Axonics® Reports Third Quarter 2022 Financial Results

Axonics® Reports Third Quarter 2022 Financial Results




Axonics® Reports Third Quarter 2022 Financial Results

Generated record quarterly revenue of $70 million, an increase of 50% year over year

Fiscal year 2022 revenue guidance raised to $262 million, an increase of 45% year over year

IRVINE, Calif.–(BUSINESS WIRE)–Axonics, Inc. (Nasdaq: AXNX), a global medical technology company that is developing and commercializing novel products for the treatment of bladder and bowel dysfunction, today reported financial results for the three months ended September 30, 2022.

“This quarter’s record revenue result reflects growing demand from physicians and their patients for our best-in-class incontinence products,” said Raymond W. Cohen, chief executive officer of Axonics. “In the third quarter, total revenue increased by 50% compared to the prior year period. Sacral neuromodulation revenue grew 42% year over year, benefiting from the overwhelmingly positive physician response to the commercial launch of the Axonics F15™ recharge-free SNM system. Bulkamid® generated another record revenue quarter and we now expect this product to generate $50 million of revenue in 2022, which is two years ahead of our original forecast at the time of the acquisition in February 2021.”

Cohen continued, “In addition to strong commercial execution, we continue to make progress on several key initiatives, including our direct-to-consumer advertising campaign, expansion of our in-house manufacturing capabilities that has benefited gross margin, and FDA review for approval of our fourth-generation rechargeable SNM system. We remain confident that our commitment to innovation, quality and providing physicians and patients strong clinical support will continue to drive market expansion and advance Axonics on its path to incontinence market leadership.”

Third Quarter 2022 Financial Results

  • Net revenue was $70.4 million in third quarter 2022, an increase of 50% compared to $46.9 million in the prior year period.

    • Sacral neuromodulation revenue was $56.9 million, of which $55.6 million was generated in the U.S. and the remainder in international markets.
    • Bulkamid revenue was $13.5 million, of which $11.0 million was generated in the U.S. and the remainder in international markets.
  • Gross margin was 72.8% in third quarter 2022 compared to 66.5% in the prior year period.
  • Operating expenses were $67.6 million in third quarter 2022 and includes $8.2 million of non-cash costs for the change in fair value of contingent consideration related to the acquisition of Bulkamid. Operating expenses were $47.7 million in the prior year period.

    • Excluding acquisition-related costs, adjusted operating expenses were $59.4 million in third quarter 2022.
  • Net loss was $16.3 million in third quarter 2022 compared to net loss of $17.3 million in the prior year period.
  • Cash, cash equivalents and short-term investments were $350 million as of September 30, 2022.

Fiscal Year 2022 Revenue Guidance

Axonics has updated its fiscal year 2022 revenue guidance as follows:

  • Total company revenue of $262 million, an increase of 45% compared to fiscal year 2021. This compares to prior revenue guidance of $253 million.
  • Sacral neuromodulation revenue of $212 million, an increase of 35% compared to fiscal year 2021.
  • Bulkamid revenue of $50 million, an increase of 120% compared to fiscal year 2021.

Webcast and Conference Call

Axonics will host a conference call today at 4:30 p.m. Eastern Time to discuss financial results and recent business developments. To join the conference call by telephone, interested parties are required to register in advance by using the following link: Axonics 3Q22 registration. After registering, a confirmation email will be sent that includes the dial-in number and unique access code required to join the conference call by telephone.

For those not planning to ask a question on the conference call, the company recommends joining the live webcast, which can be accessed by using the following link: Axonics 3Q22 webcast. A replay of the webcast will be available shortly after the conclusion of the conference call and will be archived in the Events section of the Axonics investor relations website.

About Axonics

Based in Irvine, Calif., Axonics is a global medical technology company that is developing and commercializing novel products for adults with bladder and bowel dysfunction. Axonics recently ranked No. 1 on the 2021 Deloitte Technology Fast 500™ and the 2022 Financial Times ranking of the 500 fastest growing companies in the Americas.

Axonics sacral neuromodulation (SNM) systems provide adults suffering from overactive bladder and/or fecal incontinence with long-lived, easy to use, safe, clinically effective therapy. In addition, the company’s best-in-class urethral bulking hydrogel, Bulkamid®, provides safe and durable symptom relief to women with stress urinary incontinence (SUI). Overactive bladder affects an estimated 87 million adults in the U.S. and Europe, with an additional 40 million adults estimated to suffer from fecal incontinence. SUI affects an estimated 29 million women in the U.S. alone. Axonics’ clinically proven products are offered at hundreds of medical centers across the U.S. and abroad. Reimbursement coverage is well established in the U.S. and is a covered service in most European countries. For more information, visit www.axonics.com.

Forward-Looking Statements

Statements made in this press release that relate to future plans, events, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Words such as “plans,” “expects,” “believes,” “anticipates,” “designed,” and similar words are intended to identify forward-looking statements. While these forward-looking statements are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risks and uncertainties disclosed in Axonics filings with the Securities and Exchange Commission, all of which are available online at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Axonics undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.

Axonics, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

September 30,
2022

December 31,
2021

 

 

(unaudited)

 

ASSETS

 

 

Current assets

 

 

Cash and cash equivalents

$

241,331

 

$

220,878

 

Short-term investments

 

108,682

 

 

 

Accounts receivable, net of allowance for credit losses of $298 and $355 at September 30, 2022 and December 31, 2021, respectively

 

36,960

 

 

29,044

 

Inventory, net

 

57,827

 

 

64,946

 

Prepaid expenses and other current assets

 

4,561

 

 

6,449

 

Total current assets

 

449,361

 

 

321,317

 

Property and equipment, net

 

7,103

 

 

6,915

 

Intangible assets, net

 

81,787

 

 

106,469

 

Other assets

 

7,085

 

 

7,734

 

Goodwill

 

86,942

 

 

105,510

 

Total assets

$

632,278

 

$

547,945

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities

 

 

Accounts payable

$

9,972

 

$

7,654

 

Accrued liabilities

 

7,106

 

 

5,435

 

Accrued compensation and benefits

 

11,742

 

 

12,413

 

Operating lease liability, current portion

 

1,523

 

 

1,366

 

Other current liabilities

 

30,500

 

 

 

Total current liabilities

 

60,843

 

 

26,868

 

Operating lease liability, net of current portion

 

7,960

 

 

9,052

 

Deferred tax liabilities, net

 

13,957

 

 

19,217

 

Other long-term liabilities

 

 

 

10,370

 

Total liabilities

 

82,760

 

 

65,507

 

Stockholders’ equity

 

 

Preferred stock, par value $0.0001 per share; 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2022 and December 31, 2021

 

 

 

 

Common stock, par value $0.0001, 75,000,000 and 50,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively; 49,479,594 and 46,330,167 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

5

 

 

5

 

Additional paid-in capital

 

960,627

 

 

803,559

 

Accumulated deficit

 

(374,929

)

 

(314,566

)

Accumulated other comprehensive loss

 

(36,185

)

 

(6,560

)

Total stockholders’ equity

 

549,518

 

 

482,438

Total liabilities and stockholders’ equity

$

632,278

 

$

547,945

 

Axonics, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

 

2022

2021

2022

2021

Net revenue

$

70,384

 

$

46,913

 

$

187,784

 

$

127,155

 

Cost of goods sold

 

19,124

 

 

15,719

 

 

53,086

 

 

46,828

 

Gross profit

 

51,260

 

 

31,194

 

 

134,698

 

 

80,327

 

Operating expenses

 

 

 

 

Research and development

 

7,936

 

 

8,648

 

 

26,307

 

 

27,115

 

General and administrative

 

9,389

 

 

7,443

 

 

29,974

 

 

22,104

 

Sales and marketing

 

39,751

 

 

28,112

 

 

112,195

 

 

74,451

 

Amortization of intangible assets

 

2,317

 

 

2,216

 

 

7,112

 

 

5,094

 

Acquisition-related costs

 

8,242

 

 

1,277

 

 

20,447

 

 

5,691

 

Total operating expenses

 

67,635

 

 

47,696

 

 

196,035

 

 

134,455

 

Loss from operations

 

(16,375

)

 

(16,502

)

 

(61,337

)

 

(54,128

)

Other income (expense)

 

 

 

 

Interest income

 

1,501

 

 

9

 

 

1,904

 

 

24

 

Interest and other expense

 

(1,898

)

 

(229

)

 

(3,026

)

 

(7,528

)

Other expense, net

 

(397

)

 

(220

)

 

(1,122

)

 

(7,504

)

Loss before income tax (benefit) expense

 

(16,772

)

 

(16,722

)

 

(62,459

)

 

(61,632

)

Income tax (benefit) expense

 

(520

)

 

528

 

 

(2,096

)

 

3,269

 

Net loss

 

(16,252

)

 

(17,250

)

 

(60,363

)

 

(64,901

)

Foreign currency translation adjustment

 

(12,057

)

 

(5,138

)

 

(29,625

)

 

(6,481

)

Comprehensive loss

$

(28,309

)

$

(22,388

)

$

(89,988

)

$

(71,382

)

 

 

 

 

 

Net loss per share, basic and diluted

$

(0.34

)

$

(0.38

)

$

(1.31

)

$

(1.53

)

Weighted-average shares used to compute basic and diluted net loss per share

 

47,208,192

 

 

44,848,023

 

 

46,185,209

 

 

42,436,061 

 

Axonics, Inc.

Net Revenue by Product and Region

(in thousands)

(unaudited)

 

 

Three Months Ended

September 30,

Nine Months Ended

September 30,

 

2022

2021

2022

2021

Sacral neuromodulation

 

 

 

 

United States

$

55,610

$

39,147

$

147,793

$

110,135

International

 

1,249

 

922

 

3,894

 

3,031

Sacral neuromodulation total

$

56,859

$

40,069

$

151,687

$

113,166

 

 

 

 

 

Bulkamid

 

 

 

 

United States

$

11,045

$

3,921

$

27,837

$

6,870

International

 

2,480

 

2,923

 

8,260

 

7,119

Bulkamid total

$

13,525

$

6,844

$

36,097

$

13,989

Total net revenue

$

70,384

$

46,913

$

187,784

$

127,155

 

Contacts

Axonics contact:

Neil Bhalodkar

Investor Relations

949-336-5293

IR@axonics.com