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Inari Medical Reports Second Quarter 2022 Financial Results

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Inari Medical, Inc.
Inari Medical, Inc.

IRVINE, Calif., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today reported financial results for its second quarter ended June 30, 2022.

Second Quarter Revenue and Business Highlights

  • Generated revenue of $92.7 million in the second quarter of 2022, up 7% sequentially from the first quarter, and 46% over the same quarter last year.

  • Accelerated the expansion of our US commercial footprint, finishing the quarter with over 270 territories, just shy of our full year target.

  • Announced FDA clearance and limited market release of two new products, one of which targets patients outside of our core TAM.

  • Ended the quarter with $330.5 million in cash, cash equivalents and short-term investments.

“We continue to execute crisply across all of our growth drivers despite the ongoing challenges to the med tech operating environment”, said Bill Hoffman, CEO of Inari Medical. “We produced robust revenue growth, hired our largest class of new sales professionals and initiated the limited market release of two new products, including one that targets patients beyond our core TAM. We remain committed to our mission, and to ideas bigger and more important than just business.   We are thankful for your support of our work.”

Second Quarter 2022 Financial Results

Revenue was $92.7 million for the second quarter of 2022, compared to $86.8 million for the prior quarter and $63.5 million for the second quarter of 2021. The increase over prior periods was driven by continued U.S. commercial expansion and new product introductions.

Gross profit was $82.4 million for the second quarter of 2022, compared to $58.6 million for the same period of 2021. Gross margin was 88.8% for the second quarter of 2022, compared to 92.4% for the same period in the prior year, lower primarily due to the move to our larger production facility in the fourth quarter of 2021.

Operating expenses for the second quarter of 2022 were $91.7 million, compared to $54.5 million for the second quarter of 2021. The increase was mainly driven by personnel-related expenses as we increased headcount to fund the expansion of the commercial, research and development, clinical, and support organizations.

Net loss was $10.2 million for the second quarter of 2022 and net loss per share was $0.19 on a weighted-average basic and diluted share count of 53.2 million, compared to a net income of $4.1 million and a net income per share of $0.08 and $0.07 on a weighted-average basic share count of 49.7 million and diluted share count of 55.6 million, respectively, in the same period of the prior year.

Full-Year 2022 Revenue Guidance

For the full year 2022, we are reaffirming our revenue guidance range of $360 million to $370 million.

Webcast and Conference Call Information

Inari Medical will host a conference call to discuss the second quarter 2022 financial results after market close on Wednesday, August 3, 2022 at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The conference call can be accessed live by registering here.

About Inari Medical, Inc.

Inari Medical, Inc. is a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases. Our current product offering consists of two minimally invasive, novel catheter-based mechanical thrombectomy devices that are designed to remove large clots from large vessels and eliminate the need for thrombolytic drugs. The company purpose-built its products for the specific characteristics of the venous system and the treatment of the two distinct manifestations of venous thromboembolism, or VTE: deep vein thrombosis and pulmonary embolism. The ClotTriever system is 510(k)-cleared by FDA and CE marked for the non-surgical removal of clot from peripheral blood vessels, including for the use in the treatment of deep vein thrombosis. The FlowTriever system is 510(k)-cleared by FDA and CE marked for the non-surgical removal of clot from peripheral blood vessels, including for the use in the treatment of pulmonary embolism and clot in transit in the right atrium.

Forward Looking Statements

Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include estimated full year 2022 revenue, and are based on Inari’s current expectations, forecasts, and assumptions, are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2021, and in its other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.

Investor Contact:

ICR Westwicke
Caroline Corner
Phone +1-415-202-5678
caroline.corner@westwicke.com

INARI MEDICAL, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)
(unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

92,744

 

 

$

63,453

 

 

$

179,496

 

 

$

120,850

 

Cost of goods sold

 

 

10,347

 

 

 

4,814

 

 

 

20,314

 

 

 

9,437

 

Gross profit

 

 

82,397

 

 

 

58,639

 

 

 

159,182

 

 

 

111,413

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

18,569

 

 

 

11,630

 

 

 

34,704

 

 

 

19,793

 

Selling, general and administrative

 

 

73,156

 

 

 

42,897

 

 

 

136,888

 

 

 

79,795

 

Total operating expenses

 

 

91,725

 

 

 

54,527

 

 

 

171,592

 

 

 

99,588

 

(Loss) income from operations

 

 

(9,328

)

 

 

4,112

 

 

 

(12,410

)

 

 

11,825

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

214

 

 

 

35

 

 

 

264

 

 

 

103

 

Interest expense

 

 

(73

)

 

 

(74

)

 

 

(146

)

 

 

(147

)

Other income (expense)

 

 

252

 

 

 

7

 

 

 

228

 

 

 

(34

)

Total other income (expenses)

 

 

393

 

 

 

(32

)

 

 

346

 

 

 

(78

)

(Loss) income before income taxes

 

 

(8,935

)

 

 

4,080

 

 

 

(12,064

)

 

 

11,747

 

Provision for income taxes

 

 

1,252

 

 

 

12

 

 

 

1,252

 

 

 

210

 

Net (loss) income

 

$

(10,187

)

 

$

4,068

 

 

$

(13,316

)

 

$

11,537

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(291

)

 

 

57

 

 

 

(408

)

 

 

(123

)

Unrealized (loss) gain on available-for-sale debt securities

 

 

(125

)

 

 

(6

)

 

 

(373

)

 

 

12

 

Total other comprehensive (loss) income

 

 

(416

)

 

 

51

 

 

 

(781

)

 

 

(111

)

Comprehensive (loss) income

 

$

(10,603

)

 

$

4,119

 

 

$

(14,097

)

 

$

11,426

 

Net (loss) income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.19

)

 

$

0.08

 

 

$

(0.26

)

 

$

0.23

 

Diluted

 

$

(0.19

)

 

$

0.07

 

 

$

(0.26

)

 

$

0.21

 

Weighted average common shares used to compute net
(loss) income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

53,183,767

 

 

 

49,669,652

 

 

 

52,075,399

 

 

 

49,512,800

 

Diluted

 

 

53,183,767

 

 

 

55,595,016

 

 

 

52,075,399

 

 

 

55,665,193

 

INARI MEDICAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)

 

 

June 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

79,724

 

 

$

92,752

 

Short-term investments in debt securities

 

 

250,772

 

 

 

83,348

 

Accounts receivable, net

 

 

49,171

 

 

 

42,351

 

Inventories, net

 

 

26,674

 

 

 

21,053

 

Prepaid expenses and other current assets

 

 

4,997

 

 

 

5,694

 

Total current assets

 

 

411,338

 

 

 

245,198

 

Property and equipment, net

 

 

20,076

 

 

 

16,471

 

Operating lease right-of-use assets

 

 

46,653

 

 

 

44,909

 

Deposits and other assets

 

 

6,195

 

 

 

981

 

Long-term investments in debt securities

 

 

 

 

 

3,983

 

Total assets

 

$

484,262

 

 

$

311,542

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

4,748

 

 

$

6,541

 

Payroll-related accruals

 

 

27,695

 

 

 

24,433

 

Accrued expenses and other current liabilities

 

 

8,076

 

 

 

10,737

 

Operating lease liabilities, current portion

 

 

465

 

 

 

802

 

Total current liabilities

 

 

40,984

 

 

 

42,513

 

Operating lease liabilities, noncurrent portion

 

 

28,196

 

 

 

28,404

 

Other long-term liability

 

 

1,304

 

 

 

1,416

 

Total liabilities

 

 

70,484

 

 

 

72,333

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares
issued and outstanding as of June 30, 2022 and December 31, 2021

 

 

 

 

 

 

Common stock, $0.001 par value, 300,000,000 shares
authorized as of June 30, 2022 and December 31, 2021; 53,305,825
and 50,313,452 shares issued and outstanding as of June 30, 2022 and
December 31, 2021, respectively

 

 

53

 

 

 

50

 

Additional paid in capital

 

 

445,807

 

 

 

257,144

 

Accumulated other comprehensive loss

 

 

(1,183

)

 

 

(402

)

Accumulated deficit

 

 

(30,899

)

 

 

(17,583

)

Total stockholders' equity

 

 

413,778

 

 

 

239,209

 

Total liabilities and stockholders' equity

 

$

484,262

 

 

$

311,542