Shockwave Medical Reports Fourth Quarter and Full Year 2023 Financial Results
- Revenue for Q4 2023 was $203.0 million, a 41% increase from the same period in 2022.
- Full year 2023 revenue was $730.2 million, marking a 49% growth compared to 2022.
- Shockwave achieved a gross profit of $177.7 million for Q4 2023, with an 88% gross margin.
- The company's net income for Q4 2023 was $44.3 million, with basic net income per share at $1.20.
- Adjusted EBITDA for Q4 2023 was $68.2 million, a 20% increase from Q4 2022.
- For full year 2023, Shockwave's revenue was $730.2 million, a 49% increase from 2022.
- The company's net income for the full year 2023 was $147.3 million, with basic net income per share at $4.01.
- Adjusted EBITDA for full year 2023 was $242.7 million, a 40% increase from 2022.
- Shockwave projects revenue growth of 25% to 27% for the full year 2024, aiming for $910 million to $930 million.
- None.
Insights
The robust revenue growth of Shockwave Medical, Inc. reflects a significant market demand for their cardiovascular treatment technologies. The company's strategic positioning in the medical device sector has allowed it to capitalize on the need for advanced solutions in cardiovascular care, which is a high-growth area due to the aging population and the global rise in heart disease prevalence.
The introduction of new reimbursement codes for the Shockwave C2+ Coronary Intravascular Lithotripsy catheter is particularly noteworthy. This development not only incentivizes physicians to adopt this technology but also eases the financial burden on hospitals, potentially accelerating market penetration and usage rates. The creation of MS-DRGs specific to coronary IVL is a strategic win that could lead to increased procedural volumes and further revenue growth.
Looking ahead, the projected 25% to 27% revenue growth for 2024 suggests continued confidence in the company's expansion and product adoption. However, investors should monitor operating expenses closely, as the 60% increase year-over-year could impact profit margins if not accompanied by sustained revenue growth rates.
Analyzing the financial health of Shockwave Medical, the consistent gross margin of 87% to 88% is a strong indicator of cost-effective production and pricing power. However, the 60% increase in operating expenses is a concern that warrants attention. While this is attributed to business growth and the Neovasc acquisition, it is essential to evaluate the efficiency of these investments and their long-term return.
The dip in net income compared to the previous year can be largely attributed to the one-time tax benefit in 2022. When adjusted for this factor, the underlying profitability appears more stable. The non-GAAP measure of Adjusted EBITDA, showing a 40% increase year-over-year, provides a clearer picture of operational performance by excluding non-cash expenses and certain variable items.
Finally, the substantial cash reserves of nearly $1 billion offer a safety net for future investments and buffer against market volatility. This financial cushion could be pivotal in funding R&D or pursuing strategic acquisitions to maintain competitive advantage.
The economic implications of new reimbursement strategies for medical devices like the Shockwave C2+ Coronary Intravascular Lithotripsy catheter are significant. Reimbursement codes play a crucial role in healthcare economics, influencing the adoption of new technologies. By securing new reimbursement pathways, Shockwave Medical has not only improved the accessibility of their technology but also potentially impacted the overall cost dynamics within the cardiovascular treatment landscape.
The increase in MS-DRGs specific to coronary IVL may lead to more predictable and favorable hospital payment structures, which is an important factor in healthcare budgeting and economics. This could result in a shift in how cardiovascular diseases are managed financially within healthcare systems, potentially leading to cost savings through reduced complications and shorter hospital stays associated with minimally invasive procedures.
It's also important to consider the broader economic impact of such innovations. Improved patient outcomes can translate into reduced long-term healthcare costs and increased productivity by decreasing the time patients spend away from work, thus contributing positively to the economy.
SANTA CLARA, Calif., Feb. 15, 2024 (GLOBE NEWSWIRE) -- Shockwave Medical, Inc. (Nasdaq: SWAV), a pioneer in the development and commercialization of transformational technologies for the treatment of cardiovascular disease, today reported financial results for the three months and full year ended December 31, 2023.
Recent Highlights
- Recognized revenue of
$203.0 million for the fourth quarter of 2023 and$730.2 million for the full year 2023, representing increases of41% and49% , respectively, from the same periods in 2022 - Initiated the full U.S. commercial launch of the Shockwave C2+ Coronary Intravascular Lithotripsy (IVL) catheter
- Granted new physician and hospital reimbursement for coronary IVL in the United States. Three newly created MS-DRGs specific to coronary IVL for hospital payment in the inpatient setting became effective October 1, 2023. A new Category I CPT add-on code that provides physicians with remuneration for the additional work associated with performing coronary IVL became effective January 1, 2024
“The team ended 2023 with solid performances across our business and geographies,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “Our record revenue is a testament to the continued clinical need for our innovative products and our ability to grow the Shockwave organization to meet those needs as we pursue our mission to improve outcomes for patients suffering from cardiovascular disease.”
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter of 2023 was
Gross profit for the fourth quarter of 2023 was
Operating expenses for the fourth quarter of 2023 were
Net income was
Adjusted EBITDA was
Full Year 2023 Financial Results
Revenue for the full year 2023 was
Gross profit for the full year 2023 was
Operating expenses were
Net income was
Adjusted EBITDA was
Cash, cash equivalents and short-term investments totaled
2024 Financial Guidance
Shockwave Medical projects revenue for the full year 2024 to range from
Conference Call
Shockwave Medical will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time on Thursday, February 15, 2024, to discuss its fourth quarter and full year 2023 financial results. The call may be accessed by dialing 877-704-4453 for domestic callers or 201-389-0920 for international callers, using conference ID: 13742096. A live and archived webcast of the event will be available at https://ir.shockwavemedical.com/.
About Shockwave Medical, Inc.
Shockwave Medical is a leader in the development and commercialization of innovative products that are transforming the treatment of cardiovascular disease. Its first-of-its-kind Intravascular Lithotripsy (IVL) technology has transformed the treatment of atherosclerotic cardiovascular disease by safely using sonic pressure waves to disrupt challenging calcified plaque, resulting in significantly improved patient outcomes. Shockwave Medical has also recently acquired the Reducer, which is under clinical investigation in the United States and is CE Marked in the European Union and the United Kingdom. By redistributing blood flow within the heart, the Reducer is designed to provide relief to the millions of patients worldwide suffering from refractory angina. Learn more at www.shockwavemedical.com.
Forward-Looking Statements
This press release contains statements relating to our expectations, projections, beliefs, and prospects, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” and similar expressions, and the negative of these terms. Forward-looking statements in this press release include, but are not limited to, statements regarding our anticipated future operating results and financial position, including for the full year ending December 31, 2024, our business strategy and plans, our objectives for future operations and financial performance and other matters. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware.
Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others: the impact of global business, political, and macroeconomic conditions, including inflation, rising interest rates, uncertainty with respect to the federal budget and the related potential for government shutdowns, instability in the global banking system, volatile market conditions, supply chain disruptions, cybersecurity events and global events, including regional conflicts around the world, on our operations, financial results, liquidity, capital resources, expenses, supply chain, manufacturing, research and development activities, clinical trials, and employees; our ability to successfully execute our business and growth strategies; our ability to develop, manufacture, obtain and maintain regulatory approvals for, and market and sell, our products; our expected future growth, including the size and growth potential of the markets for our products; our ability to obtain coverage and reimbursement for procedures performed using our products; our ability to scale our organizational culture; the impact of the development, regulatory approval, efficacy and commercialization of competing products; the loss of key scientific or management personnel; our ability to develop and maintain our corporate infrastructure, including our internal controls; our financial performance and capital requirements; the success of any acquisitions that we make; and our ability to obtain and maintain intellectual property protection for our products, as well as our ability to operate our business without infringing the intellectual property rights of others. These factors, as well as others, are discussed in our filings with the Securities and Exchange Commission (SEC), including in the sections titled “Risk Factors” in our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, and in our other reports filed with the SEC. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date hereof to conform these statements to actual results or revised expectations.
Use of Non-GAAP Financial Measures
This press release contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP), including references to adjusted EBITDA, a non-GAAP financial measure that excludes from net income the effects of income tax (benefit) provision, other income, interest expense, loss from equity method investment, depreciation and amortization, and stock-based compensation expense. We believe the presentation of adjusted EBITDA is useful as it provides visibility to our underlying continuing operating performance by excluding the impact of certain items that are non-cash in nature or not related to our core business operations.
Our definition of adjusted EBITDA may differ from similarly titled measures used by others. Adjusted EBITDA should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because adjusted EBITDA excludes the effect of items that increase or decrease our reported results of operations, management strongly encourages investors to review, when they become available, our consolidated financial statements and publicly filed reports in their entirety. A reconciliation of adjusted EBITDA to net income has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
Media Contact:
Scott Shadiow
+1.317.432.9210
sshadiow@shockwavemedical.com
Investor Contact:
Debbie Kaster
dkaster@shockwavemedical.com
| SHOCKWAVE MEDICAL, INC. | |||||||||||
| Balance Sheet Data | |||||||||||
| (in thousands) | |||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 328,422 | $ | 156,586 | |||||||
| Short-term investments | 662,132 | 147,907 | |||||||||
| Accounts receivable, net | 114,552 | 71,366 | |||||||||
| Inventory | 107,587 | 75,112 | |||||||||
| Prepaid expenses and other current assets | 12,567 | 8,292 | |||||||||
| Total current assets | 1,225,260 | 459,263 | |||||||||
| Operating lease right-of-use assets | 29,707 | 32,365 | |||||||||
| Property and equipment, net | 68,923 | 48,152 | |||||||||
| Equity method investment | 1,643 | 3,512 | |||||||||
| Intangible assets, net | 92,857 | — | |||||||||
| Goodwill | 39,568 | — | |||||||||
| Deferred tax assets | 99,169 | 97,568 | |||||||||
| Other assets | 9,436 | 5,229 | |||||||||
| TOTAL ASSETS | $ | 1,566,563 | $ | 646,089 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 8,868 | $ | 6,721 | |||||||
| Accrued liabilities | 91,696 | 55,375 | |||||||||
| Lease liability, current portion | 3,641 | 1,278 | |||||||||
| Total current liabilities | 104,205 | 63,374 | |||||||||
| Lease liability, noncurrent portion | 35,103 | 34,928 | |||||||||
| Convertible debt, noncurrent portion | 731,863 | — | |||||||||
| Debt, noncurrent portion | — | 24,198 | |||||||||
| Related party contract liability, noncurrent portion | 12,273 | 12,273 | |||||||||
| Deferred tax liabilities | 3,609 | — | |||||||||
| Long-term income tax liability | 1,526 | — | |||||||||
| Other liabilities | 9,307 | — | |||||||||
| TOTAL LIABILITIES | 897,886 | 134,773 | |||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 37 | 36 | |||||||||
| Additional paid-in capital | 557,882 | 548,960 | |||||||||
| Accumulated other comprehensive income (loss) | 293 | (867 | ) | ||||||||
| Retained earnings (accumulated deficit) | 110,465 | (36,813 | ) | ||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 668,677 | 511,316 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,566,563 | $ | 646,089 | |||||||
| SHOCKWAVE MEDICAL, INC. | ||||||||||||||||
| Statement of Operations Data | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 202,979 | $ | 144,026 | $ | 730,230 | $ | 489,733 | ||||||||
| Cost of revenue: | ||||||||||||||||
| Cost of product revenue | 25,316 | 17,502 | 95,388 | 64,996 | ||||||||||||
| Gross profit | 177,663 | 126,524 | 634,842 | 424,737 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 42,321 | 23,723 | 145,647 | 81,679 | ||||||||||||
| Sales and marketing | 67,181 | 43,437 | 234,837 | 161,995 | ||||||||||||
| General and administrative | 24,879 | 16,941 | 95,265 | 56,929 | ||||||||||||
| Total operating expenses | 134,381 | 84,101 | 475,749 | 300,603 | ||||||||||||
| Income from operations | 43,282 | 42,423 | 159,093 | 124,134 | ||||||||||||
| Loss from equity method investment | (167 | ) | (1,061 | ) | (1,869 | ) | (2,475 | ) | ||||||||
| Interest expense | (2,950 | ) | (969 | ) | (6,905 | ) | (1,886 | ) | ||||||||
| Other income, net | 15,295 | 4,261 | 23,962 | 1,055 | ||||||||||||
| Net income before taxes | 55,460 | 44,654 | 174,281 | 120,828 | ||||||||||||
| Income tax (benefit) provision | 11,155 | (96,257 | ) | 27,003 | (95,168 | ) | ||||||||||
| Net income | $ | 44,305 | $ | 140,911 | $ | 147,278 | $ | 215,996 | ||||||||
| Net income per share, basic | $ | 1.20 | $ | 3.89 | $ | 4.01 | $ | 6.02 | ||||||||
| Net income per share, diluted | $ | 1.16 | $ | 3.71 | $ | 3.85 | $ | 5.70 | ||||||||
| Shares used in computing net income per share, basic | 36,930,055 | 36,178,112 | 36,706,060 | 35,900,738 | ||||||||||||
| Shares used in computing net income per share, diluted | 38,158,637 | 37,994,698 | 38,206,269 | 37,881,590 | ||||||||||||
| SHOCKWAVE MEDICAL, INC. |
| Reconciliation of GAAP Net Income to Adjusted EBITDA |
| (Unaudited) |
| (in thousands) |
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| GAAP Net Income | $ | 44,305 | $ | 140,911 | $ | 147,278 | $ | 215,996 | ||||||||
| Non-GAAP Adjustments | ||||||||||||||||
| Income tax (benefit) provision | 11,155 | (96,257 | ) | 27,003 | (95,168 | ) | ||||||||||
| Other income | (15,295 | ) | (4,261 | ) | (23,962 | ) | (1,055 | ) | ||||||||
| Interest expense | 2,950 | 969 | 6,905 | 1,886 | ||||||||||||
| Loss from equity method investment | 167 | 1,061 | 1,869 | 2,475 | ||||||||||||
| Depreciation and amortization | 3,075 | 1,538 | 10,358 | 4,856 | ||||||||||||
| Stock-based compensation expense | 21,811 | 12,643 | 73,234 | 44,890 | ||||||||||||
| Adjusted EBITDA | $ | 68,168 | $ | 56,604 | $ | 242,685 | $ | 173,880 | ||||||||
FAQ
What was Shockwave Medical's (SWAV) revenue for Q4 2023?
How much was Shockwave Medical's (SWAV) full year 2023 revenue?
What was the net income for Shockwave Medical (SWAV) in Q4 2023?
What is Shockwave Medical's (SWAV) projected revenue growth for 2024?
