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Shockwave Medical Reports First Quarter 2024 Financial Results

SANTA CLARA, Calif., May 06, 2024 (GLOBE NEWSWIRE) -- Shockwave Medical, Inc. (Nasdaq: SWAV), a pioneer in the development and commercialization of transformational technologies for the treatment of cardiovascular disease, today reported financial results for the three months ended March 31, 2024.

“The solid growth in the first quarter across geographies and products is a testament to the continued demand for our innovative solutions, driven by the unrelenting and extraordinary performance of our global Shockwave teams,” said Doug Godshall, President and Chief Executive Officer of Shockwave Medical. “Our team is looking forward to continuing our mission as part of Johnson & Johnson and to working together to bring our life-changing therapies to even more patients across the globe.”

First Quarter 2024 Financial Results

Revenue for the first quarter ended March 31, 2024, was $218.8 million, a 36% increase from $161.1 million in the same period of 2023. The growth in revenue was primarily driven by increased adoption of Shockwave products in both the United States and internationally.

Gross profit for the first quarter of 2024 was $190.6 million compared to $140.0 million for the first quarter of 2023. Gross margin percentage was 87% for the three months ended March 31, 2024, consistent with gross margin for the three months ended March 31, 2023.

Total operating expenses for the first quarter of 2024 were $148.2 million, a 48% increase from $100.2 million in the first quarter of 2023. The increase was primarily driven by sales force expansion and higher headcount to support the growth of the business.

Net income for the first quarter of 2024 was $55.3 million, compared to net income of $39.1 million in the same period of 2023. Basic and diluted net income per share for the first quarter of 2024 was $1.48 and $1.44, respectively.

Adjusted EBITDA improved by approximately 19% to $68.5 million, in the first quarter of 2024, compared to adjusted EBITDA of $57.5 million in the first quarter of 2023. Adjusted EBITDA is a non-GAAP measure.

Cash, cash equivalents and short-term investments totaled $1,029.2 million as of March 31, 2024.

2024 Financial Guidance

Given the proposed acquisition of Shockwave Medical by Johnson & Johnson (NYSE: JNJ), Shockwave Medical is withdrawing its full year 2024 guidance, previously issued on February 15, 2024.

Conference Call

Given the proposed acquisition of Shockwave Medical by Johnson & Johnson (NYSE: JNJ), Shockwave Medical will not be hosting the previously scheduled earnings conference call today.

About Shockwave Medical, Inc.

Shockwave Medical is a leader in the development and commercialization of innovative products that are transforming the treatment of cardiovascular disease. Its first-of-its-kind Intravascular Lithotripsy (IVL) technology has transformed the treatment of atherosclerotic cardiovascular disease by safely using sonic pressure waves to disrupt challenging calcified plaque, resulting in significantly improved patient outcomes. Shockwave Medical has also recently acquired the Reducer, which is under clinical investigation in the United States and is CE Marked in the European Union and the United Kingdom. By redistributing blood flow within the heart, the Reducer is designed to provide relief to the millions of patients worldwide suffering from refractory angina. Learn more at

Forward-Looking Statements

This press release contains statements relating to our expectations, projections, beliefs, and prospects, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” and similar expressions, and the negative of these terms. Forward-looking statements in this press release include, but are not limited to, statements regarding our pending acquisition by Johnson & Johnson, our business strategy and plans, our objectives for future operations and financial performance and other matters. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware.

If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the pending acquisition will not be satisfied, including the risk that clearance under the Hart-Scott-Rodino Antitrust Improvements Act or other applicable antitrust laws will not be obtained; uncertainty as to the percentage of our stockholders that will vote to approve the proposed transaction; the possibility that the transaction will not be completed in the expected timeframe or at all; potential adverse effects to our business or the business of Johnson & Johnson during the pendency of the transaction, such as employee departures or distraction of management from business operations; the risk of stockholder litigation relating to the transaction, including resulting expense or delay; the potential that the expected benefits and opportunities of the acquisition, if completed, may not be realized or may take longer to realize than expected; challenges inherent in product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new products; manufacturing difficulties and delays; product efficacy or safety concerns resulting in product recalls or regulatory action; economic conditions, including currency exchange and interest rate fluctuations; the risks associated with global operations; competition, including technological advances, new products and patents attained by competitors; challenges to patents; changes to applicable laws and regulations, including tax laws and global health care reforms; adverse litigation or government action; changes in behavior and spending patterns or financial distress of purchasers of health care services and products; and trends toward health care cost containment. These factors, as well as others, are discussed in our filings with the Securities and Exchange Commission (SEC), including in the sections titled “Risk Factors” in our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, and in our other reports filed with the SEC. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date hereof to conform these statements to actual results or revised expectations.

Use of Non-GAAP Financial Measures

This press release contains supplemental financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP), including references to adjusted EBITDA, a non-GAAP financial measure that excludes from net income the effects of income tax (benefit) provision, other (expense) income, net, interest expense, interest income, income (loss) from equity method investment, depreciation and amortization, and stock-based compensation. We believe the presentation of adjusted EBITDA is useful as it provides visibility to our underlying continuing operating performance by excluding the impact of certain items that are non-cash in nature or not related to our core business operations.

Our definition of adjusted EBITDA may differ from similarly titled measures used by others. Adjusted EBITDA should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. Because adjusted EBITDA excludes the effect of items that increase or decrease our reported results of operations, management strongly encourages investors to review, when they become available, our consolidated financial statements and publicly filed reports in their entirety. A reconciliation of adjusted EBITDA to net income has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

Media Contact:
Scott Shadiow

Investor Contact:
Debbie Kaster

Balance Sheet Data
(in thousands)
  March 31,
 December 31,
Cash and cash equivalents $281,674  $328,422
Short-term investments  747,559   662,132
Accounts receivable, net  124,440   114,552
Inventory  111,215   107,587
Prepaid expenses and other current assets  10,462   12,567
Total current assets  1,275,350   1,225,260
Operating lease right-of-use assets  34,919   29,707
Property and equipment, net  78,693   68,923
Equity method investment  2,356   1,643
Intangible assets, net  91,960   92,857
Goodwill  39,568   39,568
Deferred tax assets  111,900   99,169
Other assets  9,001   9,436
TOTAL ASSETS $1,643,747  $1,566,563
Accounts payable $9,843  $8,868
Accrued liabilities  78,838   91,696
Lease liability, current portion  3,653   3,641
Total current liabilities  92,334   104,205
Lease liability, noncurrent portion  40,336   35,103
Convertible debt, noncurrent portion  732,810   731,863
Related party contract liability, noncurrent portion  12,273   12,273
Deferred tax liabilities  3,609   3,609
Long-term income tax liability  2,969   1,526
Other liabilities  7,659   9,307
TOTAL LIABILITIES  891,990   897,886
Common stock  38   37
Additional paid-in capital  586,017   557,882
Accumulated other comprehensive (loss) income  (109)  293
Retained earnings  165,811   110,465

Statement of Operations Data
(in thousands, except share and per share data)
  Three Months Ended
  March 31,
   2024   2023 
Product revenue $218,805  $161,066 
Cost of revenue:    
Cost of product revenue  28,207   21,066 
Gross profit  190,598   140,000 
Operating expenses:    
Research and development  44,466   26,971 
Sales and marketing  74,492   54,011 
General and administrative  29,233   19,204 
Total operating expenses  148,191   100,186 
Income from operations  42,407   39,814 
Income (loss) from equity method investment  713   (823)
Interest income  12,318   1,740 
Interest expense  (2,943)  (636)
Other (expense) income, net  (2,496)  642 
Net income before taxes  49,999   40,737 
Income tax (benefit) provision  (5,347)  1,612 
Net income $55,346  $39,125 
Net income per share, basic $1.48  $1.07 
Net income per share, diluted $1.44  $1.03 
Shares used in computing net income per share, basic  37,284,946   36,427,263 
Shares used in computing net income per share, diluted  38,472,013   37,979,448 

Reconciliation of GAAP Net Income to Adjusted EBITDA
(in thousands)
  Three Months Ended
  March 31,
   2024   2023 
GAAP Net Income $55,346  $39,125 
Non-GAAP Adjustments    
Income tax (benefit) provision  (5,347)  1,612 
Other expense (income), net  2,496   (642)
Interest expense  2,943   636 
Interest income  (12,318)  (1,740)
(Income) loss from equity method investment  (713)  823 
Depreciation and amortization  3,109   1,708 
Stock-based compensation expense  22,937   15,967 
Adjusted EBITDA $68,453  $57,489 

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