Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device
company with a mission to treat and transform the lives of patients
suffering from venous and other diseases, today reported financial
results for its fourth quarter and full year ended
December 31, 2023.
Fourth Quarter Financial and Recent
Business Highlights
- Generated revenue of $132.1 million in Q4 of 2023, up 22.6%
over the same quarter last year.
- GAAP operating loss was $9.3 million in Q4 of 2023, compared to
a $5.9 million operating loss in the same quarter of last
year.
- Non-GAAP operating loss was $0.3 million in Q4 of 2023,
compared to a $5.9 million non-GAAP operating loss in the same
quarter of last year.
- Closed LimFlow acquisition on November 15, 2023.
- Completed enrollment in the PEERLESS randomized controlled
trial.
“Our solid fourth quarter performance was driven by strong
underlying procedural growth and crisp execution across our three
growth pillars led by our core VTE business, with meaningful
contributions from emerging therapies and international
geographies,” said Drew Hykes, CEO of Inari Medical. "We also
closed on the acquisition of LimFlow in mid-November. In terms of
clinical evidence generation, the completion of enrollment in
PEERLESS, our first RCT, represents an important step forward in
our commitment to generating the highest level of clinical
evidence. Taken together, these efforts will result in the
establishment of our therapy as the standard of care for VTE. With
a strong VTE foundation and encouraging commercial traction across
emerging therapies and international, we remain confident in our
ability to generate sustainable growth for many years to come. Most
importantly, we remain fully committed to advancing our mission of
addressing major unmet needs for patients."
Fourth Quarter 2023 Financial ResultsRevenue
was $132.1 million for the fourth quarter of 2023, up 22.6%
compared to $107.8 million for the fourth quarter of 2022. The
increase over the prior year quarter was driven primarily by
increased adoption of our procedures, new products, and global
commercial expansion.
Gross profit was $115.1 million for the fourth quarter of 2023,
compared to $94.6 million for the fourth quarter of 2022. Gross
margin was 87.1% for the fourth quarter of 2023, compared to 87.8%
for the fourth quarter of 2022.
Operating expenses for the fourth quarter of 2023 were $124.4
million, compared to $100.5 million for the fourth quarter of 2022.
The increase was mainly driven by transaction costs associated with
the acquisition of LimFlow; personnel-related expenses, including
commissions and stock-based compensation associated with increased
headcount to fund the expansion of the commercial, research and
development, clinical, and support organizations; sales and
marketing related efforts; and amortization expense related to an
intangible asset acquired in the LimFlow acquisition.
GAAP operating loss was $9.3 million in the fourth quarter of
2023, compared with a $5.9 million GAAP operating loss for the
fourth quarter of 2022.
Non-GAAP operating loss was $0.3 million in the fourth quarter
of 2023. The following items were excluded from the non-GAAP
operating loss: acquisition-related costs of $7.7 million and
acquired intangible asset amortization of $1.3 million. There were
no non-GAAP adjustments related to the company’s operating loss for
the fourth quarter of 2022.
Net loss was $4.7 million for the fourth quarter of 2023 and net
loss per share was $0.08 on a weighted-average basic and diluted
share count of 57.6 million, compared to a net loss of $5.8 million
and a net loss per share of $0.11 on a weighted-average basic and
diluted share count of 53.6 million, in the same period of the
prior year.
Full Year 2023 Financial ResultsRevenue was
$493.6 million for the year ended December 31, 2023, up 28.7%
compared to $383.5 million in the prior year. The increase over the
prior period was driven primarily by continued U.S. and
international commercial expansion, increased adoption of our
procedures, and introduction of new products.
Gross profit was $434.6 million for the full year of 2023,
compared to $339.0 million for the prior year. Gross margin was
88.0% for the full year of 2023, compared to 88.4% for the prior
year.
Operating expenses for the full year of 2023 were $448.6
million, compared to $367.1 million for the prior year. The
increase was mainly driven by personnel-related expenses, including
commissions and stock-based compensation associated with increased
headcount to fund the expansion of the commercial, research and
development, clinical, and support organizations.
GAAP operating loss was $14.0 million for the full year of 2023,
compared with a $28.1 million GAAP operating loss in the prior
year.
Non-GAAP operating loss was $2.4 million for the full year of
2023. The following items were excluded from the non-GAAP operating
loss: acquisition-related costs of $10.4 million and acquired
intangible asset amortization of $1.3 million. There were no
non-GAAP adjustments related to the company’s full year 2022
operating loss.
Net loss was $1.6 million for the full year of 2023 and net loss
per share was $0.03 on a weighted-average basic and diluted share
count of 56.8 million, compared to a net loss of $29.3 million and
net loss per share of $0.55 on a weighted-average basic and diluted
share count of 52.8 million.
Full Year 2024 Revenue Guidance
- Inari expects full year 2024 revenue of $580 million to $595
million, reflecting growth of approximately 17.5% to 20.5% over
2023.
- The company still expects to reach sustained operating
profitability in the first half of 2025.
Webcast and Conference Call InformationInari
Medical will host a conference call to discuss the fourth quarter
and full year 2023 financial results and acquisition of LimFlow
after market close on February 28, 2024 at 1:30 p.m. Pacific Time /
4:30 p.m. Eastern Time. The conference call can be accessed live by
dialing (844) 825-9789 for domestic callers or (412) 317-5180 for
international callers. The live webinar and presentation may be
accessed by visiting the Events Section of the Inari investor
relations website at ir.inarimedical.com.
Use of Non-GAAP Financial MeasuresThis press
release contains references to non-GAAP operating income (loss),
which is considered a non-GAAP financial measure. This means that
non-GAAP operating income (loss) is determined by methods other
than in accordance with accounting principles generally accepted in
the United States (GAAP). As used by Inari, non-GAAP operating
income (loss) excludes from GAAP operating income (loss) the
following items: amortization of acquired intangible assets and
acquisition-related costs. Beginning in the fourth quarter of 2023,
we began presenting non-GAAP operating income (loss) to exclude
these charges because we believe these charges are significantly
impacted by the timing and valuation of acquisitions, such as our
LimFlow acquisition in the fourth quarter of 2023. Our management
believes the presentation of non-GAAP operating income (loss) is
useful because it provides meaningful comparisons to prior periods
and provides visibility to our underlying operating performance and
an additional means to evaluate the cost and expense trends
excluding the impact of these acquisition-related items, which are
not related to our core business operations.
Our definition of non-GAAP operating income (loss) may differ
from similarly titled measures used by others. Non-GAAP operating
income (loss) should be considered supplemental to, and not a
substitute for, financial information prepared in accordance with
GAAP. We encourage investors to review the reconciliation of
non-GAAP operating income (loss) to GAAP operating income (loss),
which has been provided in the financial statement tables included
in this press release.
About Inari Medical, Inc.Patients first. No
small plans. Take care of each other. These are the guiding
principles that form the ethos of Inari Medical. We are committed
to improving lives in extraordinary ways by creating innovative
solutions for both unmet and underserved health needs. In addition
to our purpose-built solutions, we leverage our capabilities in
education, clinical research, and program development to improve
patient outcomes. We are passionate about our mission to establish
our treatments as the standard of care for venous disease,
including venous thromboembolism, chronic venous disease, and
beyond. We are just getting started.
Forward Looking StatementsStatements in this
press release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to substantial risks and uncertainties.
Forward-looking statements contained in this press release may be
identified by the use of words such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “could,” “intend,” “target,”
“project,” “contemplate,” “believe,” “estimate,” “predict,”
“potential” or “continue” or the negative of these terms or other
similar expressions. Forward-looking statements include
expectations regarding Inari’s core business, its ability to
integrate LimFlow, expectations regarding future growth, Inari's
ability to meet customers' needs, and timing for achieving
sustained operating profitability, and are based on Inari’s current
expectations, forecasts, and assumptions. Forward-looking
statements are subject to inherent uncertainties, risks and
assumptions that are difficult to predict, and actual outcomes and
results could differ materially due to a number of factors. These
and other risks and uncertainties include those described more
fully in the section titled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operation” and elsewhere in its Annual Report on Form 10-K for the
period ended December 31, 2023, and in Inari’s other reports filed
with the U.S. Securities and Exchange Commission. Forward-looking
statements contained in this announcement are based on information
available to Inari as of the date hereof and are made only as of
the date of this release. Inari undertakes no obligation to update
such information except as required under applicable law. These
forward-looking statements should not be relied upon as
representing Inari’s views as of any date subsequent to the date of
this press release. In light of the foregoing, investors are urged
not to rely on any forward-looking statement in reaching any
conclusion or making any investment decision about any securities
of Inari.
Investor Contact:John Hsu, CFAVP, Investor
Relations949-658-3889IR@inarimedical.com
INARI MEDICAL, INC. |
Consolidated Statements of Operations and Comprehensive
Income (Loss) |
(in thousands, except share and per share
data) |
|
|
Three Months EndedDecember
31, |
|
Years ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
$ |
132,094 |
|
|
$ |
107,771 |
|
|
$ |
493,632 |
|
|
$ |
383,471 |
|
Cost of goods sold |
|
17,006 |
|
|
|
13,128 |
|
|
|
59,068 |
|
|
|
44,506 |
|
Gross profit |
|
115,088 |
|
|
|
94,643 |
|
|
|
434,564 |
|
|
|
338,965 |
|
Operating expenses |
|
|
|
|
|
|
|
Research and development |
|
22,892 |
|
|
|
20,412 |
|
|
|
87,533 |
|
|
|
74,221 |
|
Selling, general and administrative |
|
101,495 |
|
|
|
80,122 |
|
|
|
361,063 |
|
|
|
292,843 |
|
Total operating expenses |
|
124,387 |
|
|
|
100,534 |
|
|
|
448,596 |
|
|
|
367,064 |
|
Loss from operations |
|
(9,299 |
) |
|
|
(5,891 |
) |
|
|
(14,032 |
) |
|
|
(28,099 |
) |
Other income (expense) |
|
|
|
|
|
|
|
Interest income |
|
2,714 |
|
|
|
970 |
|
|
|
15,613 |
|
|
|
1,852 |
|
Interest expense |
|
(69 |
) |
|
|
(74 |
) |
|
|
(196 |
) |
|
|
(294 |
) |
Other income |
|
3,478 |
|
|
|
187 |
|
|
|
2,861 |
|
|
|
356 |
|
Total other income |
|
6,123 |
|
|
|
1,083 |
|
|
|
18,278 |
|
|
|
1,914 |
|
(Loss) income before income
taxes |
|
(3,176 |
) |
|
|
(4,808 |
) |
|
|
4,246 |
|
|
|
(26,185 |
) |
Provision for income taxes |
|
1,491 |
|
|
|
990 |
|
|
|
5,882 |
|
|
|
3,082 |
|
Net loss |
$ |
(4,667 |
) |
|
$ |
(5,798 |
) |
|
$ |
(1,636 |
) |
|
$ |
(29,267 |
) |
Other comprehensive income
(loss) |
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
10,002 |
|
|
|
222 |
|
|
|
9,864 |
|
|
|
(592 |
) |
Unrealized gain (loss) on available-for-sale debt securities |
|
41 |
|
|
|
1,572 |
|
|
|
(1,828 |
) |
|
|
1,843 |
|
Total other comprehensive
income |
|
10,043 |
|
|
|
1,794 |
|
|
|
8,036 |
|
|
|
1,251 |
|
Comprehensive income (loss) |
$ |
5,376 |
|
|
$ |
(4,004 |
) |
|
$ |
6,400 |
|
|
$ |
(28,016 |
) |
Net loss per share |
|
|
|
|
|
|
|
Basic |
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.55 |
) |
Diluted |
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.55 |
) |
Weighted average common shares
used to compute net loss per share |
|
|
|
|
|
|
|
Basic |
|
57,639,591 |
|
|
|
53,610,347 |
|
|
|
56,770,657 |
|
|
|
52,837,674 |
|
Diluted |
|
57,639,591 |
|
|
|
53,610,347 |
|
|
|
56,770,657 |
|
|
|
52,837,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INARI MEDICAL, INC. |
Consolidated Balance Sheets |
(in thousands, except share data) |
|
|
|
|
|
December 31,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
38,597 |
|
|
$ |
60,222 |
|
Restricted cash |
|
611 |
|
|
|
— |
|
Short-term investments in debt securities |
|
76,855 |
|
|
|
266,179 |
|
Accounts receivable, net |
|
70,119 |
|
|
|
58,611 |
|
Inventories, net |
|
42,900 |
|
|
|
32,581 |
|
Prepaid expenses and other current assets |
|
6,481 |
|
|
|
5,312 |
|
Total current assets |
|
235,563 |
|
|
|
422,905 |
|
Property and equipment,
net |
|
20,929 |
|
|
|
21,655 |
|
Operating lease right-of-use
assets |
|
48,407 |
|
|
|
50,703 |
|
Goodwill |
|
214,335 |
|
|
|
— |
|
Intangible assets |
|
150,884 |
|
|
|
— |
|
Deposits and other assets |
|
4,117 |
|
|
|
8,889 |
|
Total
assets |
$ |
674,235 |
|
|
$ |
504,152 |
|
Liabilities and
Stockholders' Equity |
|
|
|
Current
liabilities |
|
|
|
Accounts payable |
$ |
10,577 |
|
|
$ |
7,659 |
|
Payroll-related accruals |
|
48,706 |
|
|
|
38,955 |
|
Accrued expenses and other current liabilities |
|
15,364 |
|
|
|
8,249 |
|
Operating lease liabilities, current portion |
|
1,692 |
|
|
|
1,311 |
|
Total current liabilities |
|
76,339 |
|
|
|
56,174 |
|
Operating lease liabilities,
noncurrent portion |
|
30,355 |
|
|
|
30,976 |
|
Deferred tax liability |
|
36,231 |
|
|
|
— |
|
Other long-term liability |
|
66,400 |
|
|
|
— |
|
Total
liabilities |
|
209,325 |
|
|
|
87,150 |
|
Commitments and
contingencies |
|
|
|
Stockholders'
equity |
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no
shares issued and outstanding as of December 31, 2023 and 2022 |
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 300,000,000 shares authorized as of
December 31, 2023 and 2022; 57,762,414 and 54,021,656 shares issued
and outstanding as of December 31, 2023 and 2022, respectively |
|
58 |
|
|
|
54 |
|
Additional paid in capital |
|
504,453 |
|
|
|
462,949 |
|
Accumulated other comprehensive income |
|
8,885 |
|
|
|
849 |
|
Accumulated deficit |
|
(48,486 |
) |
|
|
(46,850 |
) |
Total stockholders'
equity |
|
464,910 |
|
|
|
417,002 |
|
Total liabilities and
stockholders' equity |
$ |
674,235 |
|
|
$ |
504,152 |
|
|
|
|
|
|
|
|
|
INARI
MEDICAL, INC. |
Reconciliation of GAAP Operating Loss to Non-GAAP Operating
Loss |
(in
thousands) |
(Unaudited) |
|
|
|
|
|
Three Months EndedDecember
31, |
|
Years ended December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
GAAP Operating loss |
$ |
(9,299 |
) |
|
$ |
(5,891 |
) |
|
$ |
(14,032 |
) |
|
$ |
(28,099 |
) |
Non-GAAP Adjustments: |
|
|
|
|
|
|
|
Amortization of acquired intangible assets |
|
1,255 |
|
|
|
— |
|
|
|
1,255 |
|
|
|
— |
|
Acquisition-related expense (a) |
|
7,725 |
|
|
|
— |
|
|
|
10,406 |
|
|
|
— |
|
Non-GAAP Operating loss |
$ |
(319 |
) |
|
$ |
(5,891 |
) |
|
$ |
(2,371 |
) |
|
$ |
(28,099 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
(a) For three months ended December 31,
2023, acquisition related expenses included $6.0 million of
transaction costs and $1.7 million of severance and
integration related expenses. For the year ended December 31,
2023, acquisition related expenses included $8.7 million of
transaction costs and $1.7 million of severance and
integration related expenses.
Revenue Disaggregation
Commencing in the fourth quarter of 2023, we began presenting
revenue bifurcated between VTE and Emerging Therapies. The
following table presents the amount of revenue in VTE and Emerging
Therapies recognized for the periods presented (in thousands,
unaudited):
|
Three Months Ended December
31, |
|
Three Months Ended September
30, |
|
Three Months Ended June
30, |
|
Three Months Ended March
31, |
|
2023 |
|
2023 |
|
2023 |
|
2023 |
VTE |
$ |
126,671 |
|
$ |
121,460 |
|
$ |
114,086 |
|
$ |
114,058 |
Emerging Therapies |
|
5,423 |
|
|
4,906 |
|
|
4,919 |
|
|
2,109 |
Total Revenue |
$ |
132,094 |
|
$ |
126,366 |
|
$ |
119,005 |
|
$ |
116,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three MonthsEndedDecember
31, |
|
Three MonthsEndedSeptember
30, |
|
Three MonthsEndedJune 30, |
|
Three MonthsEndedMarch 31, |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
VTE |
$ |
105,978 |
|
$ |
95,980 |
|
$ |
92,721 |
|
$ |
86,752 |
Emerging Therapies |
|
1,793 |
|
|
224 |
|
|
23 |
|
|
— |
Total Revenue |
$ |
107,771 |
|
$ |
96,204 |
|
$ |
92,744 |
|
$ |
86,752 |
Inari Medical (NASDAQ:NARI)
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Inari Medical (NASDAQ:NARI)
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