Silk Road Medical Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Silk Road Medical, Inc. (Nasdaq: SILK) reported Q2 2022 revenue of $33.2 million, a 25% increase year-over-year, driven by higher TCAR adoption. Gross profit rose to $24.2 million, though gross margin slightly decreased to 73% due to manufacturing expansion costs. Operating expenses increased by 29% to $38.4 million, leading to a net loss of $15.4 million, or $0.44 per share. The company has $108.9 million in cash and projects 2022 revenue between $128 million and $133 million, reflecting 26% to 31% growth.

Positive

• Revenue increased by 25% year-over-year to $33.2 million.
• Gross profit rose to $24.2 million.
• Secured a $250 million debt facility.
• Projected 2022 revenue growth of 26% to 31%.

Negative

• Net loss increased to $15.4 million compared to $10.5 million last year.
• Operating expenses rose by 29% to $38.4 million.

SUNNYVALE, Calif., July 26, 2022 (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 three months ended June 30, 2022.

“We achieved several important milestones in the second quarter. We expanded our FDA label and Medicare coverage for the use of TCAR in standard surgical risk patients, formally initiated our ROADSTER 3 post approval study, and secured access to a $250 million debt facility,” said Erica Rogers, CEO of Silk Road Medical. “We also gained meaningful market share through strong physician utilization as we continue to establish TCAR as the minimally-invasive standard of care in stroke prevention, evidenced by recently eclipsing 50,000 global TCAR procedures.”

Second Quarter 2022 Financial Results
Revenue for the second quarter of 2022 was $33.2 million, an increase of $6.7 million, or 25%, compared to the second quarter of 2021. Growth was driven primarily by increased TCAR adoption.

Gross profit for the second quarter of 2022 was $24.2 million compared to $19.9 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 73% compared to 75% for the second quarter of 2021. Gross margin was primarily impacted by continued manufacturing expansion costs at our new Minnesota facility.

Operating expenses were $38.4 million for the second quarter of 2022, compared to $29.8 million in the comparable prior year period, which represents an increase of 29%. The increase was driven by increased headcount in our commercial and R&D organizations, along with continued investments in new and ongoing R&D programs.

Net loss was $15.4 million in the second quarter of 2022, or $0.44 per share, as compared to a loss of $10.5 million, or $0.31 per share, in the corresponding period of the prior year.

Cash, cash equivalents and short-term investments were $108.9 million as of June 30, 2022.

2022 Financial Guidance
Silk Road Medical projects revenue for the full year 2022 to range from $128 million to $133 million, which represents 26% to 31% growth over the company’s prior year revenue.

Conference Call
Those interested in listening to the conference call should register online using this link. Participants are encouraged to register more than 15 minutes before the start of the call. A live and replay version of the webcast 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, 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 financial guidance, progress made on achieving our corporate goals, and the overall strength of our business. 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, 2022. 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

SILK ROAD MEDICAL, INC.

Statements of Operations Data

(unaudited, in thousands, except share and per share data)

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2022				2021				2022					2021
Revenue	$	33,173			$	26,456			$	61,193			$	48,509
Cost of goods sold		9,012				6,598				17,588				12,137
Gross profit		24,161				19,858				43,605				36,372
Operating expenses:
Research and development		10,655				7,261				18,778				12,744
Selling, general and administrative		27,700				22,549				54,975				43,743
Total operating expenses		38,355				29,810				73,753				56,487
Loss from operations		(14,194	)			(9,952	)			(30,148	)			(20,115	)
Interest income		122				47				134				142
Interest expense		(1,031	)			(628	)			(1,652	)			(1,250	)
Loss on debt extinguishment		(245	)			—				(245	)			—
Other income (expense), net		(50	)			(6	)			(166	)			(10	)
Net loss		(15,398	)			(10,539	)			(32,077	)			(21,233	)
Other comprehensive loss:
Change in unrealized gain (loss) on investments, net		(2	)			(3	)			(2	)			(36	)
Net change in other comprehensive loss		(2	)			(3	)			(2	)			(36	)
Net loss and comprehensive loss	$	(15,400	)		$	(10,542	)		$	(32,079	)		$	(21,269	)
Net loss per share, basic and diluted	$	(0.44	)		$	(0.31	)		$	(0.91	)		$	(0.62	)
Weighted average common shares used to compute net loss per share, basic and diluted		35,143,178				34,534,099				35,083,569				34,435,812

SILK ROAD MEDICAL, INC.

Balance Sheets Data

(unaudited, in thousands)

	June 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	87,637			$	110,231
Short-term investments		21,234				—
Accounts receivable, net		15,779				11,832
Inventories		17,616				17,851
Prepaid expenses and other current assets		4,653				3,412
Total current assets		146,919				143,326
Property and equipment, net		9,755				7,697
Restricted cash		232				232
Other non-current assets		5,815				5,370
Total assets	$	162,721			$	156,625
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	3,666			$	2,379
Accrued liabilities		17,575				19,802
Short-term debt		—				3,905
Total current liabilities		21,241				26,086
Long-term debt		74,033				44,786
Other liabilities		7,418				6,513
Total liabilities		102,692				77,385
Stockholders' equity
Preferred stock, $0.001 par value		—				—
Common stock, $0.001 par value		35				35
Additional paid-in capital		380,775				367,907
Accumulated other comprehensive income		(2	)			—
Accumulated deficit		(320,779	)			(288,702	)
Total stockholders' equity		60,029				79,240
Total liabilities and stockholders' equity	$	162,721			$	156,625

FAQ

What were Silk Road Medical's Q2 2022 earnings results?

Silk Road Medical reported Q2 2022 revenue of $33.2 million, with a net loss of $15.4 million.

What is Silk Road Medical's revenue guidance for 2022?

Silk Road Medical projects revenue between $128 million and $133 million for the full year 2022.

How did Silk Road Medical's gross margin change in Q2 2022?

The gross margin for Q2 2022 was 73%, down from 75% in the same period last year.

What were the significant milestones achieved by Silk Road Medical in Q2 2022?

In Q2 2022, Silk Road Medical expanded its FDA label, initiated the ROADSTER 3 post-approval study, and gained market share through increased TCAR utilization.