 493,632 | $ | 383,471 | |||||||
| Cost of goods sold | 17,006 | 13,128 | 59,068 | 44,506 | |||||||||||
| Gross profit | 115,088 | 94,643 | 434,564 | 338,965 | |||||||||||
| Operating expenses | |||||||||||||||
| Research and development | 22,892 | 20,412 | 87,533 | 74,221 | |||||||||||
| Selling, general and administrative | 101,495 | 80,122 | 361,063 | 292,843 | |||||||||||
| Total operating expenses | 124,387 | 100,534 | 448,596 | 367,064 | |||||||||||
| Loss from operations | (9,299 | ) | (5,891 | ) | (14,032 | ) | (28,099 | ) | |||||||
| Other income (expense) | |||||||||||||||
| Interest income | 2,714 | 970 | 15,613 | 1,852 | |||||||||||
| Interest expense | (69 | ) | (74 | ) | (196 | ) | (294 | ) | |||||||
| Other income | 3,478 | 187 | 2,861 | 356 | |||||||||||
| Total other income | 6,123 | 1,083 | 18,278 | 1,914 | |||||||||||
| (Loss) income before income taxes | (3,176 | ) | (4,808 | ) | 4,246 | (26,185 | ) | ||||||||
| Provision for income taxes | 1,491 | 990 | 5,882 | 3,082 | |||||||||||
| Net loss | $ | (4,667 | ) | $ | (5,798 | ) | $ | (1,636 | ) | $ | (29,267 | ) | |||
| Other comprehensive income (loss) | |||||||||||||||
| Foreign currency translation adjustments | 10,002 | 222 | 9,864 | (592 | ) | ||||||||||
| Unrealized gain (loss) on available-for-sale debt securities | 41 | 1,572 | (1,828 | ) | 1,843 | ||||||||||
| Total other comprehensive income | 10,043 | 1,794 | 8,036 | 1,251 | |||||||||||
| Comprehensive income (loss) | $ | 5,376 | $ | (4,004 | ) | $ | 6,400 | $ | (28,016 | ) | |||||
| Net loss per share | |||||||||||||||
| Basic | $ | (0.08 | ) | $ | (0.11 | ) | $ | (0.03 | ) | $ | (0.55 | ) | |||
| Diluted | $ | (0.08 | ) | $ | (0.11 | ) | $ | (0.03 | ) | $ | (0.55 | ) | |||
| Weighted average common shares used to compute net loss per share | |||||||||||||||
| Basic | 57,639,591 | 53,610,347 | 56,770,657 | 52,837,674 | |||||||||||
| Diluted | 57,639,591 | 53,610,347 | 56,770,657 | 52,837,674 | |||||||||||
| INARI MEDICAL, INC. | |||||||
| Consolidated Balance Sheets | |||||||
| (in thousands, except share data) | |||||||
| December 31, 2023 | December 31, 2022 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 38,597 | $ | 60,222 | |||
| Restricted cash | 611 | — | |||||
| Short-term investments in debt securities | 76,855 | 266,179 | |||||
| Accounts receivable, net | 70,119 | 58,611 | |||||
| Inventories, net | 42,900 | 32,581 | |||||
| Prepaid expenses and other current assets | 6,481 | 5,312 | |||||
| Total current assets | 235,563 | 422,905 | |||||
| Property and equipment, net | 20,929 | 21,655 | |||||
| Operating lease right-of-use assets | 48,407 | 50,703 | |||||
| Goodwill | 214,335 | — | |||||
| Intangible assets | 150,884 | — | |||||
| Deposits and other assets | 4,117 | 8,889 | |||||
| Total assets | $ | 674,235 | $ | 504,152 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 10,577 | $ | 7,659 | |||
| Payroll-related accruals | 48,706 | 38,955 | |||||
| Accrued expenses and other current liabilities | 15,364 | 8,249 | |||||
| Operating lease liabilities, current portion | 1,692 | 1,311 | |||||
| Total current liabilities | 76,339 | 56,174 | |||||
| Operating lease liabilities, noncurrent portion | 30,355 | 30,976 | |||||
| Deferred tax liability | 36,231 | — | |||||
| Other long-term liability | 66,400 | — | |||||
| Total liabilities | 209,325 | 87,150 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 58 | 54 | |||||
| Additional paid in capital | 504,453 | 462,949 | |||||
| Accumulated other comprehensive income | 8,885 | 849 | |||||
| Accumulated deficit | (48,486 | ) | (46,850 | ) | |||
| Total stockholders' equity | 464,910 | 417,002 | |||||
| Total liabilities and stockholders' equity | $ | 674,235 | $ | 504,152 | |||
| INARI MEDICAL, INC. | |||||||||||||||
| Reconciliation of GAAP Operating Loss to Non-GAAP Operating Loss | |||||||||||||||
| (in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended December 31, | Years ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| GAAP Operating loss | $ | (9,299 | ) | $ | (5,891 | ) | $ | (14,032 | ) | $ | (28,099 | ) | |||
| Non-GAAP Adjustments: | |||||||||||||||
| Amortization of acquired intangible assets | 1,255 | — | 1,255 | — | |||||||||||
| Acquisition-related expense (a) | 7,725 | — | 10,406 | — | |||||||||||
| Non-GAAP Operating loss | $ | (319 | ) | $ | (5,891 | ) | $ | (2,371 | ) | $ | (28,099 | ) | |||
________________
(a) For three months ended December 31, 2023, acquisition related expenses included
Revenue Disaggregation
Commencing in the fourth quarter of 2023, we began presenting revenue bifurcated between VTE and Emerging Therapies. The following table presents the amount of revenue in VTE and Emerging Therapies recognized for the periods presented (in thousands, unaudited):
| Three Months Ended December 31, | Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended March 31, | ||||||||
| 2023 | 2023 | 2023 | 2023 | ||||||||
| VTE | $ | 126,671 | $ | 121,460 | $ | 114,086 | $ | 114,058 | |||
| Emerging Therapies | 5,423 | 4,906 | 4,919 | 2,109 | |||||||
| Total Revenue | $ | 132,094 | $ | 126,366 | $ | 119,005 | $ | 116,167 | |||
| Three Months Ended December 31, | Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended March 31, | ||||||||
| 2022 | 2022 | 2022 | 2022 | ||||||||
| VTE | $ | 105,978 | $ | 95,980 | $ | 92,721 | $ | 86,752 | |||
| Emerging Therapies | 1,793 | 224 | 23 | — | |||||||
| Total Revenue | $ | 107,771 | $ | 96,204 | $ | 92,744 | $ | 86,752 | |||
FAQ
What was Inari Medical's revenue in Q4 2023?
What was Inari Medical's GAAP operating loss in Q4 2023?
What was Inari Medical's non-GAAP operating loss in Q4 2023?
When did Inari Medical close the LimFlow acquisition?
What trial did Inari Medical complete enrollment in?
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When does Inari Medical aim to achieve sustained operating profitability?
