Shockwave Medical reports USD 35M earnings in Q3

Shockwave Medical, Inc. reported financial results for the three months ended September 30, 2023.

Recent highlights

• Recognized revenue of $186.0 million for the third quarter of 2023, representing an increase of 42% from the same period in 2022
• Announced, priced and closed an offering for convertible debt, with net proceeds of $634.4 million
• Introduced the Shockwave C²⁺ Coronary Intravascular Lithotripsy (IVL) catheter at the 35th Transcatheter Cardiovascular Therapeutics (TCT) annual scientific symposium of the Cardiovascular Research Foundation
• Granted a Category I Current Procedural Terminology (CPT®) add-on code for procedures involving coronary Intravascular Lithotripsy (IVL) by the U.S. Centers for Medicare & Medicaid Services (CMS) as part of the Calendar Year 2024 Physician Fee Schedule (PFS) final rule, which will provide physicians with a 20-30% increase in remuneration (RVUs and/or fees) for the additional work associated with performing coronary IVL

“We had a strong quarter with solid performance from our businesses and significant progress operationally across the globe,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “We were excited to share more about some of the exciting happenings at Shockwave during our recent Investor Innovation Day, and we look forward to bringing a continuous pipeline of novel products to our customers to improve outcomes for patients suffering from cardiovascular disease.”

Third quarter 2023 financial results
Revenue for the third quarter ended September 30, 2023, was $186.0 million, a 42% increase from $131.3 million in the same period of 2022. The growth was primarily driven by an increase in the purchase volume of our products in both the United States and internationally.

Gross profit for the third quarter of 2023 was $161.5 million compared to $113.5 million for the third quarter of 2022. Gross margin percentage was 87% for the three months ended September 30, 2023, compared to 86% for the three months ended September 30, 2022.

Total operating expenses for the third quarter of 2023 were $117.9 million, a 54% increase from $76.7 million in the third quarter of 2022. The increase was primarily driven by sales force expansion and higher headcount to support the growth of the business.

Net income for the third quarter of 2023 was $35.0 million, which was consistent with net income in the same period of 2022. Basic and diluted net income per share for the third quarter of 2023 was $0.95 and $0.92 respectively.

Adjusted EBITDA improved by approximately 31% to $65.0 million, in the third quarter of 2023, compared to adjusted EBITDA of $49.8 million in the third quarter of 2022. Adjusted EBITDA is a non-GAAP measure.

Cash, cash equivalents and short-term investments totaled $917.3 million as of September 30, 2023, which is inclusive of net proceeds of $634.4 million from our convertible debt offering in August of 2023.

2023 financial guidance
Shockwave Medical projects revenue for the full year 2023 to range from $725 million to $730 million, which represents 48% to 49% growth over the Company’s prior year revenue.
MB Bureau