Inari Medical Reports Second Quarter 2022 Financial Results
August 03 2022 - 4:05PM
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 second quarter ended June 30, 2022.
Second Quarter Revenue and Business
Highlights
- Generated revenue of $92.7 million
in the second quarter of 2022, up 7% sequentially from the first
quarter, and 46% over the same quarter last year.
- Accelerated the expansion of our US
commercial footprint, finishing the quarter with over 270
territories, just shy of our full year target.
- Announced FDA clearance and limited
market release of two new products, one of which targets patients
outside of our core TAM.
- Ended the quarter with $330.5
million in cash, cash equivalents and short-term investments.
“We continue to execute crisply across all of our growth drivers
despite the ongoing challenges to the med tech operating
environment”, said Bill Hoffman, CEO of Inari Medical. “We produced
robust revenue growth, hired our largest class of new sales
professionals and initiated the limited market release of two new
products, including one that targets patients beyond our core TAM.
We remain committed to our mission, and to ideas bigger and more
important than just business. We are thankful for your
support of our work.”
Second Quarter 2022 Financial Results
Revenue was $92.7 million for the second quarter of 2022,
compared to $86.8 million for the prior quarter and $63.5 million
for the second quarter of 2021. The increase over prior periods was
driven by continued U.S. commercial expansion and new product
introductions.
Gross profit was $82.4 million for the second quarter of 2022,
compared to $58.6 million for the same period of 2021. Gross margin
was 88.8% for the second quarter of 2022, compared to 92.4% for the
same period in the prior year, lower primarily due to the move to
our larger production facility in the fourth quarter of 2021.
Operating expenses for the second quarter of 2022 were $91.7
million, compared to $54.5 million for the second quarter of 2021.
The increase was mainly driven by personnel-related expenses as we
increased headcount to fund the expansion of the commercial,
research and development, clinical, and support organizations.
Net loss was $10.2 million for the second quarter of 2022 and
net loss per share was $0.19 on a weighted-average basic and
diluted share count of 53.2 million, compared to a net income of
$4.1 million and a net income per share of $0.08 and $0.07 on a
weighted-average basic share count of 49.7 million and diluted
share count of 55.6 million, respectively, in the same period of
the prior year.
Full-Year 2022 Revenue Guidance
For the full year 2022, we are reaffirming our revenue guidance
range of $360 million to $370 million.
Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the second
quarter 2022 financial results after market close on Wednesday,
August 3, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.
The conference call can be accessed live by registering here.
About Inari Medical, Inc.
Inari Medical, Inc. is a medical device company with a mission
to treat and transform the lives of patients suffering from venous
and other diseases. Our current product offering consists of two
minimally invasive, novel catheter-based mechanical thrombectomy
devices that are designed to remove large clots from large vessels
and eliminate the need for thrombolytic drugs. The company
purpose-built its products for the specific characteristics of the
venous system and the treatment of the two distinct manifestations
of venous thromboembolism, or VTE: deep vein thrombosis and
pulmonary embolism. The ClotTriever system is 510(k)-cleared by FDA
and CE marked for the non-surgical removal of clot from peripheral
blood vessels, including for the use in the treatment of deep vein
thrombosis. The FlowTriever system is 510(k)-cleared by FDA and CE
marked for the non-surgical removal of clot from peripheral blood
vessels, including for the use in the treatment of pulmonary
embolism and clot in transit in the right atrium.
Forward Looking Statements
Statements in this press release may contain “forward-looking
statements” 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 estimated full year 2022 revenue, and are based
on Inari’s current expectations, forecasts, and assumptions, 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, 2021,
and in its 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:
ICR WestwickeCaroline CornerPhone
+1-415-202-5678caroline.corner@westwicke.com
INARI MEDICAL,
INC.Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss)(in
thousands, except share and per share
data)(unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue |
|
$ |
92,744 |
|
|
$ |
63,453 |
|
|
$ |
179,496 |
|
|
$ |
120,850 |
|
Cost of goods sold |
|
|
10,347 |
|
|
|
4,814 |
|
|
|
20,314 |
|
|
|
9,437 |
|
Gross profit |
|
|
82,397 |
|
|
|
58,639 |
|
|
|
159,182 |
|
|
|
111,413 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
18,569 |
|
|
|
11,630 |
|
|
|
34,704 |
|
|
|
19,793 |
|
Selling, general and administrative |
|
|
73,156 |
|
|
|
42,897 |
|
|
|
136,888 |
|
|
|
79,795 |
|
Total operating expenses |
|
|
91,725 |
|
|
|
54,527 |
|
|
|
171,592 |
|
|
|
99,588 |
|
(Loss) income from
operations |
|
|
(9,328 |
) |
|
|
4,112 |
|
|
|
(12,410 |
) |
|
|
11,825 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
214 |
|
|
|
35 |
|
|
|
264 |
|
|
|
103 |
|
Interest expense |
|
|
(73 |
) |
|
|
(74 |
) |
|
|
(146 |
) |
|
|
(147 |
) |
Other income (expense) |
|
|
252 |
|
|
|
7 |
|
|
|
228 |
|
|
|
(34 |
) |
Total other income (expenses) |
|
|
393 |
|
|
|
(32 |
) |
|
|
346 |
|
|
|
(78 |
) |
(Loss) income before income
taxes |
|
|
(8,935 |
) |
|
|
4,080 |
|
|
|
(12,064 |
) |
|
|
11,747 |
|
Provision for income taxes |
|
|
1,252 |
|
|
|
12 |
|
|
|
1,252 |
|
|
|
210 |
|
Net (loss) income |
|
$ |
(10,187 |
) |
|
$ |
4,068 |
|
|
$ |
(13,316 |
) |
|
$ |
11,537 |
|
Other comprehensive income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
(291 |
) |
|
|
57 |
|
|
|
(408 |
) |
|
|
(123 |
) |
Unrealized (loss) gain on available-for-sale debt securities |
|
|
(125 |
) |
|
|
(6 |
) |
|
|
(373 |
) |
|
|
12 |
|
Total other comprehensive (loss)
income |
|
|
(416 |
) |
|
|
51 |
|
|
|
(781 |
) |
|
|
(111 |
) |
Comprehensive (loss) income |
|
$ |
(10,603 |
) |
|
$ |
4,119 |
|
|
$ |
(14,097 |
) |
|
$ |
11,426 |
|
Net (loss) income per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.19 |
) |
|
$ |
0.08 |
|
|
$ |
(0.26 |
) |
|
$ |
0.23 |
|
Diluted |
|
$ |
(0.19 |
) |
|
$ |
0.07 |
|
|
$ |
(0.26 |
) |
|
$ |
0.21 |
|
Weighted average common shares
used to compute net (loss) income per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
53,183,767 |
|
|
|
49,669,652 |
|
|
|
52,075,399 |
|
|
|
49,512,800 |
|
Diluted |
|
|
53,183,767 |
|
|
|
55,595,016 |
|
|
|
52,075,399 |
|
|
|
55,665,193 |
|
INARI MEDICAL,
INC.Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
|
|
June 30,2022 |
|
|
December 31,2021 |
|
Assets |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,724 |
|
|
$ |
92,752 |
|
Short-term investments in debt securities |
|
|
250,772 |
|
|
|
83,348 |
|
Accounts receivable, net |
|
|
49,171 |
|
|
|
42,351 |
|
Inventories, net |
|
|
26,674 |
|
|
|
21,053 |
|
Prepaid expenses and other current assets |
|
|
4,997 |
|
|
|
5,694 |
|
Total current assets |
|
|
411,338 |
|
|
|
245,198 |
|
Property and equipment,
net |
|
|
20,076 |
|
|
|
16,471 |
|
Operating lease right-of-use
assets |
|
|
46,653 |
|
|
|
44,909 |
|
Deposits and other assets |
|
|
6,195 |
|
|
|
981 |
|
Long-term investments in debt
securities |
|
|
— |
|
|
|
3,983 |
|
Total
assets |
|
$ |
484,262 |
|
|
$ |
311,542 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
4,748 |
|
|
$ |
6,541 |
|
Payroll-related accruals |
|
|
27,695 |
|
|
|
24,433 |
|
Accrued expenses and other current liabilities |
|
|
8,076 |
|
|
|
10,737 |
|
Operating lease liabilities, current portion |
|
|
465 |
|
|
|
802 |
|
Total current liabilities |
|
|
40,984 |
|
|
|
42,513 |
|
Operating lease liabilities,
noncurrent portion |
|
|
28,196 |
|
|
|
28,404 |
|
Other long-term liability |
|
|
1,304 |
|
|
|
1,416 |
|
Total
liabilities |
|
|
70,484 |
|
|
|
72,333 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no
shares issued and outstanding as of June 30, 2022 and December
31, 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value, 300,000,000 shares authorized as of
June 30, 2022 and December 31, 2021; 53,305,825 and 50,313,452
shares issued and outstanding as of June 30, 2022 and December
31, 2021, respectively |
|
|
53 |
|
|
|
50 |
|
Additional paid in capital |
|
|
445,807 |
|
|
|
257,144 |
|
Accumulated other comprehensive loss |
|
|
(1,183 |
) |
|
|
(402 |
) |
Accumulated deficit |
|
|
(30,899 |
) |
|
|
(17,583 |
) |
Total stockholders'
equity |
|
|
413,778 |
|
|
|
239,209 |
|
Total liabilities and
stockholders' equity |
|
$ |
484,262 |
|
|
$ |
311,542 |
|
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