Outset Medical ( NASDAQ: OM ), a MedTech company focused on dialysis, climbed ~39% in the morning hours Wednesday after revising its full-year outlook to a level above the Street forecasts on the back of better-than- expected revenue for Q3 2022.
For 2022, Outset Medical ( OM ) now expects $111M – $113M in revenue, ahead of ~$108.0 in the consensus and up from $105M – $110M in the previous forecast.
The updated guidance comes after the company witnessed a ~6% YoY growth in Q3 2022 when its net revenue reached $27.8M, implying a ~11% rise from the preceding quarter.
However, Outset Medical ( OM ) reported $40.8M of net loss for the period with a ~34% YoY rise as operating expenses climbed ~37% YoY to $45.3, including sales and marketing expenses of $22.3M, which climbed ~42% YoY.
While gross margin improved to ~16% from ~11% in the prior year quarter, cash and cash equivalents dropped ~65% from 2021 year-end to $63.9M.
Chief Executive Leslie Trigg noted that the demand for the company’s Tablo Hemodialysis System remained strong despite the ongoing staffing and inflationary pressures faced by care providers.
“Our third quarter results reflect the value Tablo is delivering in both the acute and home settings, with console shipments exceeding our initial expectations,” she said.
Dialysis providers Fresenius Medical Care ( FMS ) and DaVita ( DVA ) have both slashed full-year guidance with their recent quarterly results.
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Outset Medical adds 39% after setting guidance ahead of consensus