Establishment Labs(US:ESTA)2023-11-07 16:00Revenue Performance - Revenue for the nine months ended September 30, 2023, was $133.6 million, an increase of $15.7 million or 13.3% compared to $117.9 million in the same period of 2022[199] - Revenue for the three months ended September 30, 2023, was $38.5 million, a slight increase from $38.2 million in the same period of 2022[227] - The Motiva breast implants accounted for over 96% of total revenues for the nine months ended September 30, 2023[211] - The first and second quarters of 2023 resulted in record quarterly revenue, driven by strong demand in the EMEA and Asia-Pacific regions[226] Net Losses and Financial Position - Net losses for the nine months ended September 30, 2023, were $58.0 million, a slight improvement from $61.6 million in the same period of 2022[199] - The net loss for the nine months ended September 30, 2023, was $58.0 million, with significant contributions from changes in operating assets and liabilities[256] - As of September 30, 2023, the accumulated deficit was $339.6 million, with a cash balance of $52.2 million[199] - As of September 30, 2023, the company had cash of $52.2 million, down from $66.4 million at the end of 2022[251] Operating Expenses - Total operating expenses increased by $10.5 million, or 28.7%, to $47.1 million for the three months ended September 30, 2023, compared to $36.6 million in 2022[232][233] - SG&A expenses rose by $8.7 million, or 27.8%, to $40.0 million for the three months ended September 30, 2023, primarily due to increased sales and marketing costs[233] - R&D expenses increased by $1.8 million, or 34.0%, to $7.1 million for the three months ended September 30, 2023, mainly due to higher personnel costs[234] - Total operating expenses for the nine months ended September 30, 2023, were $129.3 million, up from $104.9 million in 2022[243] Cash Flow and Financing Activities - The company reported a net cash used in operating activities of $80.4 million for the nine months ended September 30, 2023, compared to $38.2 million for the same period in 2022[256][257] - Net cash used in investing activities was $19.9 million for the nine months ended September 30, 2023, primarily for capital expenditures related to a new manufacturing facility, compared to $24.4 million in the same period of 2022[259][260] - The company generated $86.2 million in net cash from financing activities for the nine months ended September 30, 2023, mainly from the issuance of common shares, compared to $75.3 million in the same period of 2022[261][262] - The company issued 1,100,000 common shares at a public offering price of $71.50 per share, raising approximately $84.6 million in net proceeds[202] Manufacturing and Product Development - The FDA granted 510(k) clearance for the Motiva Flora SmoothSilk Tissue Expander in October 2023, and the company launched Zen, a next-generation passive RFID technology[200] - The company is expanding manufacturing facilities in Costa Rica, with an estimated $48 million in cash expenditures for the first phase, which will increase manufacturing capacity by approximately 730,000 units per year[208] - Cash paid for capital expenditures on construction in progress related to the new manufacturing facility was $12.3 million for the nine months ended September 30, 2023[259] Future Outlook - The company expects to continue incurring losses in the near term as it invests in sales growth and research and development[209] - The current global macroeconomic environment remains complex, with elevated inflation and interest rates impacting demand for products in the third quarter of 2023[226] - The company anticipates future capital requirements will depend on various factors, including market adoption of products and regulatory activities[254] Accounting Policies - The company has not made any material changes to its critical accounting policies as disclosed in its Annual Report on Form 10-K[267]