Axonics(AXNX) - 2022 Q3 - Quarterly Report

Financial Performance - Net revenue for the three months ended September 30, 2022, was $70.384 million, a 50.0% increase from $46.913 million in the same period of 2021[13] - Gross profit for the three months ended September 30, 2022, was $51.260 million, compared to $31.194 million in the prior year, reflecting a gross margin improvement[13] - The net loss for the three months ended September 30, 2022, was $16.252 million, slightly improved from a net loss of $17.250 million in the same quarter of 2021[13] - The company reported a comprehensive loss of $28.309 million for the three months ended September 30, 2022, compared to a comprehensive loss of $22.388 million in the same period of 2021[13] - The company reported a net loss of $60.363 million for the nine months ended September 30, 2022, compared to a net loss of $64.901 million for the same period in 2021[21] - Total net revenue for the nine months ended September 30, 2022, was $187.8 million, a 47.7% increase from $127.2 million in the same period of 2021[35] Assets and Liabilities - Total current assets increased to $449.361 million as of September 30, 2022, up from $321.317 million at December 31, 2021, representing a 40.0% growth[9] - Total liabilities rose to $82.760 million as of September 30, 2022, compared to $65.507 million at December 31, 2021, indicating a 26.3% increase[10] - Cash and cash equivalents increased to $241.331 million as of September 30, 2022, from $220.878 million at December 31, 2021, reflecting a 9.0% increase[9] - The total stockholders' equity as of September 30, 2022, was $549.518 million, up from $482.438 million at December 31, 2021, representing a 13.9% increase[10] - The company had cash, cash equivalents, and short-term investments of $350.0 million as of September 30, 2022, with no material exposure to interest rate changes[152] Expenses - Research and development expenses for the three months ended September 30, 2022, were $7.936 million, down from $8.648 million in the prior year, showing an 8.2% decrease[13] - The company experienced a depreciation and amortization expense of $8.841 million for the nine months ended September 30, 2022, compared to $6.483 million for the same period in 2021[21] - The company’s stock-based compensation expense increased to $23.261 million for the nine months ended September 30, 2022, from $18.320 million in the same period of 2021[21] - Advertising expenses totaled $6.0 million and $15.5 million for the three and nine months ended September 30, 2022, respectively, compared to $2.6 million and $5.5 million for the same periods in 2021, representing an increase of 130.8% and 181.8%[63] Inventory and Assets - As of September 30, 2022, the company reported $34.1 million in finished goods inventory, $5.7 million in work-in-process inventory, and $18.0 million in raw materials inventory, net of reserves[51] - The carrying amount of goodwill decreased from $105.5 million as of December 31, 2021, to $86.9 million as of September 30, 2022, primarily due to foreign currency translation adjustments[98] - Total intangible assets as of September 30, 2022, were valued at $81.8 million, down from $106.5 million as of December 31, 2021[100] Financing and Capital - The company generated $128.498 million in proceeds from a follow-on public offering completed on August 5, 2022, at an offering price of $63.85 per share[26] - The Company incurred net losses of $60.4 million for the nine months ended September 30, 2022, compared to $64.9 million for the same period in 2021, with an accumulated deficit of $374.9 million as of September 30, 2022[29] - The Company may need to raise additional financing in the future, which could lead to dilution for existing stockholders or unfavorable terms[29] Operational Insights - The ongoing COVID-19 pandemic has adversely affected the Company's business, particularly through the cancellation or delay of elective procedures, which could materially harm revenues[31] - The Company continues to invest significantly in sales and marketing activities to support the commercialization of its products both in the United States and internationally[29] - The company is currently engaged in the Medtronic Litigation, which could materially affect its business and financial position, with a jury trial scheduled for April 2023[80] Future Outlook - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[168] - New product launches are anticipated to drive future growth, with the introduction of Product X expected to generate an additional $D million in revenue[166] - Market expansion efforts are underway, with plans to enter the European market by Q1 of next year, targeting an additional $F million in revenue[168] - The management team expressed confidence in achieving long-term growth targets, emphasizing a commitment to innovation and market leadership[166]