Minerva Surgical Reports First Quarter 2022 Financial Results
Minerva Surgical, Inc. (Nasdaq: UTRS) reported $10.9 million in revenue for Q1 2022, a 7.6% decline from Q1 2021. Symphion revenue increased by 20% to $2.7 million. The gross margin dropped to 49.5% from 57.7% year-over-year, attributed to a shift towards lower-margin products. Operating expenses surged to $15.7 million, up from $11.6 million in 2021. The net loss was $10.9 million, an improvement from $14.9 million loss in 2021. Annual revenue guidance remains at $60 million to $63 million.
- Symphion revenue increased by 20% to $2.7 million.
- 238 new accounts added in the past year.
- Revenue decreased by 7.6% year-over-year.
- Gross margin declined to 49.5% from 57.7%.
- Operating expenses increased by $4.1 million compared to Q1 2021.
SANTA CLARA, Calif., May 11, 2022 (GLOBE NEWSWIRE) -- Minerva Surgical, Inc. (Nasdaq: UTRS) (Minerva Surgical or the Company), a woman's health company focused on the treatment of Abnormal Uterine Bleeding (AUB), today reported first quarter financial results for the period ended March 31, 2022.
First Quarter and Business Highlights:
- Reported revenue of
$10.9 million in the first quarter of 2022, compared with revenue of$11.8 million in the first quarter of 2021. - Symphion revenues of
$2.7 million were up20% from Q1 2021. - DTC (direct-to-consumer) digital marketing campaign launched in 10 markets.
- Website visitors for AUBandMe.com up from 650 visitors in January to over 14,000 new visitors in April.
- 238 new accounts added in the past 12 months focusing on both new Minerva and Symphion products.
"In March we held our first in-person national sales meeting in two years, and despite the rather slow start to sales experienced in January and February, our team is now seeing our sales trending up, especially with Symphion,” said David M. Clapper, Minerva Surgical’s Chief Executive Officer. “We’re encouraged with the number of Symphion evaluations currently in process at both existing Minerva accounts and new hospitals. We look forward to continuing to grow the business as patients feel more comfortable returning to the hospital setting to seek treatment for their abnormal uterine bleeding.”
First Quarter 2022 Financial Results
Revenue was
Overall gross margin was
Operating expenses were
Net loss in the first quarter 2022 was
Adjusted EBITDA for the first quarter of 2022 was negative
Financial Outlook for Fiscal Year 2022
Annual revenue guidance is unchanged from previous levels of
Webcast and Conference Call Information
Minerva Surgical will host a conference call to discuss the first quarter 2022 financial results after market close on Wednesday, May 11, 2022 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live over the phone (877) 804-7316 for U.S. callers or (629) 228-0696 for international callers, using conference ID: 5665795. The live webinar can be accessed at https://ir.minervasurgical.com.
Use of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
To provide investors with additional information regarding the Company’s financial results, it has provided EBITDA and adjusted EBITDA. The Company calculates EBITDA, a non-GAAP financial measure, as net income/(loss) excluding depreciation and amortization, interest expense and income tax benefit. The Company calculates adjusted EBITDA, a non-GAAP financial measure by further excluding non-cash items for stock-based compensation expenses, change in fair value of redeemable convertible preferred stock warrant liability, change in fair value of contingent consideration liability and change in fair value of derivative liabilities. EBITDA margin represents EBITDA as a percentage of revenue. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue. EBITDA and Adjusted EBITDA should be viewed as measures of operating performance that are supplements to, and not substitutes for, operating (income) loss, net (income) loss and other U.S. GAAP measures of income and loss.
The Company has included adjusted EBITDA in this earnings release because it is a key measure used by the Company’s management and board of directors to evaluate and compare the Company’s financial and operational performance over multiple periods, identifying trends affecting the Company’s business, formulating business plans and making strategic decisions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain non-recurring variable charges. In addition, the Company believes that providing each of EBITDA and Adjusted EBITDA, together with a reconciliation of net loss to each such measure, helps investors make comparisons between Minerva Surgical and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.
Each of EBITDA and Adjusted EBITDA is used by the Company’s management team as an additional measure of Company performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of EBITDA and Adjusted EBITDA help the Company’s management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations. Each of EBITDA and Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements may include information regarding trends and expectations for the Company’s products and technology, demand for the Company’s products, the Company’s expected financial performance, expenses, and position in the market and outlook for fiscal year 2022, and the impact of COVID-19 and its variants on the Company’s operations and those of its customers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2022, which was filed with the U.S. Securities and Exchange Commission (SEC) on May 11, 2022, and available at www.SEC.gov. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical fact are forward-looking statements. Except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in the Company’s business.
About Minerva Surgical, Inc.
Minerva Surgical is a commercial-stage medical technology company focused on developing, manufacturing, and commercializing minimally invasive solutions to meet the distinct uterine healthcare needs of women. The Company has established a broad product line of commercially available, minimally invasive alternatives to hysterectomy, which are designed to address the most common causes of Abnormal Uterine Bleeding (AUB) in most uterine anatomies. The Minerva Surgical solutions can be used in a variety of medical treatment settings and aim to address the drawbacks associated with alternative treatment methods and to preserve the uterus by avoiding unnecessary hysterectomies.
Contact:
Media/Press: Mike Clapper– mike.clapper@minervasurgical.com
Investors: Caroline Corner- caroline.corner@westwicke.com
www.minervasurgical.com
www.AUBandMe.com
Minerva Surgical, Inc.
Statements of Operations
(unaudited, in thousands)
Three Months Ended March 31 | |||||||||
2022 | 2021 | ||||||||
Revenues | $ | 10,935 | $ | 11,838 | |||||
Cost of goods sold | 5,522 | 5,005 | |||||||
Gross profit | 5,413 | 6,833 | |||||||
Operating expenses | |||||||||
Sales and marketing | 9,473 | 6,469 | |||||||
General and administrative | 4,985 | 4,003 | |||||||
Research and development | 1,255 | 1,151 | |||||||
Total operating expenses | 15,713 | 11,623 | |||||||
Loss from operations | (10,300 | ) | (4,790 | ) | |||||
Interest income | 9 | 1 | |||||||
Interest expense (includes $nil million and | (632 | ) | (3,451 | ) | |||||
Change in fair value of derivative liabilities | — | (6,121 | ) | ||||||
Other income (expense), net | (2 | ) | (587 | ) | |||||
Net loss before income taxes | (10,925 | ) | (14,948 | ) | |||||
Income tax benefit (expense) | — | — | |||||||
Net loss | $ | (10,925 | ) | $ | (14,948 | ) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.38 | ) | $ | (12.77 | ) | |||
Weighted-average common shares used in computing net loss per share, basic and diluted | 28,480,745 | 1,170,458 |
Minerva Surgical, Inc.
Balance Sheets
(unaudited, in thousands, except share and per share amounts)
March 31, 2022 | December 31, 2021 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 27,904 | $ | 40,608 | ||||||
Restricted cash, current | 7,283 | 7,283 | ||||||||
Accounts receivable, net | 7,150 | 7,292 | ||||||||
Inventory | 16,004 | 15,682 | ||||||||
Prepaid expenses and other current assets | 3,142 | 4,139 | ||||||||
Total current assets | 61,483 | 75,004 | ||||||||
Restricted cash, net of current portion | 524 | 524 | ||||||||
Intangible assets, net | 32,938 | 34,970 | ||||||||
Property and equipment, net | 4,817 | 4,594 | ||||||||
Operating lease right-of-use asset | 741 | — | ||||||||
Total assets | $ | 100,503 | $ | 115,092 | ||||||
Liabilities and stockholders’ equity | ||||||||||
Current Liabilities: | ||||||||||
Accounts payable | $ | 3,061 | $ | 3,629 | ||||||
Accrued compensation | 2,887 | 3,518 | ||||||||
Accrued liabilities | 10,748 | 10,662 | ||||||||
Contingent consideration liability, current | 8,943 | 5,000 | ||||||||
Operating lease liability | 831 | — | ||||||||
Total current liabilities | 26,470 | 22,809 | ||||||||
Long-term debt | 39,146 | 39,085 | ||||||||
Operating lease liability, net of current portion | 143 | — | ||||||||
Contingent consideration liability, net of current portion | — | 9,094 | ||||||||
Total liabilities | 65,759 | 70,988 | ||||||||
Stockholders` equity: | ||||||||||
Preferred stock, | — | — | ||||||||
Common stock, | 28 | 28 | ||||||||
Additional paid-in capital | 295,186 | 293,621 | ||||||||
Accumulated other comprehensive income | 11 | 11 | ||||||||
Accumulated deficit | (260,481 | ) | (249,556 | ) | ||||||
Total stockholders’ equity | 34,744 | 44,104 | ||||||||
Total liabilities and stockholders’ equity | $ | 100,503 | $ | 115,092 |
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin: The following table presents reconciliation of net income (loss) to adjusted EBITDA for each of the periods indicated.
Three Months Ended March 31 | |||||||||
(in thousands, except percentage figures) | 2022 | 2021 | |||||||
Net Loss | $ | (10,925 | ) | $ | (14,948 | ) | |||
Depreciation and amortization | 2,668 | 2,643 | |||||||
Interest (income) expense, net | 623 | 3,450 | |||||||
EBITDA | $ | (7,634 | ) | $ | (8,855 | ) | |||
EBITDA margin | (69.8 | %) | (74.8 | %) | |||||
Adjustments: | |||||||||
Stock-based compensation expense | 1,523 | 131 | |||||||
Change in fair value of redeemable convertible preferred stock warrant liability | — | 582 | |||||||
Change in fair value of contingent consideration liability | (151 | ) | (204 | ) | |||||
Change in fair value of derivative liabilities | — | 6,121 | |||||||
Adjusted EBITDA | $ | (6,262 | ) | $ | (2,225 | ) | |||
Adjusted EBITDA margin | (57.3 | %) | (18.8 | %) |
FAQ
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