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Shockwave Medical Reports Second Quarter 2022 Financial Results

·8-min read
Shockwave Medical, Inc.
Shockwave Medical, Inc.

SANTA CLARA, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Shockwave Medical, Inc. (Nasdaq: SWAV), a pioneer in the development and commercialization of Intravascular Lithotripsy (IVL) to treat complex calcified cardiovascular disease, today reported financial results for the three months ended June 30, 2022.

Recent Highlights

  • Recognized revenue of $120.7 million for the second quarter of 2022, representing an increase of 116% from the same period in 2021

  • Shared two-year data from the Disrupt PAD III trial, which found that Shockwave IVL maintains superiority to angioplasty in calcified peripheral disease and preserves future treatment options

  • Received regulatory approval in China to market and sell the Shockwave IVL System with the Shockwave C2 Coronary IVL Catheters and the Shockwave M5 and S4 Peripheral IVL

“Our results in the second quarter were encouraging once again and demonstrated the strength throughout the entire Shockwave organization. Our teams continue to deliver due to their ability to work effectively together and with our customers to overcome the obstacles that continue to be put in front of us,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “The progress of our business across categories and geographies demonstrates the global impact of IVL as a safe, effective technology to address calcified arterial disease and we look forward to continuing to improve outcomes for patients across the globe.”

Second Quarter 2022 Financial Results

Revenue for the second quarter ended June 30, 2022, was $120.7 million, a 116% increase from $55.9 million in the same period of 2021. The growth was primarily driven by the launch of the coronary product, Shockwave C2, in the U.S. in February 2021, continued recovery from the pandemic impact and increased adoption of Shockwave products.

Gross profit for the second quarter of 2022 was $104.0 million compared to $46.0 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 86%, as compared to 82% in the second quarter of 2021. The increase in gross margin was primarily driven by product mix along with continued improvement in manufacturing productivity and process efficiencies.

Total operating expenses for the second quarter of 2022 were $74.4 million, a 61% increase from $46.2 million in the second quarter of 2021. The increase was primarily driven by sales force expansion in the U.S. and higher headcount to support the growth of the business.

Net income for the second quarter of 2022 was $25.6 million, compared to a net loss of $0.4 million in the same period of 2021. Basic and diluted net income per share for the second quarter of 2022 was $0.71 and $0.68, respectively.

Cash, cash equivalents and short-term investments totaled $224.9 million as of June 30, 2022.

2022 Financial Guidance

Shockwave Medical projects revenue for the full year 2022 to range from $465 million to $475 million, which represents 96% to 100% growth over the Company’s prior year revenue. This compares to previous revenue guidance of $435 million to $455 million.

Conference Call

Shockwave Medical will host a conference call at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time on Monday, August 8, 2022, to discuss its second quarter 2022 financial results. To access the earnings call via telephone, please register in advance using the link here. Upon registering, each participant will receive an email confirmation with dial-in numbers and a unique personal PIN that can be used to join the call. A live and archived webcast of the event will be available at https://ir.shockwavemedical.com/.

About Shockwave Medical, Inc.

Shockwave Medical is focused on developing and commercializing products intended to transform the way calcified cardiovascular disease is treated. Shockwave Medical aims to establish a new standard of care for the interventional treatment of atherosclerotic cardiovascular disease through differentiated and proprietary local delivery of sonic pressure waves for the treatment of calcified plaque, which Shockwave Medical refers to as Intravascular Lithotripsy (IVL). IVL is a minimally invasive, easy-to-use and safe way to significantly improve patient outcomes. To view an animation of the IVL procedure and for more information, visit 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. 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 the COVID-19 pandemic on our operations, financial results, and liquidity and capital resources, including the impact on our sales, expenses, supply chain, manufacturing, research and development activities, clinical trials, and employees; our ability to develop, manufacture, obtain and maintain regulatory approvals for, 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; 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 Part I, Item IA - Risk Factors in our most recent Annual Report on Form 10-K filed with the SEC, and in our other periodic and 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.

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)

 

 

 

 

 

 

 

June 30,
2022

 

December 31,
2021

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Cash and cash equivalents

 

$

99,913

 

 

$

89,209

 

Short-term investments

 

124,993

 

 

111,772

 

Accounts receivable, net

 

59,797

 

 

37,435

 

Inventory

 

60,028

 

 

42,978

 

Prepaid expenses and other current assets

 

7,275

 

 

4,508

 

Total current assets

 

352,006

 

 

285,902

 

Operating lease right-of-use assets

 

26,045

 

 

27,496

 

Property and equipment, net

 

32,253

 

 

24,361

 

Equity method investment

 

4,476

 

 

5,987

 

Other assets

 

2,365

 

 

1,936

 

TOTAL ASSETS

 

$

417,145

 

 

$

345,682

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

 

$

5,266

 

 

$

3,520

 

Term notes, current portion

 

11,000

 

 

5,500

 

Accrued liabilities

 

47,253

 

 

40,870

 

Lease liability, current portion

 

2,688

 

 

1,738

 

Total current liabilities

 

66,207

 

 

51,628

 

Lease liability, noncurrent

 

27,157

 

 

28,321

 

Term notes, noncurrent portion

 

6,440

 

 

11,630

 

Related party contract liability, noncurrent portion

 

12,273

 

 

12,273

 

TOTAL LIABILITIES

 

112,077

 

 

103,852

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

Preferred stock

 

 

 

 

Common stock

 

36

 

 

35

 

Additional paid-in capital

 

519,096

 

 

494,806

 

Accumulated other comprehensive loss

 

(1,337)

 

 

(202)

 

Accumulated deficit

 

(212,727)

 

 

(252,809)

 

TOTAL STOCKHOLDERS’ EQUITY

 

305,068

 

 

241,830

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

417,145

 

 

$

345,682

 


SHOCKWAVE MEDICAL, INC.

Statement 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:

 

 

 

 

 

 

 

 

Product revenue

 

$

120,746

 

 

$

55,908

 

 

$

214,377

 

 

$

87,808

 

Cost of revenue:

 

 

 

 

 

 

 

 

Cost of product revenue

 

16,730

 

 

9,934

 

 

29,620

 

 

17,826

 

Gross profit

 

104,016

 

 

45,974

 

 

184,757

 

 

69,982

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

20,760

 

 

11,815

 

 

37,779

 

 

22,092

 

Sales and marketing

 

40,515

 

 

25,713

 

 

76,476

 

 

49,705

 

General and administrative

 

13,165

 

 

8,626

 

 

25,554

 

 

15,852

 

Total operating expenses

 

74,440

 

 

46,154

 

 

139,809

 

 

87,649

 

Income (Loss) from operations

 

29,576

 

 

(180)

 

 

44,948

 

 

(17,667)

 

Loss from equity method investment

 

(1,464)

 

 

 

 

(1,511)

 

 

(5,523)

 

Interest expense

 

(304)

 

 

(318)

 

 

(601)

 

 

(630)

 

Other income (expense), net

 

(1,473)

 

 

146

 

 

(1,783)

 

 

(89)

 

Net income (loss) before taxes

 

26,335

 

 

(352)

 

 

41,053

 

 

(23,909)

 

Income tax provision

 

774

 

 

73

 

 

971

 

 

117

 

Net income (loss)

 

$

25,561

 

 

$

(425)

 

 

$

40,082

 

 

$

(24,026)

 

Net income (loss) per share, basic

 

$

0.71

 

 

$

(0.01)

 

 

$

1.12

 

 

$

(0.69)

 

Net income (loss) per share, diluted

 

$

0.68

 

 

$

(0.01)

 

 

$

1.06

 

 

$

(0.69)

 

Shares used in computing net income (loss) per share, basic

 

35,825,947

 

 

35,030,036

 

 

35,707,301

 

 

34,914,361

 

Shares used in computing net income (loss) per share, diluted

 

37,690,094

 

 

35,030,036

 

 

37,690,320

 

 

34,914,361