Restoration Robotics™ Reports Second Quarter 2018 Financial Results
Second Quarter and Recent Highlights:
- Launched next-generation ARTAS® iX System with implantation functionality in
July 2018 - Revenue of
$5.5 million , compared to$5.8 million in second quarter 2017 - Increased gross margins in quarter to 54%, up from 40% in second quarter 2017
- Sold 11 ARTAS® Robotic Hair Restoration Systems worldwide
- Completed
$20 million loan and security agreement onMay 10, 2018
Mr. Rhodes continued, “We also continued to expand our commercial capacity, and dedicated additional resources ahead of the launch of our next-generation ARTAS® iX System, unveiled in July. We look forward to fulfilling initial orders for ARTAS® iX Systems in the third quarter in the U.S. and anticipate receiving CE Mark approval in the EU around year-end. As the only robotic intelligent solution to offer precise, minimally-invasive harvesting and implantation functionality in one platform, the ARTAS® iX System delivers precision, repeatability, and clinical workflow efficiencies to enhance our offering for patients and physicians further while extending our leadership position in the field of robotic hair restoration.”
Second Quarter 2018 Financial Results
Revenue in the second quarter of 2018 was
Gross margin for the second quarter was 54% compared to 40% in the second quarter of 2017, driven by cost efficiencies in 2018 and higher procedure-based revenue which generally provides a higher gross margin.
Operating expenses in the second quarter of 2018 were
Total cash, cash equivalents, and restricted cash were
Conference Call Information
A replay of the call will be available starting on
About
Forward-Looking Statements
Statements made in this press release and the earnings call referencing the press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements, including our expectations as to our cash runway and timing and expectations for the launch of implantation functionality, are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: whether there is growth in demand for our ARTAS System for use in harvesting hair follicles for transplant; the progress of our commercialization, marketing and manufacturing capabilities; the continuing productivity and effectiveness of our commercial infrastructure and salesforce; our financial performance; our ability to establish collaborations and/or partnerships; the timing or likelihood of regulatory filings and approvals for ARTAS for use in transplanting of hair follicles, and expanding the approved use of ARTAS for use in dissecting hair follicles to include women and individuals without straight brown or black hair; our expectations regarding the potential market size and the size of the patient populations for ARTAS being accurate; whether we are effective in the pricing of ARTAS; whether we are successful in the implementation of our business model and strategic plans for our business and technology; the scope of protection we are able to establish and maintain for intellectual property rights covering ARTAS, along with any product enhancements; our ability to accurately estimate our expenses, future revenue, capital requirements, our needs for additional financing and our ability to obtain additional capital; and developments relating to our competitors and our industry, including competing therapies and procedures. These factors, together with those that are described in greater detail in our Annual Report on Form 10-K filed on March 5, 2018, as well as any reports that we may file with the
Media Contact
Director of Marketing
+1- 408-883-6764
lisam@restorationrobotics.com
Investor Contact
ir@restorationrobotics.com
646-536-7000
| RESTORATION ROBOTICS, INC. | ||||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (in thousands, except share and per share data) |
||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, |
June 30, |
|||||||||||||||||||
| 2018 |
2017 |
2018 |
2017 |
|||||||||||||||||
| Revenue | $ | 5,475 | $ | 5,789 | $ | 10,480 | $ | 11,264 | ||||||||||||
| Cost of revenue | 2,514 | 3,487 | 5,699 | 6,578 | ||||||||||||||||
| Gross profit | 2,961 | 2,302 | 4,781 | 4,686 | ||||||||||||||||
| Gross margins | 54% | 40% | 46% | 42% | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Sales and marketing | 4,365 | 3,338 | 8,749 | 7,304 | ||||||||||||||||
| Research and development | 2,153 | 1,925 | 4,278 | 3,841 | ||||||||||||||||
| General and administrative | 1,617 | 1,484 | 3,968 | 2,410 | ||||||||||||||||
| Total operating expenses | 8,135 | 6,747 | 16,995 | 13,555 | ||||||||||||||||
| Loss from operations | (5,174 | ) | (4,445 | ) | (12,214 | ) | (8,869 | ) | ||||||||||||
| Other expense, net: | ||||||||||||||||||||
| Interest expense | (500 | ) | (529 | ) | (858 | ) | (1,115 | ) | ||||||||||||
| Other expense, net | (559 | ) | (25 | ) | (579 | ) | (174 | ) | ||||||||||||
| Total other expense, net | (1,059 | ) | (554 | ) | (1,437 | ) | (1,289 | ) | ||||||||||||
| Net loss before provision for income taxes | (6,233 | ) | (4,999 | ) | (13,651 | ) | (10,158 | ) | ||||||||||||
| Provision for income taxes | 11 | 8 | 24 | 24 | ||||||||||||||||
| Net loss attributable to common stockholders | $ | (6,244 | ) | $ | (5,007 | ) | $ | (13,675 | ) | $ | (10,182 | ) | ||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.21 | ) | $ | (3.09 | ) | $ | (0.47 | ) | $ | (6.29 | ) | ||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 29,080,414 | 1,618,581 | 29,038,730 | 1,619,172 | ||||||||||||||||
| RESTORATION ROBOTICS, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share and per share data) | ||||||||
| June 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 16,861 | $ | 23,545 | ||||
| Accounts receivable, net | 6,157 | 3,864 | ||||||
| Inventory | 2,974 | 2,761 | ||||||
| Prepaid expenses and other current assets | 1,393 | 1,562 | ||||||
| Total current assets | 27,385 | 31,732 | ||||||
| Property and equipment, net | 1,455 | 1,138 | ||||||
| Restricted cash | 100 | 100 | ||||||
| Other assets | 100 | — | ||||||
| TOTAL ASSETS | $ | 29,040 | $ | 32,970 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 3,014 | $ | 2,044 | ||||
| Accrued compensation | 1,800 | 1,630 | ||||||
| Other accrued liabilities | 2,266 | 1,125 | ||||||
| Deferred revenue | 1,500 | 1,517 | ||||||
| Current portion of long-term debt, net | — | 7,730 | ||||||
| Total current liabilities | 8,580 | 14,046 | ||||||
| Other long-term liabilities | 629 | 459 | ||||||
| Long-term debt, net | 19,228 | 5,271 | ||||||
| TOTAL LIABILITIES | 28,437 | 19,776 | ||||||
| Commitments and Contingencies | ||||||||
| Convertible preferred stock, $0.0001 par value; 236,154,444 shares authorized and no shares issued and outstanding as of June 30, 2018 and December 31, 2017 |
— | — | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Common stock, $0.0001 par value; 350,490,000 shares authorized as of June 30, 2018 and December 31, 2017; 29,137,695 and 28,940,282 shares issued and outstanding as of June 30, 2018 and December 31, 2017 |
3 | 3 | ||||||
| Additional paid-in capital | 178,799 | 177,757 | ||||||
| Accumulated other comprehensive loss | (37 | ) | (79 | ) | ||||
| Accumulated deficit | (178,162 | ) | (164,487 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 603 | 13,194 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 29,040 | $ | 32,970 | ||||