Outset Medical reports record revenue in third quarter
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Dialysis machine manufacturer Outset Medical Inc. reported record revenue for the third quarter of 2022, boosting its stock value and leading to a revised guidance for the rest of the year.
The company reported net revenue of $27.8 million, a 5.5% increase compared with the $26.3 million in the third quarter of last year, according to a press release.
The improvement in revenue lead to a spike in the company’s share price, moving from $11.47 on Nov. 9 to $19.62 on Nov. 16, after the third-quarter earnings were announced.
Outset rebounded from a temporary halt in manufacturing of the company’s Tablo dialysis machine in June while the FDA conducted a technical review of changes to the machine.
“Our third-quarter results reflect the value Tablo is delivering in both the acute and home settings, with console shipments exceeding our initial expectations,” Leslie Trigg, chair and CEO of Outset, said in the release. “While we have seen staffing and inflationary pressures persist for our provider customers, we believe our continued expansion in the acute setting and our strong start to rebuilding the home patient pipeline reflects patient preference for Tablo and strong demand across end markets.”
The San Jose, California company was awarded a 5-year contract by the Department of Veterans Affairs (VA) to provide Tablo machines to 106 VA hospitals, as well as into home settings.
Product revenue for the third quarter was $21.7 million, compared with $21.8 million in the third quarter of 2021, according to the release. Service and other revenue for the third quarter of 2022 was $6 million, representing an increase of 34% compared to $4.5 million in the third quarter of 2021. Total gross profit for the third quarter of 2022 was $4.3 million, compared with $2.9 million for the third quarter of 2021.
Company officials said they now project revenue for 2022 of $111 million to $113 million, which represents 8% to 10% growth compared with 2021. “This updated guidance compares to prior 2022 guidance of $105 million to $110 million,” according to the release.
References:
Market summary, Outset Medical. www.google.com/search?q=outset+medical+stock&rlz=1C1GCEU_enUS999US999&oq=Outset+Medical&aqs=chrome.0.69i59j69i57j46i131i199i433i465i512j0i67j0i512j69i60l2j69i61.3388j1j4&sourceid=chrome&ie=UTF-8 Accessed Nov. 18, 2022.
Outset Medical reports third quarter 2022 financial results. https://investors.outsetmedical.com/news-releases/news-release-details/outset-medical-reports-third-quarter-2022-financial-results Published Nov. 8, 2022. Accessed Nov. 18, 2022.
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