Revance(US:RVNC)2024-05-09 20:33Revenue Performance - For the three months ended March 31, 2024, the company generated $51.7 million in revenue from the sale of its products, with over 7,500 aesthetic accounts[152]. - DAXXIFY net product revenue for the three months ended March 31, 2024, was $22.1 million, a 43% increase from $15.4 million in the same period of 2023[153]. - DAXXIFY aesthetic units sold increased by 105% compared to the same period in 2023 and by 7% compared to the previous quarter[153]. - Revenue from the RHA Collection of dermal fillers for the three months ended March 31, 2024, was $29.6 million, slightly down from $30.3 million in the same period of 2023[154]. - Product revenue for the three months ended March 31, 2024, increased by 13% to $51.719 million compared to $45.658 million in the same period of 2023[160]. - Revenue from the sale of DAXXIFY rose by 44% to $22.149 million, driven by an increase in units sold, despite a reduction in average selling price due to new pricing strategies[160]. Financial Position - As of March 31, 2024, cash, cash equivalents, and short-term investments increased to $277.1 million from $253.9 million as of December 31, 2023, reflecting a $23.2 million increase[187]. - Working capital rose to $300.8 million as of March 31, 2024, compared to $249.6 million at the end of 2023, marking an increase of $51.1 million[185]. - The company’s stockholders' deficit improved to $(98.7) million as of March 31, 2024, from $(151.6) million at the end of 2023, reflecting a decrease of $52.9 million[185]. - Capital resources as of March 31, 2024, amounted to $277.1 million, primarily funded through the sale of common stock and convertible senior notes[211]. - The company has the capacity to sell up to $47.2 million of common stock under the 2022 ATM Agreement as of March 31, 2024[211]. Operating Expenses - Total operating expenses for the three months ended March 31, 2024, increased by 7% to $98.763 million from $92.484 million in the prior year[165]. - Research and development expenses decreased by 18% to $14.393 million compared to $17.532 million in the same period of 2023, primarily due to the FDA approval allowing certain manufacturing costs to be capitalized[173]. - Selling, general and administrative expenses rose by 11% to $68.914 million, reflecting increased sales and marketing activities[169]. - The cost of product revenue (exclusive of amortization) increased by 19% to $14.911 million, primarily due to higher sales volume of DAXXIFY[165]. Cash Flow - For the three months ended March 31, 2024, net cash used in operating activities was $65.9 million, an improvement from $69.5 million in the same period of 2023[188]. - Cash used in operating activities for Q1 2024 included approximately $114 million in expenditures, offset by $49 million in cash receipts from revenue[190]. - The company reported a net cash provided by financing activities of $92.8 million for the three months ended March 31, 2024, compared to $3.3 million in the same period of 2023[188]. Financing Activities - In March 2024, the company completed a follow-on offering, issuing 16.0 million shares at a price of $6.25 per share, resulting in net proceeds of $97.1 million[155]. - The company issued the 2027 Notes with an aggregate principal amount of $287.5 million, bearing interest at 1.75% per year, with a maturity date of February 15, 2027[195]. - The company utilized $28.9 million of the net proceeds from the 2027 Notes to pay for capped call transactions, aimed at reducing potential dilution[200]. - The company sold 3.2 million shares under the 2022 ATM Agreement in 2023 at a weighted average price of $31.90 per share, generating net proceeds of $100.0 million[208]. Business Strategy and Operations - The company commenced a plan to exit the Fintech Platform business in September 2023, with all payment processing activities ending on January 31, 2024[156]. - The exit of the Fintech Platform business is expected to have no material effect on the company's liquidity going forward[157]. - The company began operating under a single reportable segment as of March 31, 2024, following the exit of the Fintech Platform business[158]. - The service revenue from the Fintech Platform is classified as discontinued operations, and prior year figures were reclassified accordingly[159]. - The company anticipates substantial additional financing may be needed in the future to fund operations and achieve business objectives[212]. Future Outlook - The company expects to continue incurring GAAP operating losses for the foreseeable future due to ongoing investments in commercialization, research and development, and regulatory approval[210]. - The company has incurred significant losses since inception and expects to continue incurring GAAP operating losses, with no assurance of achieving profitability[213]. - The company anticipates an increase in research and development expenses as additional clinical trials for DAXXIFY therapeutic indications are conducted[176]. Risk Factors - The company is exposed to market risk primarily due to fluctuations in interest rates, with no material changes in exposure reported for the three months ended March 31, 2024[217]. - There were no material changes in critical accounting policies for the three months ended March 31, 2024, compared to the previous fiscal year[214]. - Contractual obligations remained unchanged as of March 31, 2024, from those reported as of December 31, 2023[215].