Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Outset Medical Reports Second Quarter 2023 Financial Results By: Outset Medical, Inc. via Business Wire August 02, 2023 at 16:05 PM EDT Sequential Revenue Growth of 8%, Ninth Consecutive Quarter of Gross Margin Expansion Announces Shipment Pause of TabloCart with Prefiltration Pending 510(k) Clearance Reiterates 2023 Revenue Range of $144 Million to $150 Million Outset Medical, Inc. (Nasdaq: OM) (“Outset” or the “Company”), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today reported financial results for the second quarter ended June 30, 2023. Recent Highlights Recorded net revenue of $36.0 million in the second quarter, a 44% increase compared to $25.1 million in the second quarter of 2022, and an 8% increase compared to $33.5 million in the first quarter of 2023. Achieved gross margin for the second quarter of 21.4% (22.5% on a non-GAAP basis), compared to 15.1% (15.9% on a non-GAAP basis) in the second quarter of 2022. Initiated the first Tablo home dialysis program with one of the country’s largest health systems with plans to expand to multiple U.S. sites. Achieved the Company’s goal of signing agreements with the majority of U.S. mid-sized dialysis providers, further expanding its reach to patients who choose to dialyze at home. “Our momentum entering 2023 carried through the second quarter, led by the strong demand from hospitals due to the value realized from insourcing dialysis with Tablo,” said Leslie Trigg, Chair and Chief Executive Officer. “As important, Tablo’s unique ease of use and flexibility continues to drive patient interest and demand from home-care providers, including traditional acute-care providers.” The Company also announced it has paused the shipment of TabloCart with Prefiltration, an accessory for the Tablo System, pending the Food and Drug Administration’s clearance of a 510(k) the Company plans to submit later this month. “Since receiving the Warning Letter on July 6, we have made the decision to file a 510(k) for TabloCart with Prefiltration and pause distribution of the product until a 510(k) clearance has been granted,” added Trigg. “As we look ahead to the second half of the year, we expect our strong momentum both in the acute and home end markets to continue to drive the business.” Second Quarter 2023 Financial Results Revenue for the second quarter of 2023 was $36.0 million, representing an increase of 43.8% compared to $25.1 million in the second quarter of 2022. Product revenue was $29.3 million, representing an increase of 49.5% compared to $19.6 million in the second quarter of 2022. Service and other revenue was $6.7 million, representing an increase of 23.4% compared to $5.4 million in the second quarter of 2022. Total gross profit was $7.7 million, compared to $3.8 million for the second quarter of 2022. Total gross margin was 21.4%, compared to 15.1% in the second quarter of 2022. On a non-GAAP basis, gross margin improved to 22.5% from 15.9% in the second quarter of 2022. Product gross profit was $7.1 million, compared to $1.9 million of product gross profit in the second quarter of 2022. Product gross margin was 24.3%, compared to 9.7% in the second quarter of 2022. Service and other gross profit was $0.6 million, compared to $1.9 million of service and other gross profit in the second quarter of 2022. Service and other gross margin was 8.7%, compared to 34.6% in the second quarter of 2022. Operating expenses were $51.2 million, including research and development (R&D) expenses of $14.9 million, sales and marketing (S&M) expenses of $25.0 million, and general and administrative (G&A) expenses of $11.3 million. This compared to operating expenses of $47.5 million, including R&D expenses of $13.5 million, S&M expenses of $23.2 million, and G&A expenses of $10.8 million in the second quarter of 2022. Excluding stock-based compensation expense, non-GAAP operating expenses were $41.5 million, including R&D expenses of $12.1 million, S&M expenses of $21.4 million, and G&A expenses of $8.0 million. Net loss was ($44.0) million, or ($0.90) per share, compared to net loss of ($43.8) million, or ($0.92) per share, for the same period in 2022. On a non-GAAP basis, net loss was ($33.9) million, or ($0.69) per share, compared to non-GAAP net loss of ($36.4) million, or ($0.77) per share for the same period in 2022. Total cash, including restricted cash, cash equivalents and short-term investments, was $226.1 million as of June 30, 2023. Full Year 2023 Financial Guidance Outset reiterated its 2023 revenue guidance range of $144 million to $150 million, and now expects to be at the low end of this range as a result of the shipment pause for TabloCart with Prefiltration. The Company reaffirmed its gross margin guidance for the year to be in the low-20% range, exiting the fourth quarter in the mid-20% range. Webcast and Conference Call Details Outset will host a conference call today, August 2, 2023, at 2:00 p.m. PT / 5:00 p.m. ET to discuss its second quarter 2023 financial results. Those interested in listening to the conference call may do so by registering online. Once registered, participants will receive dial-in numbers and a unique pin to join the call. Participants are encouraged to register more than 15 minutes before the start of the call. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.outsetmedical.com. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial Measures The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company’s financial measures under GAAP include stock-based compensation expense, as listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of this non-cash expense item in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the Appendix A of this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, profitability and outlook; statements regarding the Company’s overall business strategy, plans and objectives of management; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo; continued execution of the Company’s initiatives designed to expand gross margins; our ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise. About Outset Medical, Inc. Outset is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo® Hemodialysis System, FDA cleared for use from the hospital to the home, represents a significant technological advancement that transforms the dialysis experience for patients and operationally simplifies it for providers. Tablo serves as a single enterprise solution that can be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere and by anyone. The integration of water purification and on-demand dialysate production enables Tablo to serve as a dialysis clinic on wheels, with 2-way wireless data transmission and a proprietary data analytics platform powering a new holistic approach to dialysis care. Tablo is a registered trademark of Outset Medical, Inc. Outset Medical, Inc. Condensed Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue: Product revenue $ 29,330 $ 19,621 $ 57,109 $ 45,285 Service and other revenue 6,710 5,436 12,398 10,322 Total revenue 36,040 25,057 69,507 55,607 Cost of revenue: Cost of product revenue (2) 22,212 17,718 43,029 40,828 Cost of service and other revenue 6,125 3,557 12,347 6,555 Total cost of revenue 28,337 21,275 55,376 47,383 Gross profit (1) 7,703 3,782 14,131 8,224 Gross margin (1) 21.4 % 15.1 % 20.3 % 14.8 % Operating expenses: Research and development (2) 14,906 13,521 28,699 24,352 Sales and marketing (2) 24,985 23,198 49,318 43,575 General and administrative (2) 11,290 10,784 23,077 20,493 Total operating expenses 51,181 47,503 101,094 88,420 Loss from operations (43,478 ) (43,721 ) (86,963 ) (80,196 ) Interest income and other income, net 2,668 459 5,316 579 Interest expense (3,103 ) (481 ) (6,045 ) (903 ) Loss before provision for income taxes (43,913 ) (43,743 ) (87,692 ) (80,520 ) Provision for income taxes 133 96 325 211 Net loss $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Net loss per share, basic and diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Shares used in computing net loss per share, basic and diluted 48,951 47,882 49,085 47,686 (1) Gross profit and gross margin by source consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Gross profit Product revenue $ 7,118 $ 1,903 $ 14,080 $ 4,457 Service and other revenue 585 1,879 51 3,767 Total gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Gross margin Product revenue 24.3 % 9.7 % 24.7 % 9.8 % Service and other revenue 8.7 % 34.6 % 0.4 % 36.5 % Total gross margin 21.4 % 15.1 % 20.3 % 14.8 % (2) Include stock-based compensation expense as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cost of revenue $ 403 $ 190 $ 761 $ 283 Research and development 2,824 1,808 5,439 2,966 Sales and marketing 3,545 2,864 6,143 4,570 General and administrative 3,333 2,552 6,300 4,601 Total stock-based compensation expense $ 10,105 $ 7,414 $ 18,643 $ 12,420 Outset Medical, Inc. Condensed Balance Sheets (in thousands, except per share amounts) June 30, December 31, 2023 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 36,388 $ 73,222 Short-term investments 186,403 214,280 Accounts receivable, net 36,902 28,070 Inventories 44,495 51,476 Prepaid expenses and other current assets 5,216 6,597 Total current assets 309,404 373,645 Restricted cash 3,329 3,311 Property and equipment, net 14,539 15,876 Operating lease right-of-use assets 6,042 6,117 Other assets 1,128 1,166 Total assets $ 334,442 $ 400,115 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 2,217 $ 603 Accrued compensation and related benefits 17,461 21,519 Accrued expenses and other current liabilities 12,650 16,227 Accrued warranty liability 4,168 3,620 Deferred revenue, current 10,854 8,662 Operating lease liabilities, current 1,474 1,318 Total current liabilities 48,824 51,949 Accrued interest 484 113 Deferred revenue 89 151 Operating lease liabilities 5,308 5,576 Term loan 96,629 96,336 Total liabilities 151,334 154,125 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of June 30, 2023 and December 31, 2022 — — Common stock, $0.001 par value; 300,000 shares authorized as of June 30, 2023 and December 31, 2022; 49,629 and 48,465 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively 50 48 Additional paid-in capital 1,060,418 1,035,456 Accumulated other comprehensive loss (393 ) (564 ) Accumulated deficit (876,967 ) (788,950 ) Total stockholders' equity 183,108 245,990 Total liabilities and stockholders' equity $ 334,442 $ 400,115 Outset Medical, Inc. Condensed Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2023 2022 Net cash used in operating activities $ (72,932 ) $ (76,910 ) Net cash provided by (used in) investing activities 29,796 (34,706 ) Net cash provided by financing activities 6,320 4,765 Net decrease in cash, cash equivalents and restricted cash (36,816 ) (106,851 ) Cash, cash equivalents and restricted cash at beginning of the period 76,533 215,659 Cash, cash equivalents and restricted cash at end of the period (1) $ 39,717 $ 108,808 (1) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): June 30, 2023 2022 Cash and cash equivalents $ 36,388 $ 75,497 Restricted cash 3,329 33,311 Total cash, cash equivalents and restricted cash* $ 39,717 $ 108,808 * The total cash, including restricted cash, cash equivalents and investment securities as of June 30, 2023 was $226.1 million; compared to $295.4 million as of June 30, 2022. Appendix A Outset Medical, Inc. Results of Operations – Non-GAAP (in thousands, except per share amounts) (unaudited) Reconciliation between GAAP and non-GAAP net loss per share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss per share, diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Stock-based compensation expense 0.21 0.15 0.38 0.26 Non-GAAP net loss per share, diluted $ (0.69 ) $ (0.77 ) $ (1.41 ) $ (1.43 ) Reconciliation between GAAP and non-GAAP net loss: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss, diluted $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Stock-based compensation expense 10,105 7,414 18,643 12,420 Non-GAAP net loss, diluted $ (33,941 ) $ (36,425 ) $ (69,374 ) $ (68,311 ) Reconciliation between GAAP and non-GAAP results of operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Stock-based compensation expense 403 190 761 283 Non-GAAP gross profit $ 8,106 $ 3,972 $ 14,892 $ 8,507 GAAP gross margin 21.4 % 15.1 % 20.3 % 14.8 % Stock-based compensation expense 1.1 0.8 1.1 0.5 Non-GAAP gross margin 22.5 % 15.9 % 21.4 % 15.3 % GAAP research and development expense $ 14,906 $ 13,521 $ 28,699 $ 24,352 Stock-based compensation expense (2,824 ) (1,808 ) (5,439 ) (2,966 ) Non-GAAP research and development expense $ 12,082 $ 11,713 $ 23,260 $ 21,386 GAAP sales and marketing expense $ 24,985 $ 23,198 $ 49,318 $ 43,575 Stock-based compensation expense (3,545 ) (2,864 ) (6,143 ) (4,570 ) Non-GAAP sales and marketing expense $ 21,440 $ 20,334 $ 43,175 $ 39,005 GAAP general and administrative expense $ 11,290 $ 10,784 $ 23,077 $ 20,493 Stock-based compensation expense (3,333 ) (2,552 ) (6,300 ) (4,601 ) Non-GAAP general and administrative expense $ 7,957 $ 8,232 $ 16,777 $ 15,892 GAAP total operating expense $ 51,181 $ 47,503 $ 101,094 $ 88,420 Stock-based compensation expense (9,702 ) (7,224 ) (17,882 ) (12,137 ) Non-GAAP total operating expense $ 41,479 $ 40,279 $ 83,212 $ 76,283 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802278579/en/Contacts Investor Contact Jim Mazzola Outset Medical 858-342-8272 jmazzola@outsetmedical.com Media Contact Nicole Shannon Director, Marketing Communications for Outset Medical nshannon@outsetmedical.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Outset Medical Reports Second Quarter 2023 Financial Results By: Outset Medical, Inc. via Business Wire August 02, 2023 at 16:05 PM EDT Sequential Revenue Growth of 8%, Ninth Consecutive Quarter of Gross Margin Expansion Announces Shipment Pause of TabloCart with Prefiltration Pending 510(k) Clearance Reiterates 2023 Revenue Range of $144 Million to $150 Million Outset Medical, Inc. (Nasdaq: OM) (“Outset” or the “Company”), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today reported financial results for the second quarter ended June 30, 2023. Recent Highlights Recorded net revenue of $36.0 million in the second quarter, a 44% increase compared to $25.1 million in the second quarter of 2022, and an 8% increase compared to $33.5 million in the first quarter of 2023. Achieved gross margin for the second quarter of 21.4% (22.5% on a non-GAAP basis), compared to 15.1% (15.9% on a non-GAAP basis) in the second quarter of 2022. Initiated the first Tablo home dialysis program with one of the country’s largest health systems with plans to expand to multiple U.S. sites. Achieved the Company’s goal of signing agreements with the majority of U.S. mid-sized dialysis providers, further expanding its reach to patients who choose to dialyze at home. “Our momentum entering 2023 carried through the second quarter, led by the strong demand from hospitals due to the value realized from insourcing dialysis with Tablo,” said Leslie Trigg, Chair and Chief Executive Officer. “As important, Tablo’s unique ease of use and flexibility continues to drive patient interest and demand from home-care providers, including traditional acute-care providers.” The Company also announced it has paused the shipment of TabloCart with Prefiltration, an accessory for the Tablo System, pending the Food and Drug Administration’s clearance of a 510(k) the Company plans to submit later this month. “Since receiving the Warning Letter on July 6, we have made the decision to file a 510(k) for TabloCart with Prefiltration and pause distribution of the product until a 510(k) clearance has been granted,” added Trigg. “As we look ahead to the second half of the year, we expect our strong momentum both in the acute and home end markets to continue to drive the business.” Second Quarter 2023 Financial Results Revenue for the second quarter of 2023 was $36.0 million, representing an increase of 43.8% compared to $25.1 million in the second quarter of 2022. Product revenue was $29.3 million, representing an increase of 49.5% compared to $19.6 million in the second quarter of 2022. Service and other revenue was $6.7 million, representing an increase of 23.4% compared to $5.4 million in the second quarter of 2022. Total gross profit was $7.7 million, compared to $3.8 million for the second quarter of 2022. Total gross margin was 21.4%, compared to 15.1% in the second quarter of 2022. On a non-GAAP basis, gross margin improved to 22.5% from 15.9% in the second quarter of 2022. Product gross profit was $7.1 million, compared to $1.9 million of product gross profit in the second quarter of 2022. Product gross margin was 24.3%, compared to 9.7% in the second quarter of 2022. Service and other gross profit was $0.6 million, compared to $1.9 million of service and other gross profit in the second quarter of 2022. Service and other gross margin was 8.7%, compared to 34.6% in the second quarter of 2022. Operating expenses were $51.2 million, including research and development (R&D) expenses of $14.9 million, sales and marketing (S&M) expenses of $25.0 million, and general and administrative (G&A) expenses of $11.3 million. This compared to operating expenses of $47.5 million, including R&D expenses of $13.5 million, S&M expenses of $23.2 million, and G&A expenses of $10.8 million in the second quarter of 2022. Excluding stock-based compensation expense, non-GAAP operating expenses were $41.5 million, including R&D expenses of $12.1 million, S&M expenses of $21.4 million, and G&A expenses of $8.0 million. Net loss was ($44.0) million, or ($0.90) per share, compared to net loss of ($43.8) million, or ($0.92) per share, for the same period in 2022. On a non-GAAP basis, net loss was ($33.9) million, or ($0.69) per share, compared to non-GAAP net loss of ($36.4) million, or ($0.77) per share for the same period in 2022. Total cash, including restricted cash, cash equivalents and short-term investments, was $226.1 million as of June 30, 2023. Full Year 2023 Financial Guidance Outset reiterated its 2023 revenue guidance range of $144 million to $150 million, and now expects to be at the low end of this range as a result of the shipment pause for TabloCart with Prefiltration. The Company reaffirmed its gross margin guidance for the year to be in the low-20% range, exiting the fourth quarter in the mid-20% range. Webcast and Conference Call Details Outset will host a conference call today, August 2, 2023, at 2:00 p.m. PT / 5:00 p.m. ET to discuss its second quarter 2023 financial results. Those interested in listening to the conference call may do so by registering online. Once registered, participants will receive dial-in numbers and a unique pin to join the call. Participants are encouraged to register more than 15 minutes before the start of the call. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.outsetmedical.com. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial Measures The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company’s financial measures under GAAP include stock-based compensation expense, as listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of this non-cash expense item in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the Appendix A of this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, profitability and outlook; statements regarding the Company’s overall business strategy, plans and objectives of management; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo; continued execution of the Company’s initiatives designed to expand gross margins; our ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise. About Outset Medical, Inc. Outset is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo® Hemodialysis System, FDA cleared for use from the hospital to the home, represents a significant technological advancement that transforms the dialysis experience for patients and operationally simplifies it for providers. Tablo serves as a single enterprise solution that can be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere and by anyone. The integration of water purification and on-demand dialysate production enables Tablo to serve as a dialysis clinic on wheels, with 2-way wireless data transmission and a proprietary data analytics platform powering a new holistic approach to dialysis care. Tablo is a registered trademark of Outset Medical, Inc. Outset Medical, Inc. Condensed Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue: Product revenue $ 29,330 $ 19,621 $ 57,109 $ 45,285 Service and other revenue 6,710 5,436 12,398 10,322 Total revenue 36,040 25,057 69,507 55,607 Cost of revenue: Cost of product revenue (2) 22,212 17,718 43,029 40,828 Cost of service and other revenue 6,125 3,557 12,347 6,555 Total cost of revenue 28,337 21,275 55,376 47,383 Gross profit (1) 7,703 3,782 14,131 8,224 Gross margin (1) 21.4 % 15.1 % 20.3 % 14.8 % Operating expenses: Research and development (2) 14,906 13,521 28,699 24,352 Sales and marketing (2) 24,985 23,198 49,318 43,575 General and administrative (2) 11,290 10,784 23,077 20,493 Total operating expenses 51,181 47,503 101,094 88,420 Loss from operations (43,478 ) (43,721 ) (86,963 ) (80,196 ) Interest income and other income, net 2,668 459 5,316 579 Interest expense (3,103 ) (481 ) (6,045 ) (903 ) Loss before provision for income taxes (43,913 ) (43,743 ) (87,692 ) (80,520 ) Provision for income taxes 133 96 325 211 Net loss $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Net loss per share, basic and diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Shares used in computing net loss per share, basic and diluted 48,951 47,882 49,085 47,686 (1) Gross profit and gross margin by source consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Gross profit Product revenue $ 7,118 $ 1,903 $ 14,080 $ 4,457 Service and other revenue 585 1,879 51 3,767 Total gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Gross margin Product revenue 24.3 % 9.7 % 24.7 % 9.8 % Service and other revenue 8.7 % 34.6 % 0.4 % 36.5 % Total gross margin 21.4 % 15.1 % 20.3 % 14.8 % (2) Include stock-based compensation expense as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cost of revenue $ 403 $ 190 $ 761 $ 283 Research and development 2,824 1,808 5,439 2,966 Sales and marketing 3,545 2,864 6,143 4,570 General and administrative 3,333 2,552 6,300 4,601 Total stock-based compensation expense $ 10,105 $ 7,414 $ 18,643 $ 12,420 Outset Medical, Inc. Condensed Balance Sheets (in thousands, except per share amounts) June 30, December 31, 2023 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 36,388 $ 73,222 Short-term investments 186,403 214,280 Accounts receivable, net 36,902 28,070 Inventories 44,495 51,476 Prepaid expenses and other current assets 5,216 6,597 Total current assets 309,404 373,645 Restricted cash 3,329 3,311 Property and equipment, net 14,539 15,876 Operating lease right-of-use assets 6,042 6,117 Other assets 1,128 1,166 Total assets $ 334,442 $ 400,115 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 2,217 $ 603 Accrued compensation and related benefits 17,461 21,519 Accrued expenses and other current liabilities 12,650 16,227 Accrued warranty liability 4,168 3,620 Deferred revenue, current 10,854 8,662 Operating lease liabilities, current 1,474 1,318 Total current liabilities 48,824 51,949 Accrued interest 484 113 Deferred revenue 89 151 Operating lease liabilities 5,308 5,576 Term loan 96,629 96,336 Total liabilities 151,334 154,125 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of June 30, 2023 and December 31, 2022 — — Common stock, $0.001 par value; 300,000 shares authorized as of June 30, 2023 and December 31, 2022; 49,629 and 48,465 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively 50 48 Additional paid-in capital 1,060,418 1,035,456 Accumulated other comprehensive loss (393 ) (564 ) Accumulated deficit (876,967 ) (788,950 ) Total stockholders' equity 183,108 245,990 Total liabilities and stockholders' equity $ 334,442 $ 400,115 Outset Medical, Inc. Condensed Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2023 2022 Net cash used in operating activities $ (72,932 ) $ (76,910 ) Net cash provided by (used in) investing activities 29,796 (34,706 ) Net cash provided by financing activities 6,320 4,765 Net decrease in cash, cash equivalents and restricted cash (36,816 ) (106,851 ) Cash, cash equivalents and restricted cash at beginning of the period 76,533 215,659 Cash, cash equivalents and restricted cash at end of the period (1) $ 39,717 $ 108,808 (1) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): June 30, 2023 2022 Cash and cash equivalents $ 36,388 $ 75,497 Restricted cash 3,329 33,311 Total cash, cash equivalents and restricted cash* $ 39,717 $ 108,808 * The total cash, including restricted cash, cash equivalents and investment securities as of June 30, 2023 was $226.1 million; compared to $295.4 million as of June 30, 2022. Appendix A Outset Medical, Inc. Results of Operations – Non-GAAP (in thousands, except per share amounts) (unaudited) Reconciliation between GAAP and non-GAAP net loss per share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss per share, diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Stock-based compensation expense 0.21 0.15 0.38 0.26 Non-GAAP net loss per share, diluted $ (0.69 ) $ (0.77 ) $ (1.41 ) $ (1.43 ) Reconciliation between GAAP and non-GAAP net loss: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss, diluted $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Stock-based compensation expense 10,105 7,414 18,643 12,420 Non-GAAP net loss, diluted $ (33,941 ) $ (36,425 ) $ (69,374 ) $ (68,311 ) Reconciliation between GAAP and non-GAAP results of operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Stock-based compensation expense 403 190 761 283 Non-GAAP gross profit $ 8,106 $ 3,972 $ 14,892 $ 8,507 GAAP gross margin 21.4 % 15.1 % 20.3 % 14.8 % Stock-based compensation expense 1.1 0.8 1.1 0.5 Non-GAAP gross margin 22.5 % 15.9 % 21.4 % 15.3 % GAAP research and development expense $ 14,906 $ 13,521 $ 28,699 $ 24,352 Stock-based compensation expense (2,824 ) (1,808 ) (5,439 ) (2,966 ) Non-GAAP research and development expense $ 12,082 $ 11,713 $ 23,260 $ 21,386 GAAP sales and marketing expense $ 24,985 $ 23,198 $ 49,318 $ 43,575 Stock-based compensation expense (3,545 ) (2,864 ) (6,143 ) (4,570 ) Non-GAAP sales and marketing expense $ 21,440 $ 20,334 $ 43,175 $ 39,005 GAAP general and administrative expense $ 11,290 $ 10,784 $ 23,077 $ 20,493 Stock-based compensation expense (3,333 ) (2,552 ) (6,300 ) (4,601 ) Non-GAAP general and administrative expense $ 7,957 $ 8,232 $ 16,777 $ 15,892 GAAP total operating expense $ 51,181 $ 47,503 $ 101,094 $ 88,420 Stock-based compensation expense (9,702 ) (7,224 ) (17,882 ) (12,137 ) Non-GAAP total operating expense $ 41,479 $ 40,279 $ 83,212 $ 76,283 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802278579/en/Contacts Investor Contact Jim Mazzola Outset Medical 858-342-8272 jmazzola@outsetmedical.com Media Contact Nicole Shannon Director, Marketing Communications for Outset Medical nshannon@outsetmedical.com
Sequential Revenue Growth of 8%, Ninth Consecutive Quarter of Gross Margin Expansion Announces Shipment Pause of TabloCart with Prefiltration Pending 510(k) Clearance Reiterates 2023 Revenue Range of $144 Million to $150 Million
Outset Medical, Inc. (Nasdaq: OM) (“Outset” or the “Company”), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today reported financial results for the second quarter ended June 30, 2023. Recent Highlights Recorded net revenue of $36.0 million in the second quarter, a 44% increase compared to $25.1 million in the second quarter of 2022, and an 8% increase compared to $33.5 million in the first quarter of 2023. Achieved gross margin for the second quarter of 21.4% (22.5% on a non-GAAP basis), compared to 15.1% (15.9% on a non-GAAP basis) in the second quarter of 2022. Initiated the first Tablo home dialysis program with one of the country’s largest health systems with plans to expand to multiple U.S. sites. Achieved the Company’s goal of signing agreements with the majority of U.S. mid-sized dialysis providers, further expanding its reach to patients who choose to dialyze at home. “Our momentum entering 2023 carried through the second quarter, led by the strong demand from hospitals due to the value realized from insourcing dialysis with Tablo,” said Leslie Trigg, Chair and Chief Executive Officer. “As important, Tablo’s unique ease of use and flexibility continues to drive patient interest and demand from home-care providers, including traditional acute-care providers.” The Company also announced it has paused the shipment of TabloCart with Prefiltration, an accessory for the Tablo System, pending the Food and Drug Administration’s clearance of a 510(k) the Company plans to submit later this month. “Since receiving the Warning Letter on July 6, we have made the decision to file a 510(k) for TabloCart with Prefiltration and pause distribution of the product until a 510(k) clearance has been granted,” added Trigg. “As we look ahead to the second half of the year, we expect our strong momentum both in the acute and home end markets to continue to drive the business.” Second Quarter 2023 Financial Results Revenue for the second quarter of 2023 was $36.0 million, representing an increase of 43.8% compared to $25.1 million in the second quarter of 2022. Product revenue was $29.3 million, representing an increase of 49.5% compared to $19.6 million in the second quarter of 2022. Service and other revenue was $6.7 million, representing an increase of 23.4% compared to $5.4 million in the second quarter of 2022. Total gross profit was $7.7 million, compared to $3.8 million for the second quarter of 2022. Total gross margin was 21.4%, compared to 15.1% in the second quarter of 2022. On a non-GAAP basis, gross margin improved to 22.5% from 15.9% in the second quarter of 2022. Product gross profit was $7.1 million, compared to $1.9 million of product gross profit in the second quarter of 2022. Product gross margin was 24.3%, compared to 9.7% in the second quarter of 2022. Service and other gross profit was $0.6 million, compared to $1.9 million of service and other gross profit in the second quarter of 2022. Service and other gross margin was 8.7%, compared to 34.6% in the second quarter of 2022. Operating expenses were $51.2 million, including research and development (R&D) expenses of $14.9 million, sales and marketing (S&M) expenses of $25.0 million, and general and administrative (G&A) expenses of $11.3 million. This compared to operating expenses of $47.5 million, including R&D expenses of $13.5 million, S&M expenses of $23.2 million, and G&A expenses of $10.8 million in the second quarter of 2022. Excluding stock-based compensation expense, non-GAAP operating expenses were $41.5 million, including R&D expenses of $12.1 million, S&M expenses of $21.4 million, and G&A expenses of $8.0 million. Net loss was ($44.0) million, or ($0.90) per share, compared to net loss of ($43.8) million, or ($0.92) per share, for the same period in 2022. On a non-GAAP basis, net loss was ($33.9) million, or ($0.69) per share, compared to non-GAAP net loss of ($36.4) million, or ($0.77) per share for the same period in 2022. Total cash, including restricted cash, cash equivalents and short-term investments, was $226.1 million as of June 30, 2023. Full Year 2023 Financial Guidance Outset reiterated its 2023 revenue guidance range of $144 million to $150 million, and now expects to be at the low end of this range as a result of the shipment pause for TabloCart with Prefiltration. The Company reaffirmed its gross margin guidance for the year to be in the low-20% range, exiting the fourth quarter in the mid-20% range. Webcast and Conference Call Details Outset will host a conference call today, August 2, 2023, at 2:00 p.m. PT / 5:00 p.m. ET to discuss its second quarter 2023 financial results. Those interested in listening to the conference call may do so by registering online. Once registered, participants will receive dial-in numbers and a unique pin to join the call. Participants are encouraged to register more than 15 minutes before the start of the call. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at https://investors.outsetmedical.com. The webcast will be archived on the website following the completion of the call. Use of Non-GAAP Financial Measures The Company may report non-GAAP results for gross profit/loss, gross margin, operating expenses, operating margins, net income/loss, basic and diluted net income/loss per share, other income/loss, and cash flows. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company’s financial measures under GAAP include stock-based compensation expense, as listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release. Management has excluded the effects of this non-cash expense item in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance and period-to-period comparisons. There are limitations related to the use of non-GAAP financial measures because they are not prepared in accordance with GAAP, may exclude significant expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the Appendix A of this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the Company’s possible or assumed future results of operations and financial position, including expectations regarding projected revenues, gross margin, operating expenses, capital expenditures, profitability and outlook; statements regarding the Company’s overall business strategy, plans and objectives of management; the Company’s expectations regarding the market sizes and growth potential for Tablo and the total addressable market opportunities for Tablo; continued execution of the Company’s initiatives designed to expand gross margins; our ability to respond to and resolve any reports, observations or other actions by the Food and Drug Administration or other regulators in a timely and effective manner; as well as the Company’s expectations regarding the impact of macroeconomic factors on the Company, its customers and suppliers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s public filings with the Securities and Exchange Commission, including its latest annual and quarterly reports. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements speak only as of their date and, except to the extent required by law, the Company undertakes no obligation to update these statements, whether as a result of any new information, future developments or otherwise. About Outset Medical, Inc. Outset is a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis. The Tablo® Hemodialysis System, FDA cleared for use from the hospital to the home, represents a significant technological advancement that transforms the dialysis experience for patients and operationally simplifies it for providers. Tablo serves as a single enterprise solution that can be utilized across the continuum of care, allowing dialysis to be delivered anytime, anywhere and by anyone. The integration of water purification and on-demand dialysate production enables Tablo to serve as a dialysis clinic on wheels, with 2-way wireless data transmission and a proprietary data analytics platform powering a new holistic approach to dialysis care. Tablo is a registered trademark of Outset Medical, Inc. Outset Medical, Inc. Condensed Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue: Product revenue $ 29,330 $ 19,621 $ 57,109 $ 45,285 Service and other revenue 6,710 5,436 12,398 10,322 Total revenue 36,040 25,057 69,507 55,607 Cost of revenue: Cost of product revenue (2) 22,212 17,718 43,029 40,828 Cost of service and other revenue 6,125 3,557 12,347 6,555 Total cost of revenue 28,337 21,275 55,376 47,383 Gross profit (1) 7,703 3,782 14,131 8,224 Gross margin (1) 21.4 % 15.1 % 20.3 % 14.8 % Operating expenses: Research and development (2) 14,906 13,521 28,699 24,352 Sales and marketing (2) 24,985 23,198 49,318 43,575 General and administrative (2) 11,290 10,784 23,077 20,493 Total operating expenses 51,181 47,503 101,094 88,420 Loss from operations (43,478 ) (43,721 ) (86,963 ) (80,196 ) Interest income and other income, net 2,668 459 5,316 579 Interest expense (3,103 ) (481 ) (6,045 ) (903 ) Loss before provision for income taxes (43,913 ) (43,743 ) (87,692 ) (80,520 ) Provision for income taxes 133 96 325 211 Net loss $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Net loss per share, basic and diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Shares used in computing net loss per share, basic and diluted 48,951 47,882 49,085 47,686 (1) Gross profit and gross margin by source consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Gross profit Product revenue $ 7,118 $ 1,903 $ 14,080 $ 4,457 Service and other revenue 585 1,879 51 3,767 Total gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Gross margin Product revenue 24.3 % 9.7 % 24.7 % 9.8 % Service and other revenue 8.7 % 34.6 % 0.4 % 36.5 % Total gross margin 21.4 % 15.1 % 20.3 % 14.8 % (2) Include stock-based compensation expense as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Cost of revenue $ 403 $ 190 $ 761 $ 283 Research and development 2,824 1,808 5,439 2,966 Sales and marketing 3,545 2,864 6,143 4,570 General and administrative 3,333 2,552 6,300 4,601 Total stock-based compensation expense $ 10,105 $ 7,414 $ 18,643 $ 12,420 Outset Medical, Inc. Condensed Balance Sheets (in thousands, except per share amounts) June 30, December 31, 2023 2022 (Unaudited) Assets Current assets: Cash and cash equivalents $ 36,388 $ 73,222 Short-term investments 186,403 214,280 Accounts receivable, net 36,902 28,070 Inventories 44,495 51,476 Prepaid expenses and other current assets 5,216 6,597 Total current assets 309,404 373,645 Restricted cash 3,329 3,311 Property and equipment, net 14,539 15,876 Operating lease right-of-use assets 6,042 6,117 Other assets 1,128 1,166 Total assets $ 334,442 $ 400,115 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 2,217 $ 603 Accrued compensation and related benefits 17,461 21,519 Accrued expenses and other current liabilities 12,650 16,227 Accrued warranty liability 4,168 3,620 Deferred revenue, current 10,854 8,662 Operating lease liabilities, current 1,474 1,318 Total current liabilities 48,824 51,949 Accrued interest 484 113 Deferred revenue 89 151 Operating lease liabilities 5,308 5,576 Term loan 96,629 96,336 Total liabilities 151,334 154,125 Commitments and contingencies Stockholders' equity: Preferred stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of June 30, 2023 and December 31, 2022 — — Common stock, $0.001 par value; 300,000 shares authorized as of June 30, 2023 and December 31, 2022; 49,629 and 48,465 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively 50 48 Additional paid-in capital 1,060,418 1,035,456 Accumulated other comprehensive loss (393 ) (564 ) Accumulated deficit (876,967 ) (788,950 ) Total stockholders' equity 183,108 245,990 Total liabilities and stockholders' equity $ 334,442 $ 400,115 Outset Medical, Inc. Condensed Statements of Cash Flows (in thousands) (unaudited) Six Months Ended June 30, 2023 2022 Net cash used in operating activities $ (72,932 ) $ (76,910 ) Net cash provided by (used in) investing activities 29,796 (34,706 ) Net cash provided by financing activities 6,320 4,765 Net decrease in cash, cash equivalents and restricted cash (36,816 ) (106,851 ) Cash, cash equivalents and restricted cash at beginning of the period 76,533 215,659 Cash, cash equivalents and restricted cash at end of the period (1) $ 39,717 $ 108,808 (1) The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed balance sheets that sum to the total of the amounts shown in the accompanying condensed statements of cash flows (in thousands): June 30, 2023 2022 Cash and cash equivalents $ 36,388 $ 75,497 Restricted cash 3,329 33,311 Total cash, cash equivalents and restricted cash* $ 39,717 $ 108,808 * The total cash, including restricted cash, cash equivalents and investment securities as of June 30, 2023 was $226.1 million; compared to $295.4 million as of June 30, 2022. Appendix A Outset Medical, Inc. Results of Operations – Non-GAAP (in thousands, except per share amounts) (unaudited) Reconciliation between GAAP and non-GAAP net loss per share: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss per share, diluted $ (0.90 ) $ (0.92 ) $ (1.79 ) $ (1.69 ) Stock-based compensation expense 0.21 0.15 0.38 0.26 Non-GAAP net loss per share, diluted $ (0.69 ) $ (0.77 ) $ (1.41 ) $ (1.43 ) Reconciliation between GAAP and non-GAAP net loss: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP net loss, diluted $ (44,046 ) $ (43,839 ) $ (88,017 ) $ (80,731 ) Stock-based compensation expense 10,105 7,414 18,643 12,420 Non-GAAP net loss, diluted $ (33,941 ) $ (36,425 ) $ (69,374 ) $ (68,311 ) Reconciliation between GAAP and non-GAAP results of operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 GAAP gross profit $ 7,703 $ 3,782 $ 14,131 $ 8,224 Stock-based compensation expense 403 190 761 283 Non-GAAP gross profit $ 8,106 $ 3,972 $ 14,892 $ 8,507 GAAP gross margin 21.4 % 15.1 % 20.3 % 14.8 % Stock-based compensation expense 1.1 0.8 1.1 0.5 Non-GAAP gross margin 22.5 % 15.9 % 21.4 % 15.3 % GAAP research and development expense $ 14,906 $ 13,521 $ 28,699 $ 24,352 Stock-based compensation expense (2,824 ) (1,808 ) (5,439 ) (2,966 ) Non-GAAP research and development expense $ 12,082 $ 11,713 $ 23,260 $ 21,386 GAAP sales and marketing expense $ 24,985 $ 23,198 $ 49,318 $ 43,575 Stock-based compensation expense (3,545 ) (2,864 ) (6,143 ) (4,570 ) Non-GAAP sales and marketing expense $ 21,440 $ 20,334 $ 43,175 $ 39,005 GAAP general and administrative expense $ 11,290 $ 10,784 $ 23,077 $ 20,493 Stock-based compensation expense (3,333 ) (2,552 ) (6,300 ) (4,601 ) Non-GAAP general and administrative expense $ 7,957 $ 8,232 $ 16,777 $ 15,892 GAAP total operating expense $ 51,181 $ 47,503 $ 101,094 $ 88,420 Stock-based compensation expense (9,702 ) (7,224 ) (17,882 ) (12,137 ) Non-GAAP total operating expense $ 41,479 $ 40,279 $ 83,212 $ 76,283 View source version on businesswire.com: https://www.businesswire.com/news/home/20230802278579/en/
Investor Contact Jim Mazzola Outset Medical 858-342-8272 jmazzola@outsetmedical.com Media Contact Nicole Shannon Director, Marketing Communications for Outset Medical nshannon@outsetmedical.com