Glaukos (GKOS) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net sales of $96.7 million, up 24% year-over-year, driven by strong U.S. and international glaucoma franchises, iDose TR adoption, and corneal health segment growth.

• Raised full-year 2024 net sales guidance to $377M–$379M from previous $370M–$376M, reflecting robust performance and confidence in continued growth.

• Net loss narrowed to $21.4 million ($0.39/share) from $30.4 million ($0.63/share) in Q3 2023, reflecting improved operating leverage.

• Continued advancement of novel, dropless platform technologies and successful global execution of strategic plans.

• Cash, cash equivalents, short-term investments, and restricted cash totaled $267.2 million as of September 30, 2024.

Financial highlights

• Q3 2024 consolidated net sales: $96.7M (+24% YoY); glaucoma net sales: $76.0M (+30% YoY); corneal health net sales: $20.6M (+5% YoY).

• Gross margin for Q3 was 77% GAAP (non-GAAP: 82%-83%), with iDose TR a modest headwind but expected to become accretive by late 2025.

• Net loss for Q3 2024: $21.4M (EPS: -$0.39); non-GAAP net loss: $15.2M (EPS: -$0.28).

• SG&A expenses for Q3 2024: $64.0M (+18% YoY); R&D expenses: $34.7M (+4% YoY).

• Operating expense growth guided at 10% for 2024, with seasonal Q4 step-up expected.

Outlook and guidance

• Full-year 2024 net sales guidance raised to $377M–$379M, reflecting continued acceleration in U.S. glaucoma and iDose TR adoption.

• Expect continued U.S. glaucoma acceleration in Q4 and 2025, with methodical expansion into commercial and Medicare Advantage coverage.

• International glaucoma growth expected to moderate in Q4 due to currency headwinds and increased competition.

• Corneal health franchise anticipated to be down year-over-year in Q4 due to MDRP, with growth resuming in 2025.

• Epioxa NDA submission planned by end of 2024, with potential for rapid adoption post-approval.