Glaukos Announces First Quarter 2024 Financial Results

Published

ALISO VIEJO, Calif.--(BUSINESS WIRE)-- Glaukos Corporation (NYSE: GKOS), an ophthalmic pharmaceutical and medical technology company focused on novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases, today announced financial results for the first quarter ended March 31, 2024. Key highlights include:

  • Record net sales of $85.6 million in Q1 2024 increased 16% year-over-year.
  • Glaucoma record net sales of $67.2 million in Q1 2024 increased 20% year-over-year.
  • Corneal Health net sales of $18.4 million in Q1 2024 increased 4% year-over-year.
  • Gross margin of approximately 76% and non-GAAP gross margin of approximately 83% in Q1 2024.
  • Raised 2024 net sales guidance to $357 to $365 million, compared to $350 million to $360 million previously.

“Our record first quarter results reflect successful global execution of our key strategic plans,” said Thomas Burns, Glaukos chairman and chief executive officer. “We continue to successfully advance our robust pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care and improve outcomes for patients suffering from chronic eye diseases.”

First Quarter 2024 Financial Results

Net sales in the first quarter of 2024 of $85.6 million increased 16% on a reported and constant currency basis, compared to $73.9 million in the same period in 2023.

Gross margin for the first quarter of 2024 was approximately 76%, compared to approximately 76% in the same period in 2023. Non-GAAP gross margin for the first quarter of 2024 was approximately 83%, compared to approximately 83% in the same period in 2023.

Selling, general and administrative (SG&A) expenses for the first quarter of 2024 increased 16% to $62.0 million, compared to $53.6 million in the same period in 2023. Non-GAAP SG&A expenses for the first quarter of 2024 increased 16% to $61.3 million, compared to $52.9 million in the same period in 2023.

GAAP and non-GAAP research and development (R&D) expenses for the first quarter of 2024 decreased 13% to $30.7 million, compared to $35.2 million in the same period in 2023.

Loss from operations in the first quarter of 2024 was $39.1 million, compared to operating loss of $33.0 million in the first quarter of 2023. Non-GAAP loss from operations in the first quarter of 2024 was $32.8 million, compared to non-GAAP operating loss of $26.8 million in the first quarter of 2023.

Net loss in the first quarter of 2024 was $40.8 million, or ($0.82) per diluted share, compared to net loss of $34.6 million, or ($0.72) per diluted share, in the first quarter of 2023. Non-GAAP net loss in the first quarter of 2024 was $34.6 million, or ($0.70) per diluted share, compared to non-GAAP net loss of $28.4 million, or ($0.59) per diluted share, in the first quarter of 2023.

Included in non-GAAP loss from operations, non-GAAP net loss and non-GAAP EPS for the first quarter of 2024 is an acquired in-process R&D (IPR&D) charge of $11.7 million, which caused the non-GAAP loss per diluted share to have an additional loss of ($0.24) in the first quarter of 2024.

The company ended the first quarter of 2024 with approximately $279 million in cash and cash equivalents, short-term investments and restricted cash.

2024 Revenue Guidance

The company expects 2024 net sales to be in the range of $357 million to $365 million based on the latest foreign currency exchange rates.

Webcast & Conference Call

The company will host a conference call and simultaneous webcast today at 1:30 p.m. PT (4:30 p.m. ET) to discuss the results and provide additional information about the company’s financial outlook. A link to the webcast is available on the company’s website at http://investors.glaukos.com. To participate in the conference call, please dial 888-210-2212 (U.S.) or 646-960-0390 (international) and enter Conference ID 7935742. A replay of the webcast will be archived on the company’s website following completion of the call.

Quarterly Summary Document

The company has posted a document on its Investor Relations website under the “Financials & Filings – Quarterly Results” section titled “Quarterly Summary.” This Quarterly Summary document is designed to provide the investment community with a summarized and easily accessible reference document that details the key facts associated with the quarter, the state of the company’s business objectives and strategies and any forward statements or guidance the company may make. This document is provided alongside the company’s earnings press release and is designed to be read by investors before the regularly scheduled quarterly conference call. As such, today’s conference call will be in a format primarily consisting of a questions and answers session, during which Glaukos will address any queries investors have regarding the company’s results. It is the company’s goal that this format will make its quarterly earnings process more efficient and impactful for the investment community going forward.

About Glaukos

Glaukos (www.glaukos.com) is an ophthalmic pharmaceutical and medical technology company focused on developing and commercializing novel therapies for the treatment of glaucoma, corneal disorders and retinal diseases. Glaukos first developed Micro-Invasive Glaucoma Surgery (MIGS) as an alternative to the traditional glaucoma treatment paradigm, launching its first MIGS device commercially in 2012, and continues to develop a portfolio of technologically distinct and leverageable platforms to support ongoing pharmaceutical and medical device innovations. Products or product candidates for each of these platforms are designed to advance the standard of care through better treatment options across the areas of glaucoma, corneal disorders and retinal diseases.

Forward-Looking Statements

This communication contains “forward-looking statements” within the meaning of federal securities laws. All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These statements are based on management’s current expectations, assumptions, estimates and beliefs. Although we believe that we have a reasonable basis for forward-looking statements contained herein, we caution you that they are based on current expectations about future events affecting us and are subject to risks, uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that may cause our actual results to differ materially from those expressed or implied by forward-looking statements in this press release. These potential risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements include, without limitation, uncertainties regarding the impact of the COVID-19 pandemic or other future public health crises on our business; the impact of general macroeconomic conditions including foreign currency fluctuations; the reduced physician fee and ASC facility fee reimbursement rate finalized by CMS for 2022 and 2023 for procedures utilizing the Company’s iStent family of products and its impact on our U.S. combo-cataract glaucoma revenue; our ability to continue to generate sales of our commercialized products and develop and commercialize additional products; our dependence on a limited number of third-party suppliers, some of which are single-source, for components of our products; the occurrence of a crippling accident, natural disaster, or other disruption at our primary facility, which may materially affect our manufacturing capacity and operations; securing or maintaining adequate coverage or reimbursement by third-party payors for procedures using the iStent, the iStent inject W, iAccess, iPRIME, iStent infinite, iDose TR, our corneal cross-linking products or other products in development; our ability to properly train, and gain acceptance and trust from ophthalmic surgeons in the use of our products; our ability to compete effectively in the medical device industry and against current and future technologies (including MIGS technologies); our compliance with federal, state and foreign laws and regulations for the approval and sale and marketing of our products and of our manufacturing processes; the lengthy and expensive clinical trial process and the uncertainty of timing and outcomes from any particular clinical trial or regulatory approval processes; the risk of recalls or serious safety issues with our products and the uncertainty of patient outcomes; our ability to protect, and the expense and time-consuming nature of protecting our intellectual property against third parties and competitors and the impact of any claims against us for infringement or misappropriation of third party intellectual property rights and any related litigation; and our ability to service our indebtedness. These and other known risks, uncertainties and factors are described in detail under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (SEC), including in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which is expected to be filed with the SEC by May 10, 2024. Our filings with the SEC are available in the Investor Section of our website at www.glaukos.com or at www.sec.gov. In addition, information about the risks and benefits of our products is available on our website at www.glaukos.com. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on the forward-looking statements in this press release, which speak only as of the date hereof. We do not undertake any obligation to update, amend or clarify these forward-looking statements whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

Statement Regarding Use of Non-GAAP Financial Measures

To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses certain non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company's industry to enhance comparability of the Company's financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the term "Non-GAAP" to exclude external acquisition-related costs incurred to effect a business combination; amortization of intangible assets acquired in a business combination, asset purchase transaction or other contractual relationship; impairment of goodwill and intangible assets; certain in-process R&D charges; fair value adjustments to contingent consideration liabilities and pre-acquisition contingencies arising from a business combination; integration and transition costs related to business combinations; fair market value adjustments to inventories acquired in a business combination or asset purchase transaction; restructuring charges, duplicative operating expenses, or asset write-offs (or reversals) associated with exiting or significantly downsizing a business; gain or loss from the sale of a business; gain or loss on the mark-to-market adjustment, impairment, or sale of long-term investments; mark-to-market adjustments on derivative instruments that hedge income or expense exposures in a future period; significant legal litigation costs and/or settlement expenses or proceeds legal and other associated expenses that are both unusual and significant related to governmental or internal inquiries; and significant discrete income and other tax adjustments related to transactions as well as changes in estimated acquisition-date tax effects associated with business combinations, and the impact from implementation of tax law changes and settlements. See “GAAP to Non-GAAP Reconciliations” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure.

In addition, in order to remove the impact of fluctuations in foreign currency exchange rates, the Company also presents certain net sales information on a constant currency basis, which represents the outcome that would have resulted had exchange rates in the current period been the same as the average exchange rates in effect in the comparable prior period. See “Reported Sales vs. Prior Periods” for a presentation of certain net sales information on a reported, GAAP and a constant currency basis.

GLAUKOS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
 
 
Three Months Ended
March 31,
 

2024

2023

Net sales

$

85,622

 

$

73,899

 

Cost of sales

 

20,258

 

 

18,071

 

Gross profit

 

65,364

 

 

55,828

 

Operating expenses:
Selling, general and administrative

 

61,975

 

 

53,650

 

Research and development

 

30,726

 

 

35,171

 

Acquired in-process research and development

 

11,729

 

 

-

 

Total operating expenses

 

104,430

 

 

88,821

 

Loss from operations

 

(39,066

)

 

(32,993

)

Non-operating expense:
Interest income

 

3,083

 

 

1,648

 

Interest expense

 

(3,450

)

 

(3,408

)

Other (expense) income, net

 

(1,028

)

 

528

 

Total non-operating expense

 

(1,395

)

 

(1,232

)

Loss before taxes

 

(40,461

)

 

(34,225

)

Income tax provision

 

377

 

 

401

 

Net loss

$

(40,838

)

$

(34,626

)

 
Basic and diluted net loss per share

$

(0.82

)

$

(0.72

)

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

 

49,580

 

 

47,881

 

GLAUKOS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
 

March 31,

December 31,

2024

2023

(unaudited)

Assets
Current assets:
Cash and cash equivalents

$

42,495

 

$

93,467

 

Short-term investments

 

230,365

 

 

201,964

 

Accounts receivable, net

 

46,545

 

 

39,850

 

Inventory

 

50,185

 

 

41,986

 

Prepaid expenses and other current assets

 

19,020

 

 

18,194

 

Total current assets

 

388,610

 

 

395,461

 

Restricted cash

 

5,856

 

 

5,856

 

Property and equipment, net

 

101,858

 

 

103,212

 

Operating lease right-of-use asset

 

26,683

 

 

27,146

 

Finance lease right-of-use asset

 

43,575

 

 

44,180

 

Intangible assets, net

 

281,919

 

 

282,956

 

Goodwill

 

66,134

 

 

66,134

 

Deposits and other assets

 

18,703

 

 

15,469

 

Total assets

$

933,338

 

$

940,414

 

 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable

$

12,752

 

$

13,440

 

Accrued liabilities

 

59,486

 

 

60,574

 

Total current liabilities

 

72,238

 

 

74,014

 

Convertible senior notes

 

283,117

 

 

282,773

 

Operating lease liability

 

30,110

 

 

30,427

 

Finance lease liability

 

70,289

 

 

70,538

 

Deferred tax liability, net

 

7,144

 

 

7,144

 

Other liabilities

 

19,710

 

 

13,752

 

Total liabilities

 

482,608

 

 

478,648

 

 
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding

 

-

 

 

-

 

Common stock, $0.001 par value; 150,000 shares authorized; 49,875 and 49,148 shares issued and 49,847 and 49,120 shares outstanding as of March 31, 2024 and December 31, 2023, respectively

 

50

 

 

49

 

Additional paid-in capital

 

1,089,280

 

 

1,059,751

 

Accumulated other comprehensive income (loss)

 

1,437

 

 

1,165

 

Accumulated deficit

 

(639,905

)

 

(599,067

)

Less treasury stock (28 shares as of March 31, 2024 and December 31, 2023

 

(132

)

 

(132

)

Total stockholders' equity

 

450,730

 

 

461,766

 

Total liabilities and stockholders' equity

$

933,338

 

$

940,414

 

GLAUKOS CORPORATION
GAAP to Non-GAAP Reconciliations
(in thousands, except per share amounts and percentage data)
(unaudited)
 
Q1 2024 Q1 2023
 
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
 
Cost of sales

$

20,258

 

$

(5,523

)

(a)

$

14,735

 

$

18,071

 

$

(5,523

)

(a)

$

12,548

 

 
Gross Margin

 

76.3

%

 

6.5

%

 

82.8

%

 

75.5

%

 

7.5

%

 

83.0

%

 
Operating expenses:
Selling, general and administrative

$

61,975

 

$

(705

)

(b)

$

61,270

 

$

53,650

 

$

(705

)

(b)

$

52,945

 

 
Loss from operations

$

(39,066

)

$

6,228

 

$

(32,838

)

$

(32,993

)

$

6,228

 

$

(26,765

)

 
Net loss

$

(40,838

)

$

6,228

 

(c)

$

(34,610

)

$

(34,626

)

$

6,228

 

(c)

$

(28,398

)

 
Basic and diluted net loss per share

$

(0.82

)

$

0.12

 

$

(0.70

)

$

(0.72

)

$

0.13

 

$

(0.59

)

 
(a) Cost of sales adjustments related to the acquisition of Avedro, Inc. (Avedro) for amortization of developed technology intangible assets of $5.5 million in Q1 2024 and Q1 2023.
(b) Avedro acquisition-related expenses for amortization expense of customer relationship intangible assets of $0.7 million in Q1 2024 and Q1 2023.
(c) Includes total tax effect for non-GAAP pre-tax adjustments. For non-GAAP adjustments associated with the U.S., the tax effect is $0 given the Company's U.S. taxable loss positions in both 2024 and 2023.
 
Reported Sales vs. Prior Periods (in thousands)
Year-over-Year Percent Change Quarter-over-Quarter Percent Change

1Q 2024

1Q 2023

4Q 2023

Reported Operations (1) Currency (2) Reported Operations (1) Currency (2)
 
International Glaucoma

$

25,238

$

21,118

$

21,857

19.5

%

21.4

%

(1.9

%)

15.5

%

14.5

%

1.0

%

 
Total Net Sales

$

85,622

$

73,899

$

82,365

15.9

%

16.4

%

(0.5

%)

4.0

%

3.7

%

0.3

%

(1) Operational growth excludes the effect of translational currency
(2) Calculated by converting the current period numbers using the prior period’s average foreign exchange rates

 

Chris Lewis Vice President, Investor Relations & Corporate Affairs (949) 481-0510 clewis@glaukos.com

Source: Glaukos Corporation

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