Outset Medical Reports Fourth Quarter and Full Year 2020 Financial Results
Outset Medical, Inc. (Nasdaq: OM) reported significant financial growth for the fourth quarter and full year ended December 31, 2020. Fourth-quarter revenue reached $17.2 million, a 143% increase year-over-year, while full-year revenue was $49.9 million, a 231% increase. Despite this growth, the company incurred a net loss of ($32.0) million in Q4 and ($79.3) million for the full year. Outset projects 2021 revenue between $89 million and $94 million, indicating a strong outlook with 78% to 88% anticipated growth over 2020.
- Fourth quarter 2020 revenue increased by 143% to $17.2 million compared to Q4 2019.
- Full year 2020 revenue increased by 231% to $49.9 million compared to 2019.
- Service revenue for the fourth quarter increased by 387% to $4.1 million.
- Manufactured the first Tablo consoles at the new Tijuana facility a quarter ahead of schedule.
- Strong guidance for 2021 predicts revenue growth of 78% to 88%.
- Net loss of ($32.0) million in Q4 2020, widening from ($19.4) million in Q4 2019.
- Gross margin remains negative at 2.4% for Q4 2020 and (26.1%) for the full year.
- Operating expenses increased significantly to $32.0 million in Q4 2020 from $15.8 million in Q4 2019.
Outset Medical, Inc. (Nasdaq: OM) (“Outset”), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today reported financial results for the fourth quarter and full year ended December 31, 2020.
Recent Highlights
-
Recorded net revenue of
$17.2 million in the fourth quarter and$49.9 million for the full year of 2020, representing143% and231% increases respectively, over the corresponding periods of 2019 -
Achieved GAAP gross margin of
2.4% for the fourth quarter of 2020, compared to (39.2% ) in the fourth quarter of 2019 - Manufactured the first Tablo consoles at Outset’s facility in Tijuana, Mexico during the first quarter 2021
- Appointed health care industry veteran and digital health expert Karen Drexler to the Board of Directors
“In the fourth quarter our team continued to outperform while building a solid foundation for growth through 2021 and beyond,” said Leslie Trigg, President and Chief Executive Officer. “We expanded our customer base, deepened our relationships with top health systems, and continued to deliver an exceptional Tablo home experience for patients and their caregivers. More recently, we manufactured the first Tablo consoles at our new facility in Mexico, one quarter ahead of schedule, marking a milestone achievement for a key strategic initiative.”
Fourth Quarter 2020 Financial Results
Revenue for the fourth quarter of 2020 was
Total gross profit for the fourth quarter of 2020 was
Operating expenses for the fourth quarter of 2020 were
Excluding stock-based compensation expense, non-GAAP operating expenses for the fourth quarter of 2020 were
Fourth quarter 2020 net loss was (
Full Year 2020 Financial Results
Revenue for the full year of 2020 was
Total gross loss for the full year of 2020 was (
Operating expenses for the full year of 2020 were
Excluding stock-based compensation expense, non-GAAP operating expenses for the full year of 2020 were
Full year 2020 net loss attributable to common stockholders was (
Total cash, including restricted cash, cash equivalents and short-term investments, was
Full Year 2021 Financial Guidance
Outset projects revenue for the full year 2021 to range from
First Quarter 2021 Financial Guidance
Outset projects revenue for the first quarter 2021 to range from
Webcast and Conference Call Details
Outset will host a conference call today, March 9, 2021, at 2:00 p.m. PT / 5:00 p.m. ET to discuss its fourth quarter and full year 2020 financial results. The dial-in numbers are (833) 614-1409 for domestic callers and (914) 987-7130 for international callers. The conference ID is 8495745. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.outsetmedical.com. The webcast will be archived on the website following the completion of the call.
Use of Non-GAAP Financial Measures
The Company may report non‐GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flow. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company’s financial measures under GAAP include stock-based compensation expense, as listed in the itemized reconciliations between GAAP and non‐GAAP financial measures included in this press release. Management has excluded the effects of this non-cash expense item in non‐GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non‐GAAP results are presented in the Appendix A of this press release.
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. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, profitability and outlook, statements regarding the Company’s overall business strategy, plans and objectives of management, as well as the Company’s expectations regarding the continuing impact of the COVID-19 pandemic on the Company and its operations as well as the impact on its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Outset’s public filings with the Securities and Exchange Commission, including Outset’s 424(B)(4) filed on December 3, 2020 in connection with the company’s secondary public offering. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise.
About Outset Medical, Inc.
Outset is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo™ Hemodialysis System, FDA cleared for use from the hospital to the home, represents a significant technological advancement that transforms the dialysis experience for patients and operationally simplifies it for providers. Tablo serves as a single enterprise solution that can be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere and by anyone. The integration of water purification and on-demand dialysate production enables Tablo to serve as a dialysis clinic on wheels with 2-way wireless data transmission and a proprietary data analytics platform powering a new holistic approach to dialysis care. Tablo is a registered trademark of Outset Medical, Inc.
Outset Medical, Inc. Condensed Statements of Operations (in thousands, except per share amounts) (unaudited) |
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Three Months Ended |
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December 31, |
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Years Ended December 31, |
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2020 |
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2019 |
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2020 |
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2019 |
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Revenue: |
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Product revenue |
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$ |
13,177 |
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$ |
6,249 |
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$ |
39,612 |
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$ |
13,750 |
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Service and other revenue |
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4,070 |
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836 |
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10,323 |
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1,328 |
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Total revenue |
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17,247 |
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7,085 |
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49,935 |
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15,078 |
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Cost of revenue: |
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Cost of product revenue (1) |
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14,917 |
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8,214 |
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57,035 |
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27,164 |
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Cost of service and other revenue |
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1,913 |
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1,651 |
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5,937 |
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5,716 |
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Total cost of revenue |
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16,830 |
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9,865 |
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62,972 |
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32,880 |
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Gross profit |
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417 |
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(2,780 |
) |
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(13,037 |
) |
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(17,802 |
) |
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Gross margin |
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2.4 |
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% |
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(39.2 |
) |
% |
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(26.1 |
) |
% |
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(118.1 |
) |
% |
Operating expenses: |
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Research and development (1) |
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7,784 |
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6,629 |
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28,850 |
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23,327 |
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Sales and marketing (1) |
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15,198 |
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6,883 |
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45,068 |
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20,259 |
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General and administrative (1) |
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9,050 |
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2,278 |
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30,512 |
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8,919 |
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Total operating expenses |
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32,032 |
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15,790 |
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104,430 |
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52,505 |
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Loss from operations |
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(31,615 |
) |
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(18,570 |
) |
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(117,467 |
) |
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(70,307 |
) |
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Other income (expense): |
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Interest income and other income, net |
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2 |
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374 |
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526 |
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2,485 |
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Interest expense |
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(430 |
) |
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(1,020 |
) |
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(2,891 |
) |
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(4,257 |
) |
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Change in fair value of redeemable convertible preferred stock warrant liability |
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— |
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(230 |
) |
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(93 |
) |
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3,800 |
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Loss on extinguishment of term loan |
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— |
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— |
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(1,567 |
) |
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— |
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Loss before provision for income taxes |
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(32,043 |
) |
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(19,446 |
) |
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(121,492 |
) |
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(68,279 |
) |
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Provision for income taxes |
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— |
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— |
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— |
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20 |
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Net loss |
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$ |
(32,043 |
) |
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$ |
(19,446 |
) |
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$ |
(121,492 |
) |
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$ |
(68,299 |
) |
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Net loss attributable to common stockholders, basic and diluted |
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$ |
(32,043 |
) |
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$ |
(19,446 |
) |
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$ |
(79,324 |
) |
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$ |
(85,461 |
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Net loss per share attributable to common stockholders, basic and diluted |
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$ |
(0.75 |
) |
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FAQ
What were Outset Medical's revenue results for Q4 2020?
Outset Medical reported revenue of $17.2 million for Q4 2020, representing a 143% increase year-over-year.
What is the full year revenue for Outset Medical for 2020?
For the full year 2020, Outset Medical reported revenue of $49.9 million, a 231% increase compared to 2019.
What is the projected revenue for Outset Medical in 2021?
Outset Medical projects revenue for 2021 to range from $89 million to $94 million, indicating 78% to 88% growth over 2020.
What was the net loss for Outset Medical in Q4 2020?
The net loss for Outset Medical in Q4 2020 was ($32.0) million.
How did Outset Medical's gross margin change in 2020?
Outset Medical's gross margin for Q4 2020 was 2.4%, an improvement from (39.2%) in Q4 2019.
Outset Medical, Inc.
NASDAQ:OMOM RankingsOM Latest NewsOM Stock Data
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Medical Devices
Electromedical & Electrotherapeutic Apparatus
United States of America
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