News Release
TransMedics Reports Third Quarter 2019 Financial Results
Recent Highlights
- Net revenue of
$7.2 million in the third quarter of 2019, representing 78% growth compared to the third quarter of 2018 - Gross margin of 59% in the third quarter of 2019
- Completed enrollment in 300 patient PROTECT OCS Liver pivotal trial
“We are pleased with our third quarter results which showed revenue growth in all three of our OCS programs and demonstrates the strength of our multi-organ platform strategy,” said
Third Quarter 2019 Financial Results
Net revenue for the third quarter of 2019 was
Gross margin for the third quarter of 2019 was 59% as compared to 53% in the third quarter of 2018. The improvement in gross margin was driven by increased sales volumes, a higher average selling price of OCS disposables sets, and improved efficiency in production.
Operating expenses for the third quarter of 2019 were
Net loss for the third quarter of 2019 was
Cash, cash equivalents and marketable securities were
2019 Financial Outlook
Webcast and Conference Call Details
The
About
Forward-Looking Statements
This press release contains forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about our results of operations, commercial opportunity and the rate of adoption and benefits of the OCS. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statement. Applicable risks and uncertainties include those related to our anticipation that we will continue to incur losses in the future; our potential need to raise additional funding; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreement, and our ability to obtain additional financing on favorable terms or at all; the fluctuation of our financial results from quarter to quarter; our ability to use net operating losses and research and development credit carryforwards; our dependence on the success of the OCS; 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; our dependence on a limited number of customers for a significant portion of our net revenue; the timing of and our ability to obtain and maintain regulatory approvals or clearances for our OCS products; our ability to adequately respond to
Investor Contact:
631-807-1986
Investors@transmedics.com
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
Fiscal Three Months Ended | Fiscal Nine Months Ended | ||||||||||
September 28, 2019 | September 29, 2018 | September 28, 2019 | September 29, 2018 | ||||||||
Net revenue | $ | 7,205 | $ | 4,039 | $ | 17,547 | $ | 9,473 | |||
Cost of revenue | 2,989 | 1,907 | 7,425 | 5,238 | |||||||
Gross profit | 4,216 | 2,132 | 10,122 | 4,235 | |||||||
Gross Margin | 59% | 53% | 58% | 45% | |||||||
Operating expenses: | |||||||||||
Research, development and clinical trials | 4,939 | 3,272 | 13,608 | 10,170 | |||||||
Selling, general and administrative | 6,519 | 2,799 | 17,423 | 7,941 | |||||||
Total operating expenses | 11,458 | 6,071 | 31,031 | 18,111 | |||||||
Loss from operations | (7,242) | (3,939) | (20,909) | (13,876) | |||||||
Other income (expense): | |||||||||||
Interest expense | (1,084) | (1,076) | (3,290) | (1,647) | |||||||
Change in fair value of preferred stock warrant liability | — | (183) | (341) | (423) | |||||||
Other (expense) income, net | 56 | 101 | 200 | (152) | |||||||
Total other expense, net | (1,028) | (1,158) | (3,431) | (2,222) | |||||||
Loss before income taxes | (8,270) | (5,097) | (24,340) | (16,098) | |||||||
Provision for income taxes | (10) | (8) | (30) | (23) | |||||||
Net loss | $ | (8,280) | $ | (5,105) | $ | (24,370) | $ | (16,121) | |||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.39) | $ | (3.73) | $ | (2.05) | $ | (11.97) | |||
Weighted average common shares outstanding, basic and diluted | 21,131,618 | 1,368,260 | 11,882,626 | 1,346,942 | |||||||
* Reconciliation of Gross to Net revenue for certain payments made to customers (in thousands) | |||||||||||
Fiscal Three Months Ended | Fiscal Nine Months Ended | ||||||||||
September 28, 2019 | September 29, 2018 | September 28, 2019 | September 29, 2018 | ||||||||
Gross revenue from sales to customers | $ | 7,876 | $ | 4,755 | $ | 19,381 | $ | 10,776 | |||
Less: clinical trial payments reducing revenue | 671 | 716 | 1,834 | 1,303 | |||||||
Total Net Revenue | $ | 7,205 | $ | 4,039 | $ | 17,547 | $ | 9,473 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 28, | December 29. | ||||
2019 | 2018 | ||||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 20,407 | $ | 20,241 | |
Marketable securities | 67,865 | — | |||
Accounts receivable | 6,465 | 3,438 | |||
Inventory | 10,536 | 9,277 | |||
Prepaid expenses and other current assets | 2,093 | 1,838 | |||
Total current assets | 107,366 | 34,794 | |||
Property and equipment, net | 4,746 | 3,474 | |||
Deferred offering costs | — | 3,383 | |||
Restricted cash and other long-term assets | 506 | 506 | |||
Total Assets | $ | 112,618 | $ | 42,157 | |
Current liabilities: | |||||
Accounts payable | $ | 4,766 | $ | 4,720 | |
Accrued expenses and other current liabilities | 9,348 | 7,178 | |||
Deferred revenue | 162 | 306 | |||
Current portion of deferred rent | 365 | 349 | |||
Total current liabilities | 14,641 | 12,553 | |||
Preferred stock warrant liability | — | 898 | |||
Long-term debt, net of discount | 34,023 | 33,670 | |||
Deferred rent, net of current portion | 482 | 759 | |||
Total liabilities | 49,146 | 47,880 | |||
Total Stockholders' Equity (Deficit) | 63,472 | (5,723) | |||
Total Liabilities and Equity | $ | 112,618 | $ | 42,157 |
Source: TransMedics