BIOLASE(US:BIOL)2022-03-17 22:44Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $12.4 million, representing 46% growth year-over-year, and finished 2021 with total revenue of $39.2 million, up 72% year-over-year [9][21] - Gross margin improved significantly to 40%, a 2,100 basis points expansion year-over-year, reflecting increased sales and favorable absorption of fixed expenses [24] - GAAP net loss for the quarter was $5.3 million or $0.03 per share, compared to a net loss of $6.1 million or $0.07 per share for the fourth quarter of 2020 [26] Business Line Data and Key Metrics Changes - US laser system sales increased 39% compared to 2020 and 61% compared to 2019, while US consumable sales increased 40% compared to 2020 and 75% compared to 2019 [22] - International laser system sales increased 87% compared to 2020 but were down 11% compared to 2019, and international consumable sales increased 29% compared to 2020 and 61% compared to 2019 [22] Market Data and Key Metrics Changes - BIOLASE owns approximately 60% of the all-tissue laser dental market, but the penetration rate of dental lasers in the overall dental market is only about 7% in the US and less than 2% worldwide [10] - Each 1% increase in adoption of all-tissue laser technology in the US could equal $50 million in additional revenue for BIOLASE, assuming the same 60% historical market share [10] Company Strategy and Development Direction - The company has a 3-pronged growth strategy focusing on dental specialists, general practitioners, and corporate dentists to drive market penetration [11][16] - The first prong involves forming specialist academies to increase awareness among dental specialists, which has resulted in at least a third of total US Waterlase revenue coming from specialists [12] - The second prong includes the Waterlase exclusive trial program, which allows general practitioners to trial the laser at no cost, with a goal of increasing the win rate for sales [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable and profitable revenue growth in 2022 and beyond, citing a well-developed roadmap for growth [20][56] - The company is forecasting revenue for the first quarter of 2022 to exceed $9 million, representing growth of at least 11% year-over-year, and anticipates a minimum of 10% revenue increase for the full year [28] Other Important Information - The company plans to ask shareholders for approval of a reverse stock split to meet NASDAQ listing requirements and attract more institutional investors [30][31] - Management acknowledged inflationary pressures impacting costs but decided to hold pricing firm in 2022 to accelerate laser adoption in dentistry [46] Q&A Session Summary Question: Is the company still considering a reverse stock split? - Yes, the company plans to ask shareholders for approval of a reverse stock split to achieve the minimum stock price required by NASDAQ [30][31] Question: What are the company's plans for the next five years and strategy to increase revenue? - The company believes it has a large market opportunity and a well-developed roadmap for growth leveraging its product offerings, with a 3-pronged growth plan already generating positive results [32] Question: What is the plan to increase shareholder returns? - The company plans to execute its growth plan to increase penetration of laser technology in the dental market, expecting profitability by the end of 2023 [33] Question: How has access to dental offices been affected by the Omicron wave? - Access to dental offices has improved, and while there were some cancellations in January and February, the company is back on track [35] Question: How was the guidance for 2022 determined? - The guidance considers the potential contribution from EdgePRO and is somewhat conservative due to current global events and inflation [38] Question: What is the company's strategy regarding dental service organizations (DSOs)? - The company is working with several DSOs, focusing on retraining and identifying practices that previously used legacy lasers [50]