Silk Road Medical Reports Second Quarter 2021 Financial Results

Rhea-AI Summary

Silk Road Medical (SILK) reported impressive financial results for Q2 2021, with revenue rising to $26.5 million, a 75% increase compared to Q2 2020. The gross profit also surged to $19.9 million, resulting in a gross margin of 75%. Despite a net loss of $10.5 million, operating expenses rose 56% to $29.8 million, primarily due to increased personnel and commercialization efforts. The company revised its 2021 revenue guidance, projecting $104 million to $109 million, which represents 38% to 45% growth over 2020.

Positive

• Q2 2021 revenue increased 75% year-over-year to $26.5 million.
• Gross profit reached $19.9 million, with a gross margin of 75%.
• Revised 2021 revenue guidance of $104 million to $109 million indicates strong growth prospects.

Negative

• Net loss of $10.5 million for Q2 2021, slightly worse than the $10.4 million loss in Q2 2020.
• Operating expenses increased 56% to $29.8 million, driven by personnel and commercialization costs.

SUNNYVALE, Calif., July 29, 2021 (GLOBE NEWSWIRE) -- Silk Road Medical, Inc. (Nasdaq: SILK), a company focused on reducing the risk of stroke and its devastating impact, today reported financial results for the quarter ended June 30, 2021.

“Our second quarter results reflect excellent commercial execution and broad strength across our business, as TCAR utilization increased in all segments of our trained physician base,” said Erica Rogers, President and Chief Executive Officer of Silk Road Medical. “We remain very optimistic about the future of TCAR, and we are particularly excited about the new evidence supporting TCAR in standard surgical risk patients as we prepare to expand our addressable market to include this patient population.”

Second Quarter 2021 Financial Results
Revenue for the second quarter of 2021 was $26.5 million, an increase of $11.4 million or 75%, compared to the second quarter of 2020. Second quarter revenue in 2020 included the recognition of $1.3 million in deferred revenue due to a decrease in the provision for sales returns related to certain prior sales with a shorter shelf life, coupled with the downward trend in the company’s historical returns rate. Excluding the contribution of the $1.3 million, second quarter revenue in 2021 increased 91% compared to the second quarter of 2020.

Gross profit for the second quarter of 2021 was $19.9 million compared to $9.8 million for the second quarter of 2020. Gross margin for the second quarter of 2021 increased to 75% compared to 65% in the second quarter of 2020. The prior period gross margin included unfavorable production variances as a result of temporarily idled manufacturing operations and lower demand due to COVID-19.

Operating expenses were $29.8 million for the second quarter of 2021, compared to $19.2 million in the corresponding prior year period, which represents an increase of 56%. The increase was driven by growth in personnel and continued commercialization and product development initiatives as well as the resumption of travel, tradeshow and other expenses as the impacts of COVID-19 declined compared to the second quarter of 2020.

Net loss was $10.5 million in the second quarter of 2021, or a loss of $0.31 per share, as compared to a loss of $10.4 million, or $0.32 per share, in the corresponding period of the prior year.

Cash, cash equivalents, and short-term investments were $128.1 million as of June 30, 2021.

2021 Financial Guidance

Silk Road Medical projects revenue for the full year 2021 to range from $104 million to $109 million, which represents 38% to 45% growth over the company’s prior year revenue. This compares to previous revenue guidance of $103 million to $108 million.

Conference Call
Silk Road Medical will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Thursday, July 29, 2021 to discuss its second quarter 2021 financial results. The call may be accessed through an operator by calling (844) 883-3861 for domestic callers and (574) 990-9820 for international callers using conference ID: 8730669. A live and archived webcast of the event will be available at https://investors.silkroadmed.com/.  

About Silk Road Medical
Silk Road Medical, Inc. (NASDAQ: SILK), is a medical device company located in Sunnyvale, California, that is focused on reducing the risk of stroke and its devastating impact. The company’s flagship procedure, TransCarotid Artery Revascularization (TCAR), is clinically proven 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 impact of COVID-19 on our business, financial guidance, progress made on achieving our corporate goals, and the overall strength of our business and culture. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled Risk Factors and elsewhere in our filing made with the Securities and Exchange Commission in Silk Road’s Quarterly Report on Form 10-Q filing made with the Securities and Exchange Commission on May 10, 2021. 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.

Investors:
Lynn Lewis or Caroline Paul
Gilmartin Group
investors@silkroadmed.com

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

SILK ROAD MEDICAL, INC.
Statements of Operations Data
(Unaudited, in thousands, except share and per share data)

								Three Months Ended June 30,								Six Months Ended June 30,
									2021				2020				2021				2020
Revenue								$	26,456			$	15,094			$	48,509			$	34,027
Cost of goods sold									6,598				5,336				12,137				10,586
					Gross profit				19,858				9,758				36,372				23,441
Operating expenses:
	Research and development								7,261				3,393				12,744				6,522
	Selling, general and administrative								22,549				15,758				43,743				35,450
					Total operating expenses				29,810				19,151				56,487				41,972
					Loss from operations				(9,952	)			(9,393	)			(20,115	)			(18,531	)
Interest income									47				299				142				702
Interest expense									(628	)			(1,203	)			(1,250	)			(2,406	)
Other income (expense), net									(6	)			(56	)			(10	)			(59	)
					Net loss				(10,539	)			(10,353	)			(21,233	)			(20,294	)
Other comprehensive loss:
	Unrealized gain (loss) on investments, net								(3	)			(126	)			(36	)			314
Net change in other comprehensive loss									(3	)			(126	)			(36	)			314
Net loss and comprehensive loss								$	(10,542	)		$	(10,479	)		$	(21,269	)		$	(19,980	)
Net loss per share, basic and diluted								$	(0.31	)		$	(0.32	)		$	(0.62	)		$	(0.63	)
Weighted average common shares used to compute net loss per share, basic and diluted									34,534,099				32,682,360				34,435,812				32,010,335

SILK ROAD MEDICAL, INC.
Balance Sheets Data
(Unaudited, in thousands)

								June 30, 2021				December 31, 2020
Assets
Current assets
	Cash and cash equivalents							$	101,849			$	69,466
	Short-term investments								26,293				78,016
	Accounts receivable, net								11,747				9,070
	Inventories								12,771				9,989
	Prepaid expenses and other current assets								5,877				6,787
					Total current assets				158,537				173,328
	Property and equipment, net								3,428				2,844
	Restricted cash								310				310
	Other non-current assets								5,931				2,832
					Total assets			$	168,206			$	179,314
Liabilities and stockholders' equity
Current liabilities
	Accounts payable							$	1,958			$	2,598
	Accrued liabilities								14,705				16,957
					Total current liabilities				16,663				19,555
	Long-term debt								48,614				48,533
	Other liabilities								6,791				3,726
					Total liabilities				72,068				71,814
Stockholders' equity
	Preferred stock, $0.001 par value								-				-
	Common stock, $0.001 par value								35				34
Additional paid-in capital									356,224				346,318
Accumulated other comprehensive income									3				39
Accumulated deficit									(260,124	)			(238,891	)
					Total stockholders' equity				96,138				107,500
					Total liabilities and stockholders' equity			$	168,206			$	179,314

 

FAQ

What were Silk Road Medical's revenue figures for Q2 2021?

Silk Road Medical reported revenue of $26.5 million for Q2 2021.

What is the forecasted revenue range for Silk Road Medical in 2021?

The company projects full year 2021 revenue to range from $104 million to $109 million.

What was Silk Road Medical's gross profit in Q2 2021?

The gross profit for Q2 2021 was $19.9 million.

How did Silk Road Medical's operating expenses change in Q2 2021?

Operating expenses increased by 56% to $29.8 million in Q2 2021.

What was the net loss for Silk Road Medical in Q2 2021?

Silk Road Medical experienced a net loss of $10.5 million in Q2 2021.