NASDAQ$OM

Outset Medical Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Outset Medical's revenue decreased slightly year-over-year, but showed sequential growth. Gross margin improved compared to the prior year, and recurring revenue reached a record level. The company also increased its full year 2024 revenue guidance.

Outset Medical reported a slight decrease in revenue compared to Q3 2023, but experienced sequential growth from Q2 2024. The company saw improvements in gross margin and achieved record recurring revenue. They also increased revenue guidance for the full year.

  • Revenue for the third quarter was $28.7 million, a 5% increase compared to the second quarter and a 6% decrease from the third quarter of 2023.
  • Product revenue was $20.3 million, a 6% increase from the second quarter and a 14% decrease from the third quarter of 2023.
  • Recurring revenue from Tablo cartridges and service reached $21 million, a 4% increase from the second quarter and a 17% increase compared to the prior-year period.
  • Net loss was $27.9 million, or $(0.55) per share, compared to a net loss of $46.2 million, or $(0.93) per share, for the same period in 2023.

Headline financials

Total Revenue

$28.7M

Previous: $30.4M-5.6%
EPS

-$0.55

Previous: -$0.71+22.5%
Recurring Revenue

$18M

Previous: $17M+5.9%
Gross Margin

20.1%

Previous: 23.6%-14.8%
Non-GAAP Gross Margin

21.0%

No prior period
Non-GAAP Net Loss

$21M

No prior period
Capital Expenditures

-$869K

Previous: -$2.39M+63.6%
Free Cash Flow

-$28.8M

Previous: -$48.6M+40.7%
Net Income

-$27.9M

Previous: -$46.2M+39.5%
Operating Income

-$23.8M

Previous: -$45.5M+47.6%
Gross Profit

$9.82M

Previous: $7.16M+37.2%
Cash & Equivalents

$33.3M

Previous: $36.3M-8.3%
Total Assets

$293M

Previous: $308M-4.8%
R&D Expense

$8.14M

Previous: $16.1M-49.4%
Stock-Based Comp

$6.39M

Previous: $10.9M-41.4%

Revenue & EPS history

Outset Medical · Revenue · Quarterly

$28.7M

Q3 2024-5.6%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Outset Medical · $30.4M total across 2 segments · Q3 2023

  • Product Revenue
    $23.5M
  • Service and Other Revenue
    $6.83M

Forward guidance

Outset increased 2024 revenue guidance to approximately $112 million from prior guidance of approximately $110 million, and non-GAAP gross margin guidance to the mid-30% range from the low-to-mid 30% range.

Tailwinds

  • Increased 2024 revenue guidance to approximately $112 million.
  • Increased non-GAAP gross margin guidance to the mid-30% range.

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 2024

Historical avgQ3 2024

-2.7%

Avg return

Earnings day

-4.8%

Avg return

5 days after

+0.5%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+33.5%

Q1 2025

Best reaction

-69.6%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.2%-17.1%-2.3%
Q4 2025-16.3%-28.4%-28.3%
Q3 2025-48.6%-61.2%-64.5%
Q1 2025+33.5%+46.8%+78.3%
Q4 2024+2.1%-13.0%-28.7%
Q3 2024+23.7%+36.0%+91.4%
Q2 2024-69.6%-75.0%-86.1%
Q1 2024-13.7%-18.2%+18.7%
Q4 2023+1.8%+9.3%-40.6%
Q3 2023-13.6%-13.8%+33.7%
Q2 2023-14.6%-17.5%-31.8%
Q1 2023+8.3%+3.4%+15.4%
Q4 2022-6.5%-10.6%-30.5%
Q3 2022+20.2%+44.2%+82.5%
Q2 2022+21.8%+23.5%+18.4%
Q1 2022-13.2%-38.5%-39.5%
Q4 2021+9.5%+15.9%+22.6%
Q3 2021-0.1%-4.6%-22.9%
Q2 2021-2.5%-9.9%+21.1%
Q1 2020-5.6%-14.4%-16.7%
Q1 2021-9.1%-11.9%-17.6%
Q2 2020+6.0%+0.1%+12.2%
Q4 2020+12.5%+8.9%+18.4%
Q3 2020+5.5%+29.6%+8.4%
Q4 2019
Q3 2019
Q2 2019
Q1 2019

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