Outset Medical Reports Fourth Quarter and Full Year 2021 Financial Results

February 16, 2022

Record Annual Revenue of $102.6 Million; 105% Year-over-Year Growth

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 16, 2022-- 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 fourth quarter and full year ended December 31, 2021. The Company also announced that Leslie Trigg has been appointed Chair of the Board of Directors in addition to her ongoing role as President and Chief Executive Officer.

Recent Highlights

  • Recorded net revenue of $28.2 million in the fourth quarter of 2021, a 63.2% increase compared to $17.2 million in the fourth quarter of 2020, and $102.6 million for the full year of 2021, representing an increase of 105.5% compared to $49.9 million for 2020
  • Achieved gross margin for the fourth quarter of 2021 of 11.8%, compared to 2.4% in the fourth quarter of 2020
  • Signed agreements with 7 of the 8 largest national health systems and one-third of the largest 100 regional health systems
  • Granted 510(k) clearance from the Food and Drug Administration (FDA) for Tablo® Hemodialysis System cartridge, enabling full production in Mexico
  • Received the first-ever approval for the Transitional Add-on Payment Adjustment for New and Innovative Equipment and Supplies (TPNIES) program from the Centers for Medicare & Medicaid Services (CMS), which deemed Tablo® a substantial clinical improvement over the incumbent home hemodialysis device
  • Released its inaugural Environmental, Social, and Governance (ESG) report highlighting the Company’s ESG-related programs, priorities, goals, and performance
  • Leslie Trigg appointed Chair in addition to her ongoing role as Chief Executive Officer. Former Chairman D. Keith Grossman continues to serve on the board and has been appointed Lead Independent Director

“Our entire team contributed to an exceptional 2021, driving record revenue growth, meaningful progress toward our long-term gross margin goal and excellent visibility into 2022,” said Leslie Trigg, Chair and Chief Executive Officer. “Our established relationships with 7 of the 8 largest national health systems and one-third of the largest 100 regional health systems puts us in a strong position for growth this year in both the acute and home settings.”

“On behalf of the Outset Board of Directors, I am pleased to announce Leslie’s appointment to the additional role of Board Chair,” said D. Keith Grossman, Lead Independent Director. “We look forward to continuing to support Leslie and the entire team as Outset continues to transform the dialysis industry.”

Fourth Quarter 2021 Financial Results

Revenue for the fourth quarter of 2021 was $28.2 million, representing an increase of 63.2% compared to $17.2 million in the fourth quarter of 2020. Product revenue for the fourth quarter of 2021 was $23.7 million, representing an increase of 79.5% compared to $13.2 million in the fourth quarter of 2020. Service and other revenue for the fourth quarter of 2021 was $4.5 million, representing an increase of 10.6% compared to $4.1 million in the fourth quarter of 2020.

Total gross profit for the fourth quarter of 2021 was $3.3 million, compared to a gross loss of $0.4 million for the fourth quarter of 2020. Total gross margin for the fourth quarter of 2021 was 11.8%, compared to 2.4% in the fourth quarter of 2020. On a non-GAAP basis, gross margin for the fourth quarter of 2021 improved to 12% from 2.8% in the fourth quarter of 2020. Product gross profit for the fourth quarter of 2021 was $2.2 million, compared to ($1.7) million of product gross loss in the fourth quarter of 2020. Product gross margin for the fourth quarter of 2021 was 9.3%, compared to (13.2)% in the fourth quarter of 2020. Service and other gross profit for the fourth quarter of 2021 was $1.1 million, compared to $2.2 million of service and other gross profit in the fourth quarter of 2020. Service and other gross margin for the fourth quarter of 2021 was 25.1%, compared to 53.0% in the fourth quarter of 2020.

Operating expenses for the fourth quarter of 2021 were $44.1 million, including research and development (R&D) expenses of $11.4 million, sales and marketing (S&M) expenses of $23.0 million, and general and administrative (G&A) expenses of $9.7 million. This compared to operating expenses of $32.0 million, including R&D expenses of $7.8 million, S&M expenses of $15.2 million, and G&A expenses of $9.1 million in the fourth quarter of 2020.

Excluding stock-based compensation expense, non-GAAP operating expenses for the fourth quarter of 2021 were $39.4 million, including R&D expenses of $10.2 million, S&M expenses of $21.1 million, and G&A expenses of $8.1 million.

Fourth quarter 2021 net loss was ($41.2) million, or ($0.87) per share, compared to net loss of ($32.0) million, or ($0.75) per share, for the same period in 2020. On a non-GAAP basis, net loss for the fourth quarter of 2021 was ($36.4) million, or ($0.77) per share, compared to non-GAAP net loss of ($25.8) million, or ($0.60) per share for the same period in 2020.

Full Year 2021 Financial Results

Revenue for the full year of 2021 was $102.6 million, representing an increase of 105.5% compared to $49.9 million for 2020. Product revenue for the full year of 2021 was $84.3 million, representing an increase of 112.8% compared to $39.6 million for 2020. Service and other revenue for the full year of 2021 was $18.3 million, representing an increase of 77.2% compared to $10.3 million for 2020.

Total gross profit for the full year of 2021 was $7.6 million, compared to a gross loss of ($13.0) million for 2020. Total gross margin for the full year of 2021 was 7.4%, compared to (26.1)% in 2020. Product gross loss for the full year of 2021 was ($0.3) million, compared to ($17.4) million of product gross loss in 2020. Product gross margin for the full year of 2021 was (0.4)%, compared to (44.0)% in 2020. Service and other gross profit for the full year of 2021 was $7.9 million, compared to $4.4 million of service and other gross profit in 2020. Service and other gross margin for the full year of 2021 was 43.4%, compared to 42.5% in 2020.

Operating expenses for the full year of 2021 were $138.1 million, including R&D expenses of $36.7 million, S&M expenses of $65.1 million, and G&A expenses of $36.3 million. This compared to operating expenses of $104.4 million, including R&D expenses of $28.9 million, S&M expenses of $45.1 million, and G&A expenses of $30.5 million for 2020.

Excluding stock-based compensation expense, non-GAAP operating expenses for the full year of 2021 were $121.0 million, including R&D expenses of $32.9 million, S&M expenses of $59.2 million, and G&A expenses of $28.8 million.

Full year 2021 net loss attributable to common stockholders was ($131.9) million, or ($2.89) per share, compared to a net loss attributable to common stockholders of ($79.3) million, or ($4.85) per share, for 2020. On a non-GAAP basis, net loss for the full year of 2021 was ($114.5) million, or ($2.51) per share, compared to a non-GAAP net loss of ($57.9) million, or ($3.54) per share for 2020.

Total cash, including restricted cash, cash equivalents and short-term investments, was $372.8 million as of December 31, 2021.

Full Year 2022 Financial Guidance

Outset projects revenue for the full year 2022 to range from $142 million to $150 million, which represents approximately 38% to 46% growth over the Company’s fiscal year 2021 revenue.

Webcast and Conference Call Details

Outset will host a conference call today, February 16, 2022, at 2:00 p.m. PT / 5:00 p.m. ET to discuss its fourth quarter and full year 2021 financial results. The dial-in numbers are (833) 614-1409 for domestic callers and (914) 987-7130 for international callers. The conference ID is 6892802. 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 (including sales into the home market and such sales as a percentage of 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 reduce the cost of producing and shipping Tablo devices and its ability to achieve projected cost reductions at the level or within the timeframe estimated; the Company’s expectations with respect to anticipated benefits of the TPNIES approval, as well as the Company’s expectations regarding the continuing impact of the COVID-19 pandemic on the Company and its operations as well as the impact on 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 Outset’s public filings with the Securities and Exchange Commission, including Outset’s 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

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

23,650

 

 

 

$

13,177

 

 

 

$

84,312

 

 

 

$

39,612

 

 

Service and other revenue

 

 

4,502

 

 

 

 

4,070

 

 

 

 

18,290

 

 

 

 

10,323

 

 

Total revenue

 

 

28,152

 

 

 

 

17,247

 

 

 

 

102,602

 

 

 

 

49,935

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue (2)

 

 

21,459

 

 

 

 

14,917

 

 

 

 

84,639

 

 

 

 

57,035

 

 

Cost of service and other revenue

 

 

3,372

 

 

 

 

1,913

 

 

 

 

10,355

 

 

 

 

5,937

 

 

Total cost of revenue

 

 

24,831

 

 

 

 

16,830

 

 

 

 

94,994

 

 

 

 

62,972

 

 

Gross profit (1)

 

 

3,321

 

 

 

 

417

 

 

 

 

7,608

 

 

 

 

(13,037

)

 

Gross margin (1)

 

 

11.8

 

%

 

 

2.4

 

%

 

 

7.4

 

%

 

 

(26.1

)

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (2)

 

 

11,410

 

 

 

 

7,784

 

 

 

 

36,741

 

 

 

 

28,850

 

 

Sales and marketing (2)

 

 

22,991

 

 

 

 

15,198

 

 

 

 

65,070

 

 

 

 

45,068

 

 

General and administrative (2)

 

 

9,719

 

 

 

 

9,050

 

 

 

 

36,316

 

 

 

 

30,512

 

 

Total operating expenses

 

 

44,120

 

 

 

 

32,032

 

 

 

 

138,127

 

 

 

 

104,430

 

 

Loss from operations

 

 

(40,799

)

 

 

 

(31,615

)

 

 

 

(130,519

)

 

 

 

(117,467

)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other income, net

 

 

123

 

 

 

 

2

 

 

 

 

498

 

 

 

 

526

 

 

Interest expense

 

 

(431

)

 

 

 

(430

)

 

 

 

(1,715

)

 

 

 

(2,891

)

 

Change in fair value of redeemable convertible preferred stock warrant liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(93

)

 

Loss on extinguishment of term loan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,567

)

 

Loss before provision for income taxes

 

 

(41,107

)

 

 

 

(32,043

)

 

 

 

(131,736

)

 

 

 

(121,492

)

 

Provision for income taxes

 

 

125

 

 

 

 

 

 

 

 

199

 

 

 

 

 

 

Net loss

 

$

(41,232

)

 

 

$

(32,043

)

 

 

$

(131,935

)

 

 

$

(121,492

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders, basic and diluted (3)

 

$

(41,232

)

 

 

$

(32,043

)

 

 

$

(131,935

)

 

 

$

(79,324

)

 

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.87

)

 

 

$

(0.75

)

 

 

$

(2.89

)

 

 

$

(4.85

)

 

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

47,169

 

 

 

 

42,715

 

 

 

 

45,589

 

 

 

 

16,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Gross profit and gross margin by source consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

$

2,191

 

 

 

$

(1,740

)

 

 

$

(327

)

 

 

$

(17,423

)

 

Service and other revenue

 

 

1,130

 

 

 

 

2,157

 

 

 

 

7,935

 

 

 

 

4,386

 

 

Total gross profit

 

$

3,321

 

 

 

$

417

 

 

 

$

7,608

 

 

 

$

(13,037

)

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

 

 

9.3

 

%

 

 

(13.2

)

%

 

 

(0.4

)

%

 

 

(44.0

)

%

Service and other revenue

 

 

25.1

 

%

 

 

53.0

 

%

 

 

43.4

 

%

 

 

42.5

 

%

Total gross margin

 

 

11.8

 

%

 

 

2.4

 

%

 

 

7.4

 

%

 

 

(26.1

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Include stock-based compensation expenses as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Cost of revenue

 

$

68

 

 

 

$

74

 

 

 

$

269

 

 

 

$

255

 

 

Research and development

 

 

1,241

 

 

 

 

1,289

 

 

 

 

3,809

 

 

 

 

4,615

 

 

Sales and marketing

 

 

1,896

 

 

 

 

1,595

 

 

 

 

5,897

 

 

 

 

4,423

 

 

General and administrative

 

 

1,587

 

 

 

 

3,310

 

 

 

 

7,470

 

 

 

 

12,146

 

 

Total stock-based compensation expenses

 

$

4,792

 

 

 

$

6,268

 

 

 

$

17,445

 

 

 

$

21,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) A reconciliation of the net loss to net loss attributable to common stockholders is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net loss

 

$

(41,232

)

 

 

$

(32,043

)

 

 

$

(131,935

)

 

 

$

(121,492

)

 

Adjustment to redemption value on redeemable convertible preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(362

)

 

Deemed dividend on settlement of accrued dividend*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,530

 

 

Net loss attributable to common stockholders, basic and diluted

 

$

(41,232

)

 

 

$

(32,043

)

 

 

$

(131,935

)

 

 

$

(79,324

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Deemed dividend on settlement of accrued dividend arose as a result of the terms and conditions associated with the Company's redeemable convertible preferred stock outstanding prior to the Company's initial public offering ("IPO"). These terms and conditions were described in the Company's previous SEC filings, including the 424(b) prospectus filed on September 16, 2020 in connection with the IPO.

 

 

 

 

 

Outset Medical, Inc.

Condensed Balance Sheets

(in thousands, except per share amounts)

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

182,348

 

 

$

294,972

 

Short-term investments

 

 

157,140

 

 

 

19,898

 

Accounts receivable, net

 

 

25,600

 

 

 

6,468

 

Inventories

 

 

39,185

 

 

 

18,384

 

Prepaid expenses and other current assets

 

 

5,529

 

 

 

6,189

 

Total current assets

 

 

409,802

 

 

 

345,911

 

Restricted cash

 

 

33,311

 

 

 

33,311

 

Property and equipment, net

 

 

12,964

 

 

 

14,998

 

Operating lease right-of-use assets

 

 

7,231

 

 

 

8,253

 

Other assets

 

 

156

 

 

 

1,356

 

Total assets

 

$

463,464

 

 

$

403,829

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,763

 

 

$

4,948

 

Accrued compensation and related benefits

 

 

24,948

 

 

 

16,845

 

Accrued expenses and other current liabilities

 

 

13,789

 

 

 

7,903

 

Accrued warranty liability

 

 

3,704

 

 

 

2,913

 

Deferred revenue, current

 

 

6,340

 

 

 

3,201

 

Operating lease liabilities, current

 

 

1,151

 

 

 

882

 

Total current liabilities

 

 

51,695

 

 

 

36,692

 

Accrued interest, noncurrent

 

 

721

 

 

 

240

 

Deferred revenue, noncurrent

 

 

312

 

 

 

570

 

Operating lease liabilities, noncurrent

 

 

6,893

 

 

 

8,044

 

Term loan, noncurrent

 

 

29,762

 

 

 

29,674

 

Total liabilities

 

 

89,383

 

 

 

75,220

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000 shares authorized, and no shares issued and outstanding as of December 31, 2021 and 2020

 

 

 

 

 

 

Common stock, $0.001 par value; 300,000 shares authorized as of December 31, 2021 and 2020; 47,241 and 42,722 shares issued and outstanding as of December 31, 2021 and 2020, respectively

 

 

47

 

 

 

43

 

Additional paid-in capital

 

 

1,000,212

 

 

 

822,624

 

Accumulated other comprehensive (loss) income

 

 

(184

)

 

 

1

 

Accumulated deficit

 

 

(625,994

)

 

 

(494,059

)

Total stockholders' equity

 

 

374,081

 

 

 

328,609

 

Total liabilities and stockholders' equity

 

$

463,464

 

 

$

403,829

 

 

Outset Medical, Inc.

Condensed Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Years Ended December 31,

 

 

2021

 

2020

Net cash used in operating activities

 

$

(130,264

)

 

$

(99,015

)

Net cash provided by (used in) investing activities

 

 

(142,507

)

 

 

3,947

 

Net cash provided by financing activities

 

 

160,147

 

 

 

385,682

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(112,624

)

 

 

290,614

 

Cash, cash equivalents and restricted cash at beginning of the period

 

 

328,283

 

 

 

37,669

 

Cash, cash equivalents and restricted cash at end of the period (1)

 

$

215,659

 

 

$

328,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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):

 

 

 

 

 

December 31,

 

 

2021

 

2020

Cash and cash equivalents

 

$

182,348

 

 

$

294,972

 

Restricted cash

 

 

33,311

 

 

 

33,311

 

Total cash, cash equivalents and restricted cash*

 

$

215,659

 

 

$

328,283

 

 

 

 

 

 

 

 

* The total cash, including restricted cash, cash equivalents and investment securities as of December 31, 2021 was $372.8 million; compared to $348.2 million as of December 31, 2020.

 

 

 

 

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 attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP net loss per share to common stockholders, diluted

 

$

(0.87

)

 

 

$

(0.75

)

 

 

$

(2.89

)

 

 

$

(4.85

)

 

Stock-based compensation expense

 

 

0.10

 

 

 

 

0.15

 

 

 

 

0.38

 

 

 

 

1.31

 

 

Non-GAAP net loss per share to common stockholders, diluted

 

$

(0.77

)

 

 

$

(0.60

)

 

 

$

(2.51

)

 

 

$

(3.54

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP net loss attributable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP net loss attributable to common stockholders, diluted

 

$

(41,232

)

 

 

$

(32,043

)

 

 

$

(131,935

)

 

 

$

(79,324

)

 

Stock-based compensation expense

 

 

4,792

 

 

 

 

6,268

 

 

 

 

17,445

 

 

 

 

21,439

 

 

Non-GAAP net loss per share attributable to common stockholders, diluted

 

$

(36,440

)

 

 

$

(25,775

)

 

 

$

(114,490

)

 

 

$

(57,885

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation between GAAP and non-GAAP results of operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP gross profit

 

$

3,321

 

 

 

$

417

 

 

 

$

7,608

 

 

 

$

(13,037

)

 

Stock-based compensation expense

 

 

68

 

 

 

 

74

 

 

 

 

269

 

 

 

 

255

 

 

Non-GAAP gross profit

 

$

3,389

 

 

 

$

491

 

 

 

$

7,877

 

 

 

$

(12,782

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

 

11.8

 

%

 

 

2.4

 

%

 

 

7.4

 

%

 

 

(26.1

)

%

Stock-based compensation expense

 

 

0.2

 

 

 

 

0.4

 

 

 

 

0.3

 

 

 

 

0.5

 

 

Non-GAAP gross margin

 

 

12.0

 

%

 

 

2.8

 

%

 

 

7.7

 

%

 

 

(25.6

)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development expense

 

$

11,410

 

 

 

$

7,784

 

 

 

$

36,741

 

 

 

$

28,850

 

 

Stock-based compensation expense

 

 

(1,241

)

 

 

 

(1,289

)

 

 

 

(3,809

)

 

 

 

(4,615

)

 

Non-GAAP research and development expense

 

$

10,169

 

 

 

$

6,495

 

 

 

$

32,932

 

 

 

$

24,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expense

 

$

22,991

 

 

 

$

15,198

 

 

 

$

65,070

 

 

 

$

45,068

 

 

Stock-based compensation expense

 

 

(1,896

)

 

 

 

(1,595

)

 

 

 

(5,897

)

 

 

 

(4,423

)

 

Non-GAAP sales and marketing expense

 

$

21,095

 

 

 

$

13,603

 

 

 

$

59,173

 

 

 

$

40,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expense

 

$

9,719

 

 

 

$

9,050

 

 

 

$

36,316

 

 

 

$

30,512

 

 

Stock-based compensation expense

 

 

(1,587

)

 

 

 

(3,310

)

 

 

 

(7,470

)

 

 

 

(12,146

)

 

Non-GAAP general and administrative expense

 

$

8,132

 

 

 

$

5,740

 

 

 

$

28,846

 

 

 

$

18,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP total operating expense

 

$

44,120

 

 

 

$

32,032

 

 

 

$

138,127

 

 

 

$

104,430

 

 

Stock-based compensation expense

 

 

(4,724

)

 

 

 

(6,194

)

 

 

 

(17,176

)

 

 

 

(21,184

)

 

Non-GAAP total operating expense

 

$

39,396

 

 

 

$

25,838

 

 

 

$

120,951

 

 

 

$

83,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor Contact
Jim Mazzola
Outset Medical
858-342-8272
jmazzola@outsetmedical.com

Brian Johnston
(332) 895-3222
Gilmartin Group
investors@outsetmedical.com

Media Contact
Nicole Shannon
Director, Marketing Communications for Outset Medical
nshannon@outsetmedical.com

Source: Outset Medical, Inc.