TransMedics ( NASDAQ: TMDX ) stock fell ~4% Aug. 2 after the CEO noted that the company intends to be cautious in its estimates, despite having raised its FY22 revenue outlook.
Q2 net loss widened to -$11.52M, compared to -$10.67M in the year ago period.
However, net revenues grew +151% Y/Y to $20.52M, beating analysts estimates. The company said the growth was mainly due to increase in commercial sales of OCS Heart and OCS Liver systems in the U.S. Transplant centers use of the National OCS Program (NOP) drove 84% of total U.S. revenue.
"We look forward to further broadening our NOP infrastructure and resources with the goal to maximize our coverage capacity and drive significant growth in transplant procedures in the US and around the world over the next several years," said President, and CEO Waleed Hassanein.
TransMedics added that it signed a new $60M five-year loan agreement with CIBC. Part of proceeds were used to repay an existing $35M credit facility with OrbiMed Advisors after which the company had net proceeds of $23M in cash.
Operating expenses increased to $24.1M, compared to $15.46M in Q1 2021, mainly due to increased investment in NOP, OCS platform, and in general commercial efforts and corporate infrastructure, the company said in its Aug. 1 earnings release.
As of June 30, cash, cash equivalents and marketable securities were $58.1M, exclusive of net proceeds from the new debt financing.
Outlook :
Answering to a query on concerns over guidance Hassanein said , "The rapid growth and acceleration in utilizing our finished goods inventory have really put a lot of challenges in our ability to continue to beef up that inventory. So that is something we're experiencing today. The other thing that we're experiencing today is our ability to cover many cases when finding enough air transport charter flights to be able to cover many cases in the same evening."
Hassanein added that, "So we want it to be prudent, we want it to be cautious, we want it to be thoughtful in our estimates. But that's as we see it today. We will continue to look at the guidance, we will continue to refine the guidance as we continue to execute throughout this year."
TransMedics raised its full year 2022 net revenue outlook and now expects it to be in the range of $67M to $75M, compared to prior estimate of $59M to $65M, representing Y/Y growth of 121% to 148%. Consensus Revenue Estimate for 2022 is $70.53M.
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TransMedics stock dips as CEO mulls "cautious" approach in guidance despite raised FY22 outlook