Silk Road Medical Reports Third Quarter 2021 Financial Results

Rhea-AI Summary

Silk Road Medical reported a 23% revenue increase for Q3 2021, totaling $24.7 million, compared to $20.1 million in Q3 2020. Gross profit also rose to $18.6 million with a gross margin of 75%. However, operating expenses surged by 33% to $31.9 million, leading to a net loss of $13.9 million or $0.40 per share. The company now projects full-year revenue between $99 million and $102 million, reflecting an anticipated growth of 32% to 36% despite challenges posed by the COVID-19 delta variant.

Positive

• Revenue increased by 23% to $24.7 million.
• Gross profit rose to $18.6 million with a gross margin of 75%.
• Full-year revenue guidance of $99 million to $102 million indicates 32% to 36% growth.

Negative

• Operating expenses increased by 33% to $31.9 million.
• Net loss of $13.9 million, up from $10.3 million in the previous year.

SUNNYVALE, Calif., Nov. 09, 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 September 30, 2021.

“I am incredibly proud of our team for continuing to drive TCAR adoption forward against the headwinds of the pandemic,” said Erica Rogers, President and Chief Executive Officer of Silk Road Medical. “We are investing confidently in the people and programs that will drive our growth in 2022 and beyond. We remain as committed as ever to establishing TCAR as the new standard of care in carotid artery disease.”

Third Quarter 2021 Financial Results
Revenue for the third quarter of 2021 was $24.7 million, an increase of $4.6 million or 23%, compared to the third quarter of 2020.

Gross profit for the third quarter of 2021 was $18.6 million compared to $14.6 million for the third quarter of 2020. Gross margin for the third quarter of 2021 increased to 75% compared to 73% in the third quarter of 2020. Gross margin in the prior year period included unfavorable production variances as a result of temporarily idled manufacturing operations and lower than anticipated demand due to COVID-19.

Operating expenses were $31.9 million for the third quarter of 2021, compared to $23.9 million in the corresponding prior year period, which represents an increase of 33%. The increase was driven by investment in new and ongoing R&D programs, as well as continued expansion of our sales team and commercial efforts, and general corporate and other costs.

Net loss was $13.9 million in the third quarter of 2021, or a loss of $0.40 per share, as compared to a loss of $10.3 million, or $0.31 per share, in the corresponding period of the prior year.

Cash, cash equivalents, and short-term investments were $122.8 million as of September 30, 2021.

2021 Financial Guidance
Based on unforeseen impacts from the COVID-19 delta variant, Silk Road Medical now projects revenue for the full year 2021 to range from $99 million to $102 million, which represents 32% to 36% growth over the company’s prior year revenue.

Conference Call
Silk Road Medical will host a conference call at 1:30 p.m. PT / 4:30 p.m. ET on Tuesday, November 9, 2021 to discuss its third quarter 2021 financial results. The call may be accessed through an operator by dialing (844) 883-3861 for domestic callers or (574) 990-9820 for international callers, using conference ID: 3998078. 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 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 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 August 6, 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.

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 September 30,								Nine Months Ended September 30,
								2021				2020				2021				2020
Revenue							$	24,701			$	20,067			$	73,210			$	54,093
Cost of goods sold								6,076				5,488				18,213				16,074
					Gross profit			18,625				14,579				54,997				38,019
Operating expenses:
	Research and development							6,867				4,711				19,611				11,232
	Selling, general and administrative							25,049				19,202				68,792				54,652
					Total operating expenses			31,916				23,913				88,403				65,884
					Loss from operations			(13,291	)			(9,334	)			(33,406	)			(27,865	)
Interest income								42				249				183				951
Interest expense								(633	)			(1,215	)			(1,884	)			(3,620	)
Other income (expense), net								(3	)			(15	)			(11	)			(74	)
					Net loss			(13,885	)			(10,315	)			(35,118	)			(30,608	)
Other comprehensive loss:
	Unrealized gain (loss) on investments, net							(2	)			(164	)			(38	)			150
Net change in other comprehensive loss								(2	)			(164	)			(38	)			150
Net loss and comprehensive loss							$	(13,887	)		$	(10,479	)		$	(35,156	)		$	(30,458	)
Net loss per share, basic and diluted							$	(0.40	)		$	(0.31	)		$	(1.02	)		$	(0.94	)
Weighted average common shares used to compute net loss per share, basic and diluted								34,736,015				33,757,599				34,536,980				32,597,007

SILK ROAD MEDICAL, INC. Balance Sheets Data (Unaudited, in thousands)
							September 30, 2021				December 31, 2020
Assets
Current assets
	Cash and cash equivalents						$	105,642			$	69,466
	Short-term investments							17,127				78,016
	Accounts receivable, net							10,976				9,070
	Inventories							16,049				9,989
	Prepaid expenses and other current assets							4,662				6,787
					Total current assets			154,456				173,328
	Property and equipment, net							5,132				2,844
	Restricted cash							232				310
	Other non-current assets							5,711				2,832
					Total assets		$	165,531			$	179,314
Liabilities and stockholders' equity
Current liabilities
	Accounts payable						$	4,908			$	2,598
	Accrued liabilities							16,011				16,957
					Total current liabilities			20,919				19,555
	Long-term debt							48,652				48,533
	Other liabilities							7,781				3,726
					Total liabilities			77,352				71,814
Stockholders' equity
	Preferred stock, $0.001 par value							-				-
	Common stock, $0.001 par value							35				34
Additional paid-in capital								362,152				346,318
Accumulated other comprehensive income								1				39
Accumulated deficit								(274,009	)			(238,891	)
					Total stockholders' equity			88,179				107,500
					Total liabilities and stockholders' equity		$	165,531			$	179,314

FAQ

What were Silk Road Medical's Q3 2021 earnings results?

Silk Road Medical reported Q3 2021 revenue of $24.7 million, a 23% increase year-over-year, and a net loss of $13.9 million.

What is Silk Road Medical's revenue guidance for 2021?

Silk Road Medical projects full-year revenue to range from $99 million to $102 million, reflecting growth of 32% to 36%.

What were the main drivers of Silk Road Medical's increased operating expenses in Q3 2021?

Increased operating expenses were driven by investments in R&D, expansion of the sales team, and general corporate costs.

How did the COVID-19 delta variant affect Silk Road Medical's performance?

The company experienced unforeseen impacts from the delta variant, which influenced its revenue outlook for 2021.