Outset Medical (OM) Q4 2023 earnings summary

Executive summary

• FY23 revenue increased 13.0% YoY to $130.4M; gross margin rose to 22.2% from 15.5%, while GAAP net loss widened to $172.8M from $163.0M.

• Recurring revenue exceeded 50% of FY23 revenue; the Tablo installed base grew 34% to 5,350 consoles, with consumable revenue growth of nearly 50%.

Financial highlights

• Q4 revenue was $30.5M, down 4.7% YoY; gross profit rose to $7.7M from $5.3M and gross margin expanded to 25.3% from 16.5%.

• FY23 gross profit was $29.0M versus $17.8M in FY22; non-GAAP gross margin reached 23.6%, up from 16.1%.

• FY23 GAAP net loss was $172.8M, or $3.48/share, versus $163.0M, or $3.38/share; non-GAAP net loss improved to $134.2M, or $2.70/share, from $135.8M, or $2.82/share.

Outlook and guidance

• FY24 revenue guidance reaffirmed at $145M–$153M, representing 12%–18% growth over FY23.

• FY24 non-GAAP gross margin expected in the low-30% range, exiting the year in the mid-30% range in Q4.