ANDOVER,
Mass., Feb. 26, 2024 /PRNewswire/ -- TransMedics
Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology
company that is transforming organ transplant therapy for patients
with end-stage lung, heart, and liver failure, today reported
financial results for the quarter and year ended December 31, 2023.
Recent Highlights
- Total revenue of $81.2 million in
the fourth quarter of 2023, a 159% increase compared to the fourth
quarter of 2022
- Total revenue of $241.6 million
in the full year of 2023, a 159% increase compared to the full year
of 2022
- Generated net income of $4.0
million or $0.12 per share in
the fourth quarter of 2023
"2023 was a great year for TransMedics as we achieved 159%
revenue growth and launched TransMedics transplant logistics
services to provide a more operationally and economically efficient
service to our transplant program users," said Waleed Hassanein, MD, President and Chief
Executive Officer. "We are humbled and excited that the use of OCS
technology and our NOP program were primary drivers in increasing
the national heart and liver transplant volumes by 12% in 2023.
This double-digit growth in transplant volumes has not been
witnessed in several years."
Fourth Quarter 2023 Financial Results
Total revenue for the fourth quarter of 2023 was $81.2 million, a 159% increase compared to
$31.4 million in the fourth quarter
of 2022. The increase was due primarily to the increase in
utilization of the OCS through the National OCS
Program ("NOP") as well as additional revenue generated by the
addition of TransMedics logistics services.
Gross margin for the fourth quarter of 2023 was 59% compared to
66% in the fourth quarter of 2022.
Operating expenses for the fourth quarter of 2023 were
$45.3 million compared to
$27.5 million in the fourth
quarter of 2022. The increase in operating expense was driven
primarily by increased investment throughout the organization to
support the growth of the company. Fourth quarter operating
expenses in 2023 included $5.5
million of stock compensation expense compared to
$3.0 million of stock compensation in
the fourth quarter of 2022.
Net income for the fourth quarter of 2023 was $4.0 million compared to net loss of
$6.7 million in the fourth
quarter of 2022.
Full Year 2023 Financial Results
Total revenue for the
full year of 2023 was $241.6 million, a 159% increase compared to
$93.5 million in the full year of
2022. The increase was due primarily to the increase in utilization
of the OCS through the NOP as well as additional revenue generated
by the addition of TransMedics logistics services.
Gross margin for the full year of 2023 was 64% compared to 70%
in the full year of 2022.
Operating expenses for the full year of 2023 were $182.8 million compared to $96.7 million in the full year of 2022. The
increase in operating expense was driven by investment throughout
the organization to support the growth in the business as well as
an acquired in-process research and development charge of
$27.2 million and an additional
$2.0 million in non-recurring
acquisition-related costs, both in the third quarter of 2023. Full
year 2023 operating expenses included $19.4
million of stock compensation expense compared to
$10.3 million in 2022.
Net loss for the full year of 2023 was $25.0 million compared to $36.2 million in the full year of 2022.
Cash was $394.8 million as of
December 31, 2023.
2024 Financial Outlook
TransMedics expects total
revenue for full-year 2024 to be in the range of $360 million
to $370 million, which represents 49%
to 53% growth compared to the company's prior year revenue.
Webcast and Conference Call Details
The TransMedics
management team will host a conference call beginning at
4:30 p.m. ET / 1:30 p.m. PT on
Monday, February 26, 2024. Investors
interested in listening to the conference call may do so by dialing
(866) 807-9684 for domestic callers or (412) 317-5415 for
international callers and ask to be joined into the TransMedics
call. A live and archived webcast of the event will be available on
the "Investors" section of the TransMedics website at
www.transmedics.com.
About TransMedics Group, Inc.
TransMedics is the
world's leader in portable extracorporeal warm perfusion and
assessment of donor organs for transplantation. Headquartered in
Andover, Massachusetts, the
company was founded to address the unmet need for more and better
organs for transplantation and has developed technologies to
preserve organ quality, assess organ viability prior to transplant,
and potentially increase the utilization of donor organs for the
treatment of end-stage heart, lung, and liver failure.
Forward-Looking Statements
This press release contains
forward-looking statements with respect to, among other things, our
full-year guidance, and statements about our operations, financial
position, and business plans. These forward-looking statements are
subject to a number of risks and uncertainties. Our management
cannot predict all risks, nor can we assess the impact of all
factors or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in or implied by any forward-looking statements we may
make. In light of these risks and uncertainties, the
forward-looking events and circumstances discussed in this press
release may not occur and actual results could differ materially
and adversely from those anticipated in or implied by the
forward-looking statements. Some of the key factors that could
cause actual results to differ include: that we continue to incur
losses; our ability to attract and retain key personnel; our
existing and any future indebtedness, including our ability to
comply with affirmative and negative covenants under our credit
agreement to which we will remain subject until maturity; the
fluctuation of our financial results from quarter to quarter; our
need to raise additional funding and our ability to obtain it on
favorable terms, or at all; our ability to use net operating losses
and research and development credit carryforwards; our dependence
on the success of the OCS; our ability to expand access to OCS
through the NOP; our ability to scale our manufacturing and
sterilization capabilities to meet increasing demand for our
products; the rate and degree of market acceptance of the OCS; our
ability to educate patients, surgeons, transplant centers and
private payors of benefits offered by the OCS; our ability to
improve the OCS platform and develop the next generation of the OCS
products; our dependence on a limited number of customers for a
significant portion of our net revenue; our ability to maintain
regulatory approvals or clearances for our OCS products in
the United States, the European
Union, and worldwide; our ability to adequately respond to FDA, or
other competent authorities, follow-up inquiries in a timely
manner; performance of our third-party suppliers and manufacturers;
our use of third parties to transport donor organs and medical
personnel for our NOP and our ability to maintain and grow our
aviation capabilities to support our NOP to reduce dependence on
third party transportation, including by means of the acquisition
of fixed-wing aircraft or other acquisitions, joint ventures or
strategic investments; our ability to maintain Federal Aviation
Administration or other regulatory licenses or approvals for our
aircraft services; price increases of the components of our
products and maintenance, parts and fuel for our aircraft; the
timing or results of post-approval studies and any clinical trials
for the OCS; our manufacturing, sales, marketing and clinical
support capabilities and strategy; attacks against our information
technology infrastructure; the economic, political and other risks
associated with our foreign operations; our ability to protect,
defend, maintain and enforce our intellectual property rights
relating to the OCS and avoid allegations that our products
infringe, misappropriate or otherwise violate the intellectual
property rights of third parties; the pricing of the OCS, as well
as the reimbursement coverage for the OCS in the United States and internationally;
regulatory developments in the United
States, European Union and other jurisdictions; the extent
and success of competing products that are or may become available;
our ability to service our 1.50% convertible senior notes, due
2028; the impact of any product recalls or improper use of our
products; risks related to retaining key Summit employees and risks
related to providing logistics and aviation services and owning
aircraft; our estimates regarding revenues, expenses and needs for
additional financing; and other factors that may be described in
our filings with the Securities and Exchange Commission (the
"SEC"). Additional information will be made available in our annual
and quarterly reports and other filings that we make with the SEC.
The forward-looking statements in this press release speak only as
of the date of this press release. Factors or events that could
cause our actual results to differ may emerge from time to time,
and we are not able to predict all of them. We undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except
as may be required by applicable law.
Investor Contact:
Brian
Johnston
332-895-3222
Investors@transmedics.com
TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
Net product
revenue
|
|
$
51,874
|
|
$
25,074
|
|
$
176,069
|
|
$
79,234
|
Service
revenue
|
|
29,300
|
|
6,301
|
|
65,554
|
|
14,225
|
Total
revenue
|
|
81,174
|
|
31,375
|
|
241,623
|
|
93,459
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Cost of net product
revenue
|
|
14,065
|
|
5,281
|
|
41,015
|
|
16,970
|
Cost of service
revenue
|
|
19,185
|
|
5,391
|
|
46,515
|
|
11,217
|
Total cost of
revenue
|
|
33,250
|
|
10,672
|
|
87,530
|
|
28,187
|
Gross profit
|
|
47,924
|
|
20,703
|
|
154,093
|
|
65,272
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
59 %
|
|
66 %
|
|
64 %
|
|
70 %
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research, development
and clinical trials
|
|
10,761
|
|
5,756
|
|
36,055
|
|
26,812
|
Acquired in-process
research and development expenses
|
|
—
|
|
—
|
|
27,212
|
|
—
|
Selling, general and
administrative
|
|
34,560
|
|
21,726
|
|
119,553
|
|
69,897
|
Total operating
expenses
|
|
45,321
|
|
27,482
|
|
182,820
|
|
96,709
|
Income (loss) from
operations
|
|
2,603
|
|
(6,779)
|
|
(28,727)
|
|
(31,437)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(3,605)
|
|
(1,007)
|
|
(10,791)
|
|
(3,726)
|
Other income (expense),
net
|
|
4,865
|
|
1,085
|
|
12,847
|
|
(1,002)
|
Total other income
(expense), net
|
|
1,260
|
|
78
|
|
2,056
|
|
(4,728)
|
Income (loss) before
income taxes
|
|
3,863
|
|
(6,701)
|
|
(26,671)
|
|
(36,165)
|
(Provision) benefit for
income taxes
|
|
168
|
|
(19)
|
|
1,643
|
|
(66)
|
Net income
(loss)
|
|
$
4,031
|
|
$
(6,720)
|
|
$
(25,028)
|
|
$
(36,231)
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.12
|
|
$
(0.21)
|
|
$
(0.77)
|
|
$
(1.23)
|
Diluted
|
|
$
0.12
|
|
$
(0.21)
|
|
$
(0.77)
|
|
$
(1.23)
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
32,644,525
|
|
32,010,621
|
|
32,517,372
|
|
29,556,633
|
Diluted
|
|
34,179,059
|
|
32,010,621
|
|
32,517,372
|
|
29,556,633
|
TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
|
|
|
|
December 31,
|
|
|
2023
|
|
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
394,812
|
|
$
201,182
|
Accounts
receivable
|
|
63,576
|
|
27,611
|
Inventory
|
|
44,235
|
|
20,605
|
Prepaid expenses and
other current assets
|
|
8,031
|
|
2,896
|
Total current assets
|
|
510,654
|
|
252,294
|
Property, plant and
equipment, net
|
|
173,941
|
|
19,223
|
Operating lease
right-of-use assets
|
|
6,546
|
|
5,130
|
Restricted
cash
|
|
500
|
|
500
|
Goodwill
|
|
11,990
|
|
—
|
Acquired intangible
assets, net
|
|
2,354
|
|
—
|
Other non-current
assets
|
|
62
|
|
—
|
Total
assets
|
|
$
706,047
|
|
$
277,147
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
12,717
|
|
$
3,341
|
Accrued expenses and
other current liabilities
|
|
38,221
|
|
18,635
|
Deferred
revenue
|
|
1,961
|
|
241
|
Operating lease
liabilities
|
|
2,035
|
|
1,444
|
Total current liabilities
|
|
54,934
|
|
23,661
|
Convertible senior
notes, net
|
|
447,140
|
|
—
|
Long-term debt,
net
|
|
59,064
|
|
58,696
|
Operating lease
liabilities, net of current portion
|
|
7,707
|
|
7,415
|
Total
liabilities
|
|
568,845
|
|
89,772
|
Total
stockholders' equity
|
|
137,202
|
|
187,375
|
Total
liabilities and stockholders' equity
|
|
$
706,047
|
|
$
277,147
|
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SOURCE TransMedics Group, Inc.