UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
On May 09, 2022, the Company issued a press release (the “Press Release”) announcing its financial results for the first three months ended March 31, 2022. A copy of the Press Release is attached as Exhibit 99.1 to this current report on Form 8-K.
The information under Item 2.02 in this current report on Form 8-K and the related information in the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
(d) Exhibits
| Exhibit Number | Description | |
| 99.1 | Press Release dated May 9, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Shockwave Medical, Inc. | ||
| Date: May 9, 2022 | By: | /s/ Daniel K. Puckett |
| Daniel K. Puckett | ||
| Chief Financial Officer | ||
EXHIBIT 99.1
Shockwave Medical Reports First Quarter 2022 Financial Results
SANTA CLARA, Calif., May 09, 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 March 31, 2022.
Recent Highlights
- Recognized revenue of $93.6 million for the first quarter of 2022, representing an increase of 194% from the same period in 2021
- Received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan
- Announced the global commercial availability and launch of the Shockwave M5+ peripheral IVL catheter after receiving both CE Mark and U.S. Food and Drug Administration (FDA) clearance
“Our growth this quarter was driven by strong execution from our teams across the globe, despite the myriad geopolitical, health and economic challenges that continue to face us all.” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “The exceptional progress that the Shockwave team has made this quarter continues to demonstrate what an important solution IVL has become for patients who suffer from calcified arterial disease. We look forward to continuing to partner with our customers to help them enhance outcomes for their patients.”
First Quarter 2022 Financial Results
Revenue for the first quarter ended March 31, 2022 was $93.6 million, a 194% increase from $31.9 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 first quarter of 2022 was $80.7 million compared to $24.0 million for the first quarter of 2021. Gross margin for the first quarter of 2022 was 86%, as compared to 75% in the first 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 first quarter of 2022 were $65.4 million, a 58% increase from $41.5 million in the first 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 first quarter of 2022 was $14.5 million, compared to a net loss of $23.6 million in the same period of 2021. Basic and diluted net income per share for the period was $0.41 and $0.39, respectively.
Cash, cash equivalents and short-term investments totaled $201.1 million as of March 31, 2022.
2022 Financial Guidance
Shockwave Medical projects revenue for the full year 2022 to range from $435 million to $455 million, which represents 83% to 92% growth over the Company’s prior year revenue. This compares to previous revenue guidance of $405 million to $425 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, May 9, 2022, to discuss its first quarter 2022 financial results. The call may be accessed through an operator by dialing (866) 795-9106 for domestic callers or (470) 495-9173 for international callers, using conference ID: 7258221. 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) | |||||||||
| March 31, 2022 (Unaudited) | December 31, 2021 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 66,252 | $ | 89,209 | |||||
| Short-term investments | 134,875 | 111,772 | |||||||
| Accounts receivable, net | 47,842 | 37,435 | |||||||
| Inventory | 53,369 | 42,978 | |||||||
| Prepaid expenses and other current assets | 7,572 | 4,508 | |||||||
| Total current assets | 309,910 | 285,902 | |||||||
| Operating lease right-of-use assets | 26,729 | 27,496 | |||||||
| Property and equipment, net | 27,886 | 24,361 | |||||||
| Equity method investment | 5,940 | 5,987 | |||||||
| Other assets | 2,055 | 1,936 | |||||||
| TOTAL ASSETS | $ | 372,520 | $ | 345,682 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 8,467 | $ | 3,520 | |||||
| Term notes, current portion | 8,250 | 5,500 | |||||||
| Accrued liabilities | 33,019 | 40,870 | |||||||
| Lease liability, current portion | 1,294 | 1,738 | |||||||
| Total current liabilities | 51,030 | 51,628 | |||||||
| Lease liability, noncurrent | 32,361 | 28,321 | |||||||
| Term notes, noncurrent portion | 9,033 | 11,630 | |||||||
| Related party contract liability, noncurrent portion | 12,273 | 12,273 | |||||||
| TOTAL LIABILITIES | 104,697 | 103,852 | |||||||
| STOCKHOLDERS’ EQUITY: | |||||||||
| Preferred stock | — | — | |||||||
| Common stock | 36 | 35 | |||||||
| Additional paid-in capital | 507,092 | 494,806 | |||||||
| Accumulated other comprehensive loss | (1,017 | ) | (202 | ) | |||||
| Accumulated deficit | (238,288 | ) | (252,809 | ) | |||||
| TOTAL STOCKHOLDERS’ EQUITY | 267,823 | 241,830 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 372,520 | $ | 345,682 | |||||
| SHOCKWAVE MEDICAL, INC. | ||||||||
| Statement of Operations Data | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 93,631 | $ | 31,900 | ||||
| Cost of revenue: | ||||||||
| Cost of product revenue | 12,890 | 7,892 | ||||||
| Gross profit | 80,741 | 24,008 | ||||||
| Operating expenses: | ||||||||
| Research and development | 17,019 | 10,277 | ||||||
| Sales and marketing | 35,961 | 23,992 | ||||||
| General and administrative | 12,389 | 7,226 | ||||||
| Total operating expenses | 65,369 | 41,495 | ||||||
| Income (Loss) from operations | 15,372 | (17,487 | ) | |||||
| Share in net loss of equity method investment | (47 | ) | (5,523 | ) | ||||
| Interest expense | (297 | ) | (312 | ) | ||||
| Other expense, net | (310 | ) | (235 | ) | ||||
| Net income (loss) before taxes | 14,718 | (23,557 | ) | |||||
| Income tax provision | 197 | 44 | ||||||
| Net income (loss) | $ | 14,521 | $ | (23,601 | ) | |||
| Net income (loss) per share, basic | $ | 0.41 | $ | (0.68 | ) | |||
| Net income (loss) per share, diluted | $ | 0.39 | $ | (0.68 | ) | |||
| Shares used in computing net income (loss) per share, basic | 35,587,337 | 34,797,400 | ||||||
| Shares used in computing net income (loss) per share, diluted | 37,623,477 | 34,797,400 | ||||||