Silk Road Medical Announces Certain Preliminary Financial Data For Quarter Ended September 30, 2022

Rhea-AI Summary

Silk Road Medical (Nasdaq: SILK) announced preliminary financial data for Q3 2022, reporting an estimated revenue of $37.4 million, a 51% increase from $24.7 million in Q3 2021. Gross profit is estimated between $27.8 million and $28.2 million, resulting in a gross margin of 74% to 75%. Operating expenses rose to an estimated $37.2 million to $37.6 million, up 17-18% from the previous year. The estimated net loss decreased to between $10.2 million and $10.6 million, down from $13.9 million in Q3 2021. Cash reserves stand at $105.1 million.

Positive

• Estimated revenue increased by 51% year-over-year to $37.4 million.
• Estimated net loss reduced by 24-27% compared to Q3 2021, totaling between $10.2 million and $10.6 million.
• Estimated gross profit increased to between $27.8 million and $28.2 million.
• Manufacturing of commercial product commenced at the Minnesota facility, enhancing production capabilities.

Negative

• Operating expenses rose by 17-18% year-over-year to between $37.2 million and $37.6 million.
• Gross margin slightly decreased from 75% in Q3 2021 to between 74% and 75% in Q3 2022.

SUNNYVALE, Calif., Oct. 17, 2022 (GLOBE NEWSWIRE) -- Silk Road Medical, Inc. (Nasdaq: SILK), a company focused on reducing the risk of stroke and its devastating impact, today announced certain preliminary financial data for the quarter ended September 30, 2022.

Summary Preliminary Financial Data For Quarter Ended September 30, 2022

The company’s financial statements as of and for the three months ended September 30, 2022, are not yet available. Accordingly, the information presented below reflects the company’s estimates and expectations for the three months ended September 30, 2022, subject to the completion of its financial close process. As a result, these estimates may differ from the actual results that will be reflected in the company’s financial statements as of and for the three months ended September 30, 2022, when they are issued. These estimates may change. These estimates are not meant to be a comprehensive statement of the company’s financial position and results for this period. Accordingly, you should not place undue reliance on these estimates.

For the three months ended September 30, 2022, the company’s preliminary estimated revenue was $37.4 million, as compared to $24.7 million for the three months ended September 30, 2021, an increase of $12.7 million or 51% compared to three months ended September 30, 2021. The company’s preliminary estimated gross profit for the three months ended September 30, 2022 was between $27.8 million and $28.2 million, compared to $18.6 million for the three months ended September 30, 2021. The company’s preliminary estimated gross margin for the three months ended September 30, 2022 was between 74% and 75%, compared to 75% for the three months ended September 30, 2021, and compared to 73% for the three months ended June 30, 2022. The company’s estimated gross margin for the third quarter of 2022 increased in comparison to the second quarter of 2022 due to a benefit associated with a standard cost revaluation in the third quarter of 2022. During the third quarter of 2022, the company began to manufacture commercial product at its Minnesota facility. This milestone necessitated that the company revalue its standard costs at the end of the third quarter of 2022, which impacted gross profit for the quarter. The company’s estimated operating expenses were between $37.2 million and $37.6 million for the three months ended September 30, 2022, compared to $31.9 million in the three months ended September 30, 2021, which represents an increase of between 17% and 18%, compared to the three months ended September 30, 2021. For the three months ended September 30, 2022, the company’s estimated net loss was between $10.2 million and $10.6 million, as compared to $13.9 million for the three months ended September 30, 2021, a decrease of between $3.3 million and $3.7 million or between 24% and 27%, compared to the three months ended September 30, 2021. As of September 30, 2022, the company’s preliminary estimated cash and cash equivalents and short-term investments balance was $105.1 million. PricewaterhouseCoopers LLP has not audited, reviewed, compiled or performed any procedures with respect to such preliminary financial information.

As of July 2022, over 50,000 TCAR procedures had been performed globally, including approximately 4,700 procedures performed in the second quarter of 2022 and over 5,250 procedures performed in the third quarter of 2022. On October 12, 2022, the Company received approval from the Japan Association for the Advancement of Medical Equipment for the ENROUTE NPS and the ENROUTE stent.

About Silk Road Medical
Silk Road Medical, Inc. (NASDAQ: SILK), is a medical device company located in Sunnyvale, California, and Plymouth, Minnesota, that is focused on reducing the risk of stroke and its devastating impact. The company has pioneered a new approach for the treatment of carotid artery disease called TransCarotid Artery Revascularization (TCAR). TCAR is a clinically proven procedure combining surgical principles of neuroprotection with minimally invasive endovascular techniques to treat blockages in the carotid artery at risk of causing a stroke. For more information on how Silk Road Medical is delivering brighter patient outcomes through brighter clinical thinking, visit www.silkroadmed.com and connect on Twitter, LinkedIn and Facebook.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements include statements regarding the Company’s financial results for the third quarter of 2022. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. Silk Road Medical disclaims any obligation to update these forward-looking statements.

Investor Contact:
Lynn Lewis or Marissa Bych
Gilmartin Group
investors@silkroadmed.com

Media:
Michael Fanucchi
Silk Road Medical
mfanucchi@silkroadmed.com

FAQ

What was Silk Road Medical's estimated revenue for Q3 2022?

Silk Road Medical reported an estimated revenue of $37.4 million for Q3 2022.

How much did Silk Road Medical's net loss decrease in Q3 2022?

The estimated net loss decreased to between $10.2 million and $10.6 million in Q3 2022, down from $13.9 million in Q3 2021.

What were the estimated operating expenses for Silk Road Medical in Q3 2022?

Silk Road Medical's estimated operating expenses for Q3 2022 were between $37.2 million and $37.6 million.

What is Silk Road Medical's estimated cash balance as of September 30, 2022?

As of September 30, 2022, Silk Road Medical's preliminary estimated cash and cash equivalents and short-term investments balance was $105.1 million.

What is the gross margin of Silk Road Medical for Q3 2022?

Silk Road Medical's estimated gross margin for Q3 2022 was between 74% and 75%.