NASDAQ$ESTA

Establishment Labs Holdings Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2022.

Establishment Labs reported a strong third quarter in 2022, with worldwide sales reaching $38.2 million, a 31.7% increase year-over-year. The company has tightened its 2022 revenue guidance to a range of $158 million to $162 million, representing a 25% to 28% increase over 2021.

  • Third quarter worldwide sales reached $38.2 million, a 31.7% increase year-over-year.
  • Revenue guidance for 2022 tightened to a range of $158 million to $162 million, an increase of 25% to 28% over 2021.
  • Gross profit for the third quarter was 68.1% of revenue, compared to 67.6% for the same period in 2021.
  • Cash balance of $65.3 million as of September 30, 2022.

Headline financials

Total Revenue

$38.2M

Previous: $29M+31.7%
EPS (adj)

-$0.76

Previous: -$0.61-24.6%
Capital Expenditures

-$1.89M

Previous: -$2.67M+29.3%
Free Cash Flow

-$20.5M

Previous: -$17.3M-18.1%
Net Income

-$18.6M

Previous: -$14.7M-26.8%
Operating Income

-$10.5M

Previous: -$9.04M-16.3%
Gross Profit

$26M

Previous: $19.6M+32.7%
Cash & Equivalents

$65.3M

Previous: $64.6M+1.1%
Total Assets

$188M

Previous: $148M+26.5%
Stock-Based Comp

$2.92M

Previous: $3.06M-4.7%

Revenue & EPS history

Establishment Labs · Revenue · Quarterly

$38.2M

Q3 2022+31.7%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Establishment Labs expects strong financial results will continue into the fourth quarter and into 2023. The company is preparing for new opportunities, including launches of Motiva into the U.S. and China and the commercial introduction of Mia Femtech.

Tailwinds

  • Expect strong financial results will continue into the fourth quarter and into 2023.
  • Preparing for launches of Motiva into the U.S. and China
  • Commercial introduction of Mia Femtech expected in 1H 2023.
  • China approval and launch expected in 1H 2023.
  • Expect to submit Motiva Implants for U.S. FDA approval in Q4 2022

Headwinds

  • Foreign exchange expected to negatively impact 2022 revenue by approximately $6.5 million.
  • Net loss from operations for the third quarter was $10.5 million compared to a net loss of $9.0 million in the year ago period.
  • The increase in SG&A was primarily due to an increase in personnel and related costs due to increased headcount, an increase in sales and marketing expenses, as well as an increase in freight charges.
  • R&D expenses increased approximately $1.4 million to $5.3 million in the third quarter compared to $3.9 million for the same quarter a year ago.
  • Operating losses and investments in facility expansion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.4%

Avg return

30 days after

56%

18 / 32 earnings

Positive

+22.5%

Q3 2025

Best reaction

-26.0%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-4.3%+2.9%
Q4 2025-1.9%+5.0%-20.1%
Q3 2025+22.5%+37.0%+43.2%
Q1 2025+4.9%+5.1%+14.2%
Q4 2024+17.9%+28.1%+12.1%
Q3 2024-5.2%-13.2%-10.0%
Q2 2024+3.4%+20.6%+23.5%
Q1 2024+5.4%+4.2%-10.8%
Q4 2023+15.1%+19.6%+28.2%
Q3 2023-26.0%-36.1%-31.7%
Q2 2023-8.4%-12.0%-12.2%
Q1 2023+1.8%-1.6%-1.9%
Q4 2022+7.2%+10.3%+0.3%
Q3 2022-7.7%+11.1%+27.1%
Q2 2022-3.0%+1.3%-0.4%
Q1 2022-10.5%-10.1%+2.3%
Q4 2021+3.3%+1.6%+11.5%
Q3 2021-10.6%-14.3%-15.2%
Q2 2021+6.0%-3.7%-3.1%
Q1 2021-0.6%-1.8%+8.9%
Q4 2020+0.4%-6.8%+9.5%
Q3 2020+8.9%-0.4%+22.6%
Q2 2020+6.2%+7.3%+9.3%
Q1 2020+2.9%+0.5%+15.3%
Q4 2019+4.5%-16.4%+0.4%
Q3 2019-0.3%+0.5%+7.8%
Q2 2019-5.2%-10.6%-10.2%
Q1 2019+1.5%-0.3%-15.9%
Q4 2018-1.9%-4.9%-15.2%
Q3 2017+10.3%+4.5%-6.2%
Q3 2018+10.3%+4.5%-6.2%
Q2 2018-2.7%-2.9%-3.4%
Q4 2017
Q2 2017
Q1 2017

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