Opsens Inc.
FQ3/23: strong revenues and GMs; full market release of SavvyWire in coming weeks
Our view: OpSens reported FQ3/23 (May-qtr) revenues of $13.2MM, significantly ahead of RBCe ($11.1MM) and consensus ($11.5MM). Revenues were up +22% q/q and +31% y/y. Net loss of $4.2MM was worse than RBCe ($3.2MM loss) and consensus ($3.4MM loss) as higher revenues and GMs were more than offset by higher OpEx associated with launch investments. A full market release of SavvyWire is expected in the coming weeks. Management noted commercial synergies between OptoWire and SavvyWire are aiding OptoWire adoption and revenues.
Key points:
FQ3/23 revenues of $13.2MM (+22% q/q and +31% y/y), above RBCe ($11.1MM) and consensus ($11.5MM). Included in the $13.2MM were total medical revenues of $12.5MM (+26% q/q; +36% y/y), with FFR and dPR sales of $6.8MM (+4% y/y, despite a strong base-qtr that benefited from pent-up demand of FQ2/22) ahead of RBCe ($5.9MM) and led by strong performance in the US (+31% y/y). Optical medical products revenues (including the supply agreement with Abiomed) were $4.9MM (+92% y/y), ahead of RBCe ($3.4MM). Structural Heart (SavvyWire) revenues of .8MM were up +64% q/q, as the company ramped up commercialization of SavvyWire but were light vs. RBCe (.9MM). Industrial revenues of .7MM (-22% y/y) were below RBCe (.8MM). GMs of ~59% were above estimates (RBCe: 56%; cons.: 58%). Operating expenses of $11.8MM (+26% q/q; +50% y/y) were ahead of estimates (~ $9.4MM). FQ3 net loss of $4.2MM was worse vs. RBCe ($3.2MM loss), consensus ($3.4MM loss) and prior quarter ($3.0MM loss), as the company invests in the SavvyWire launch.
Updates on SavvyWire. A full market release of SavvyWire is expected in the coming weeks following the launch of a new software upgrade that greatly increases the functionality of SavvyWire. SavvyWire has now been used in over 1,500 procedures across 45 hospitals in North America (~15 hospitals added in the last 3 months) with robust demand from both new and existing accounts per management. Management expects to launch SavvyWire in 20 more accounts in the current qtr for a total of 65 hospitals by end FY23 (vs. previous guidance of 60 hospitals). OPS does not expect Teleflex's recently approved Wattson guidewire to have a material impact on SavvyWire performance and ramp-up as SavvyWire provides real-time hemodynamic information in addition to pacing and valve delivery.
Outlook. Management expects sequential revenue growth for FQ4 and anticipates further improvement in GMs over the medium term as revenues from the regions with direct sales forces increase along with growth in SavvyWire revenues. The company noted that it is investing in products that might come to the market in the next 24 months. Management expects SavvyWire approval in Europe in CY23.