Silk Road Medical Inc (SILK) Reports 19% Revenue Growth in Q3 2023
Q3 2023 revenue increased by 19% year-over-year to $44.4 million.
Gross margin declined slightly to 73% in Q3 2023 from 75% in Q3 2022.
Operating expenses rose by 24% due to sales team expansion and commercial efforts.
Net loss widened to $12.8 million, or $0.33 per share, in Q3 2023.
On November 8, 2023, Silk Road Medical Inc (NASDAQ:SILK) released its financial results for the third quarter ended September 30, 2023. The company, known for its innovative approach to reducing the risk of stroke through its TransCarotid Artery Revascularization (TCAR) procedure, reported a significant revenue increase, driven primarily by the growing adoption of TCAR.
Revenue and Gross Profit
Revenue for the third quarter stood at $44.4 million, marking a 19% increase from the third quarter of 2022. This growth is attributed to the increased adoption of the company's TCAR procedure. Despite this positive trend, gross profit experienced a slight dip in margins from 75% to 73% year-over-year, resulting from a revaluation of standard costs in the prior year and higher manufacturing costs associated with the operation of two manufacturing facilities.
Operating Expenses and Net Loss
Operating expenses for the quarter increased to $46.1 million, up 24% from the same period last year. This rise was primarily due to the continued expansion of the sales team and commercial efforts. Consequently, the net loss for the quarter widened to $12.8 million, or $0.33 per share, compared to a loss of $10.3 million, or $0.29 per share, in the third quarter of 2022.
Balance Sheet and Financial Guidance
The balance sheet remains robust with cash, cash equivalents, and investments totaling $197.2 million as of September 30, 2023. Looking ahead, Silk Road Medical projects full-year 2023 revenue to be between $170 million and $174 million, which would represent a growth of 23% to 26% over the previous year.
Leadership and Future Outlook
Jack Lasersohn, Chairman of the Board of Directors, expressed enthusiasm about the appointment of Chas McKhann as the new CEO, highlighting his proven leadership in scaling medical device businesses.
Chas is a skilled and experienced leader with a track record of effectively building and scaling medical device businesses into underpenetrated markets. We believe he is the right leader to leverage our strong infrastructure, skilled commercial team, and substantial body of clinical evidence to drive further TCAR adoption.
Conference Call and Additional Information
Silk Road Medical will host a conference call to discuss the third quarter 2023 financial results. Interested parties can register for the call and access the live and replay version of the webcast at the company's investor relations website.
For more detailed financial data and insights into Silk Road Medical's performance, investors and stakeholders are encouraged to review the full earnings release and the company's filings with the U.S. Securities and Exchange Commission, including the quarterly report on Form 10-Q filed on November 8, 2023.
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