Axonics, Inc. (Nasdaq: AXNX), a medical technology firm specializing in innovative and minimally invasive products for bladder and bowel dysfunction treatment, announced its financial results for the three months ending March 31, 2024.
“Our commercial team maintained exceptional performance in the first quarter, achieving a 29% year-over-year revenue growth across our range of incontinence products,” stated Raymond W. Cohen, CEO. “This growth was fueled by increased utilization and market share among existing sacral neuromodulation customers, as well as the addition of new accounts. Moreover, we achieved a record gross margin of 75.8%, driven by improved manufacturing efficiencies in Irvine.”
Mr. Cohen added, “Our confidence in driving market expansion remains strong, supported by our commitment to innovation, quality, direct-to-consumer advertising, and robust clinical support. We are excited about the global impact we can make as part of Boston Scientific, enabling us to offer our life-changing incontinence therapies to a broader patient population than ever before.”
First Quarter 2024 Financial Highlights:
- Net revenue reached $91.4 million, up by 29% compared to the same period last year.
- Sacral neuromodulation revenue totaled $71.7 million, marking a 30% increase year-over-year.
- Bulkamid revenue amounted to $19.7 million, reflecting a 27% increase from the previous year.
- Gross margin expanded to 75.8%, compared to 74.3% in the prior year period.
- Operating expenses were $88.4 million, including $3.8 million of acquisition-related costs related to the Boston Scientific merger.
- Net loss amounted to $19.1 million, compared to a net loss of $9.2 million in the prior year period.
- Adjusted EBITDA reached $3.0 million, up from $0.9 million in the prior year period.
Due to the pending merger with Boston Scientific, Axonics ceased issuing new equity grants to employees as of January 2024. Consequently, approximately $6 million of compensation expense, previously disclosed in Schedule 14A on January 8, 2024, shifted to cash compensation in 1Q24 and is added back to adjusted EBITDA.
As of March 31, 2024, cash, cash equivalents, short-term investments, and restricted cash totaled $349 million.
About Axonics:
Axonics is a global medical technology company specializing in innovative products for adults with bladder and bowel dysfunction. The company’s sacral neuromodulation systems offer long-lived, safe, and clinically effective therapy for overactive bladder and/or fecal incontinence. Additionally, Axonics’ urethral bulking hydrogel, Bulkamid®, provides symptom relief to women with stress urinary incontinence.
Use of Non-GAAP Financial Measures:
In addition to GAAP financial measures, Axonics provides certain non-GAAP financial measures to supplement its financial statements. Adjusted EBITDA, a non-GAAP measure, is calculated to better understand short-term and long-term financial trends. Management believes these measures provide insight into the company’s ongoing core business operations and financial condition.
However, non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for GAAP financial results. Investors are encouraged to review the reconciliation of non-GAAP financial measures to GAAP financial measures included in the press release.
