electroCore Inc (ECOR) Reports Substantial Sales Growth in Q3 2023
electroCore Inc (NASDAQ:ECOR) announces a significant increase in Q3 2023 net sales, reaching $4.5 million, up approximately 128% from Q3 2022.
Full-year 2023 revenue guidance has been raised to $15.0 million - $15.5 million, reflecting the company's strong performance.
Despite increased sales, the company reported a GAAP net loss of $4.0 million for Q3 2023, an improvement from the $5.5 million net loss in Q3 2022.
Adjusted EBITDA net loss for Q3 2023 was $3.0 million, compared to a net loss of $4.8 million in the same quarter of the previous year.
On November 8, 2023, electroCore Inc (NASDAQ:ECOR), a commercial-stage bioelectronic medicine company, released its financial results for the third quarter of 2023. The company reported record net sales of $4.5 million for the quarter, marking a substantial increase of approximately 128% compared to the third quarter of 2022. This growth is attributed to increased prescription revenue for its gammaCore device within the Department of Veteran Affairs and Department of Defense, as well as from international markets, and continued sales of its wellness products, Truvaga and TAC-STIM.
Financial Performance Overview
electroCore's gross profit for Q3 2023 stood at $3.8 million with a gross margin of 85%, slightly down from the 87% gross margin in Q3 2022. Total operating expenses for the quarter were approximately $8.0 million, up from $7.3 million in the same period last year. The company managed to reduce its research and development expenses to $1.2 million, down from $1.6 million in Q3 2022, as a result of cost-cutting measures. However, selling, general, and administrative expenses increased to $6.7 million, up from $5.7 million, primarily due to higher variable selling and marketing costs associated with the increase in net sales.
The GAAP net loss for the quarter was $4.0 million, showing an improvement over the $5.5 million net loss in Q3 2022. The adjusted EBITDA net loss was also reduced to $3.0 million from $4.8 million in the prior year's quarter. Cash, cash equivalents, and restricted cash as of September 30, 2023, totaled approximately $13.7 million, down from $18.0 million as of December 31, 2022.
Revenue Streams and Outlook
The detailed financial tables provided by electroCore break down the revenue streams, showing significant growth across various channels. The Rx gammaCore sales to the Department of Veteran Affairs and Department of Defense were particularly strong, with a 135% increase year-over-year for the three months ended September 30, 2023. The company's performance has led to an increased revenue guidance for the full year 2023, now expected to be between $15.0 million and $15.5 million.
Conference Call and Webcast Details
electroCore's management hosted a conference call and webcast on November 8, 2023, to discuss the Q3 2023 financial results and provide an operational update. The archived webcast is available on the "Investors" section of the companys website at www.electrocore.com.
As electroCore Inc (NASDAQ:ECOR) continues to navigate the market with its innovative bioelectronic medicine and wellness products, the company's latest financial results indicate a strong trajectory in sales growth. Investors and stakeholders are encouraged to review the full details of the earnings report and listen to the webcast for a comprehensive understanding of the company's financial health and strategic direction.
For further information, investors may contact electroCore's Investor Relations at investors@electrocore.com.
Explore the complete 8-K earnings release (here) from electroCore Inc for further details.
This article first appeared on GuruFocus.
