TransMedics Reports Second Quarter 2023 Financial Results
Recent Highlights
- Net revenue of
in the second quarter of 2023, a$52.5 million 156% increase compared to the second quarter of 2022. - Transplant centers' use of the National OCS Program (NOP) drove approximately
93% of totalU.S. OCS cases. - Signed definitive agreement to acquire Summit Aviation.
- Acquired assets and IP related to the Ex-Vivo Organ Support System ("EVOSS") and LifeCradle Heart Preservation Transport System technologies from Bridge to Life.
- Completed convertible senior notes offering for approximately
in net proceeds.$393 million - Results of OCS DCD Heart Trial published in New England Journal of Medicine.
- Received CE mark for OCS Liver combined with bile salt as a Class III medical technology according to MDR, enabling commercial sales of OCS Liver in
Europe . - Appointed Anil Ranganath as Senior Vice President, General Counsel and Corporate Secretary.
"Our second quarter results once again demonstrated the growth trajectory of our business," said Waleed Hassanein, MD, President and Chief Executive Officer. "We believe that we remain in the early innings and are looking forward to continuing to expand our infrastructure to fully capitalize on our unique NOP market opportunity. Additionally, we are investing to expand our product and service offering, as well as our clinical indications."
Second Quarter 2023 Financial Results
Total revenue for the second quarter of 2023 was
Gross margin for the second quarter of 2023 was
Operating expenses for the second quarter of 2023 were
Net loss for the second quarter of 2023 was
Cash was
2023 Financial Outlook
TransMedics is updating its full year 2023 revenue guidance to be in the range of
Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Thursday, August 3, 2023. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, our full-year guidance, and statements about our operations, financial position, and business plans, including our plans to integrate newly acquired logistical and transport capabilities to enhance the NOP and integrate the EVOSS and LifeCradle technologies into our OCS offering. These forward-looking statements are subject to a number of risks and uncertainties. Our Management cannot predict all risks, nor can we assess the impact of all factors on the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: that we continue to incur losses; our ability to attract and retain key personnel; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement to which we will remain subject until maturity; the fluctuation of our financial results from quarter to quarter; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; our dependence on the success of the OCS; our ability to expand access to OCS through the NOP; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private payors of benefits offered by the OCS; our ability to improve the OCS platform and develop the next generation of the OCS products; our dependence on a limited number of customers for a significant portion of our net revenue; our ability to maintain regulatory approvals or clearances for our OCS products in
Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com
TransMedics Group, Inc. | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenue: | ||||||||
Net product revenue | $ 42,462 | $ 17,922 | $ 76,455 | $ 32,861 | ||||
Service revenue | 10,003 | 2,599 | 17,564 | 3,540 | ||||
Total revenue | 52,465 | 20,521 | 94,019 | 36,401 | ||||
Cost of revenue: | ||||||||
Cost of net product revenue | 8,558 | 4,080 | 15,864 | 7,458 | ||||
Cost of service revenue | 7,166 | 2,091 | 12,648 | 2,489 | ||||
Total cost of revenue | 15,724 | 6,171 | 28,512 | 9,947 | ||||
Gross profit | 36,741 | 14,350 | 65,507 | 26,454 | ||||
Gross Margin | 70 % | 70 % | 70 % | 73 % | ||||
Operating expenses: | ||||||||
Research, development and clinical trials | 8,291 | 6,714 | 14,162 | 14,248 | ||||
Selling, general and administrative | 29,356 | 17,381 | 54,340 | 31,320 | ||||
Total operating expenses | 37,647 | 24,095 | 68,502 | 45,568 | ||||
Loss from operations | (906) | (9,745) | (2,995) | (19,114) | ||||
Other income (expense): | ||||||||
Interest expense | (2,505) | (972) | (3,596) | (1,932) | ||||
Other income (expense), net | 2,431 | (784) | 2,986 | (1,011) | ||||
Total other expense, net | (74) | (1,756) | (610) | (2,943) | ||||
Loss before income taxes | (980) | (11,501) | (3,605) | (22,057) | ||||
Provision for income taxes | (21) | (22) | (32) | (28) | ||||
Net loss | $ (1,001) | $ (11,523) | $ (3,637) | $ (22,085) | ||||
Net loss per share attributable to common | $ (0.03) | $ (0.41) | $ (0.11) | $ (0.79) | ||||
Weighted average common shares outstanding, | 32,545,352 | 27,983,629 | 32,403,597 | 27,967,072 |
TransMedics Group, Inc. | ||||
June 30, 2023 | December 31, 2022 | |||
Assets | ||||
Current assets: | ||||
Cash | $ 582,210 | $ 201,182 | ||
Accounts receivable | 47,524 | 27,611 | ||
Inventory | 30,545 | 20,605 | ||
Prepaid expenses and other current assets | 2,376 | 2,896 | ||
Total current assets | 662,655 | 252,294 | ||
Property and equipment, net | 19,965 | 19,223 | ||
Restricted cash | 750 | 500 | ||
Operating lease right-of-use assets | 6,929 | 5,130 | ||
Other non-current assets | 59 | — | ||
Total assets | $ 690,358 | $ 277,147 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $ 7,031 | $ 3,341 | ||
Accrued expenses and other current liabilities | 22,862 | 18,635 | ||
Deferred revenue | 244 | 241 | ||
Operating lease liabilities | 1,880 | 1,444 | ||
Total current liabilities | 32,017 | 23,661 | ||
Convertible senior notes, net | 445,761 | — | ||
Long-term debt, net | 58,908 | 58,696 | ||
Operating lease liabilities, net of current portion | 8,459 | 7,415 | ||
Total liabilities | 545,145 | 89,772 | ||
Total stockholders' equity | 145,213 | 187,375 | ||
Total liabilities and stockholders' equity | $ 690,358 | $ 277,147 |
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SOURCE TransMedics Group, Inc.