Silk Road Medical (SILK) investor relations material

Executive summary

• Revenue grew 13% year-over-year to $51.2 million for Q2 2024, driven by increased TCAR procedures and new product launches.

• Gross margin improved to 75% from 71% year-over-year, benefiting from favorable purchase price variances and production efficiencies.

• Net loss widened to $16.6 million ($0.42 per share) for Q2 2024, up from $13.5 million ($0.35 per share) in Q2 2023, primarily due to higher SG&A expenses.

• Silk Road Medical entered into a definitive agreement to be acquired by Boston Scientific for $27.50 per share in cash, with the transaction expected to close in the second half of 2024.

• Cash, cash equivalents, and investments totaled $186.2 million as of June 30, 2024.

Financial highlights

• Q2 2024 revenue: $51.2 million, up 13% year-over-year; six-month revenue: $99.7 million, up 17%.

• Gross profit for Q2 2024: $38.5 million (75% margin); six-month gross profit: $75.0 million (75% margin).

• Operating loss for Q2 2024: $17.2 million; net loss: $16.6 million ($0.42 per share).

• Operating expenses increased 20% year-over-year to $55.7 million, driven by higher R&D and SG&A costs.

• Adjusted EBITDA loss narrowed to $1.1 million from $3.4 million in Q2 2023.

Outlook and guidance

• Management expects continued revenue growth driven by increased TCAR adoption, new product launches, and international expansion.

• Gross margin is expected to show modest improvement for full-year 2024 compared to 2023, despite inflationary and labor cost pressures.

• The Boston Scientific acquisition is anticipated to close in the second half of 2024, subject to regulatory and stockholder approvals.

• Prior full-year 2024 financial guidance withdrawn due to the proposed acquisition by Boston Scientific.