Glaukos (GKOS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 net sales of $95.7 million, up 19% year-over-year on a reported basis and 20% on a constant currency basis, driven by strong glaucoma segment growth and early iDose TR contributions.

• Raised full-year 2024 net sales guidance to $370–$376 million from $357–$365 million.

• Gross margin reached 76% (GAAP) and 82%-84% (non-GAAP); iDose facility currently a margin headwind but expected to improve as scale increases.

• Net loss widened to $53.9 million (GAAP), or ($1.06) per share, mainly due to higher SG&A, R&D, and inducement charges from convertible note exchange.

• Ended Q2 2024 with $266.4 million in cash, cash equivalents, and short-term investments.

Financial highlights

• Q2 2024 net sales: $95.7 million (+19% YoY); glaucoma segment sales: $75.9 million (+23% YoY); corneal health sales: $19.8 million (+7% YoY).

• Gross margin: 76% (GAAP), 82%-84% (non-GAAP); prior year: 75% (GAAP), 82% (non-GAAP).

• Operating loss: $30.0 million (GAAP); net loss: $53.9 million (GAAP), $26.3 million (non-GAAP).

• SG&A expenses increased 25% YoY to $66.2 million (GAAP); R&D expenses up 4% to $34.4 million.

• Cash, cash equivalents, and short-term investments totaled $266.4 million at quarter end.

Outlook and guidance

• Full-year 2024 net sales guidance raised to $370–$376 million, based on latest FX rates.

• U.S. glaucoma expected to deliver high-20s to nearly 30% year-over-year growth for 2024.

• International glaucoma business expected to deliver low- to mid-teens growth for the year.

• Cornea business projected to deliver low single-digit growth for 2024.

• Cash flow break-even targeted for 2025 as iDose ramps up.