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Inari Medical Reports Third Quarter 2023 Financial Results

November 1, 2023

IRVINE, Calif., Nov. 01, 2023 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”), a medical device company with a mission to treat and transform the lives of patients suffering from venous and other diseases, today reported financial results for its third quarter ended September 30, 2023.

Third Quarter Financial and Recent Business Highlights

  • Generated revenue of $126.4 million in Q3 of 2023, up 31.4% over the same quarter last year.
  • Delivered net income of $3.2 million in Q3 of 2023, compared to a $10.2 million net loss in the same quarter of last year.
  • Ended the quarter with cash and investments of $351.3 million.  
  • Announced an expansion of our patient-focused mission with agreement to acquire LimFlow.

“Our robust third quarter performance was driven by strong underlying procedural growth and crisp execution across all our growth drivers,” said Drew Hykes, CEO of Inari Medical. “We saw meaningful contributions from our core VTE business, new product launches, and international geographies. Our disciplined investment approach delivered positive operating income for the first time since the fourth quarter of 2021. Our core business is thriving, and we are confident in our ability to continue to grow sustainably for years to come. Most importantly, we remain fully committed to continuing to advance our mission of addressing major unmet needs for patients. Our acquisition of LimFlow is aligned with this objective.”

Third Quarter 2023 Financial Results
Revenue was $126.4 million for the third quarter of 2023, up 31.4% compared to $96.2 million for the third quarter of 2022. The increase over the prior year quarter was driven primarily by increased adoption of our procedures, new products, and global commercial expansion.

Gross profit was $111.9 million for the third quarter of 2023, compared to $85.1 million for the same period of 2022. Gross margin remained flat at 88.5% for the third quarter of 2023 and the same period in the prior year.

Operating expenses for the third quarter of 2023 were $109.8 million, compared to $94.9 million for the third quarter of 2022. The increase was mainly driven by personnel-related expenses, including stock-based compensation, as we increased headcount to fund the expansion of the commercial, research and development, clinical, and support organizations.

Operating income was $2.1 million in the third quarter of 2023, compared with a $9.8 million operating loss for the same period of the prior year.

Net income was $3.2 million for the third quarter of 2023 and net income per share was $0.06 on a weighted-average basic share count of 57.4 million and $0.05 on a weighted-average diluted share count of 58.6 million, compared to a net loss of $10.2 million and a net loss per share of $0.19 on a weighted-average basic and diluted share count of 53.5 million, in the same period of the prior year.

Full-Year 2023 Revenue Guidance
For the full year 2023, we are raising our revenue guidance to a range of $490 million to $493 million, an increase of $4.5 million at the midpoint from our prior guidance range of $482 million to $492 million.

Acquisition of LimFlow
In a separate press release issued today, Inari announced that it has entered into a definitive agreement to acquire LimFlow, S.A., a privately held pioneer in limb salvage for patients with chronic limb-threatening ischemia (CLTI). Inari’s press release announcing the transaction can be found on the Company’s investor relations website at ir.inarimedical.com.

Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the third quarter 2023 financial results and acquisition of LimFlow after market close on Wednesday, November 1, 2023 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live by dialing (844) 825-9789 for domestic callers or (412) 317-5180 for international callers. The live webinar and presentation may be accessed by visiting the Events Section of the Inari investor relations website at ir.inarimedical.com.

About Inari Medical, Inc.
Patients first. No small plans. Take care of each other. These are the guiding principles that form the ethos of Inari Medical. We are committed to improving lives in extraordinary ways by creating innovative solutions for both unmet and underrecognized health needs. In addition to our purpose-built products, we leverage our capabilities in education, clinical research, and program development to improve patient outcomes. We are passionate about our mission to establish our treatments as the standard of care for venous thromboembolism and beyond. We are just getting started.

Forward-Looking Statements
Statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include estimated full year 2023 revenue, expectations regarding our proposed acquisition of LimFlow, and utility of clinical data results, and are based on Inari’s current expectations, forecasts, and assumptions, are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2022, and in its other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.

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Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)
  Three Months Ended September
  Nine Months Ended September
  2023   2022   2023   2022  
Revenue $ 126,366     $ 96,204     $ 361,538     $ 275,700    
Cost of goods sold   14,477       11,064       42,062       31,378    
Gross profit   111,889       85,140       319,476       244,322    
Operating expenses              
Research and development   21,492       19,105       64,641       53,809    
Selling, general and administrative   88,284       75,833       259,570       212,721    
Total operating expenses   109,776       94,938       324,211       266,530    
Income (loss) from operations   2,113       (9,798 )     (4,735 )     (22,208 )  
Other income (expense)              
Interest income   4,202       618       12,899       882    
Interest expense   (43 )     (74 )     (127 )     (220 )  
Other (expense) income   (682 )     (59 )     (617 )     169    
Total other income   3,477       485       12,155       831    
Income (loss) before income taxes   5,590       (9,313 )     7,420       (21,377 )  
Provision for income taxes   2,428       840       4,391       2,092    
Net income (loss) $ 3,162     $ (10,153 )   $ 3,029     $ (23,469 )  
Other comprehensive income (loss)              
Foreign currency translation adjustments   (68 )     (406 )     (138 )     (814 )  
Unrealized gain (loss) on available-for-sale debt
  91       644       (1,869 )     271    
Total other comprehensive income (loss)   23       238       (2,007 )     (543 )  
Comprehensive income (loss) $ 3,185     $ (9,915 )   $ 1,022     $ (24,012 )  
Net income (loss) per share              
Basic $ 0.06     $ (0.19 )   $ 0.05     $ (0.45 )  
Diluted $ 0.05     $ (0.19 )   $ 0.05     $ (0.45 )  
Weighted average common shares used to
   compute net income (loss) per share
Basic   57,384,884       53,491,625       56,478,317       52,552,662    
Diluted   58,588,452       53,491,625       58,495,921       52,552,662    


Condensed Consolidated Balance Sheets
(in thousands, except share data)
  September 30,
  December 31,
Current assets      
Cash and cash equivalents $ 89,182     $ 60,222    
Short-term investments in debt securities   262,113       266,179    
Accounts receivable, net   69,595       58,611    
Inventories, net   40,227       32,581    
Prepaid expenses and other current assets   7,944       5,312    
Total current assets   469,061       422,905    
Property and equipment, net   21,243       21,655    
Operating lease right-of-use assets   49,065       50,703    
Deposits and other assets   9,466       8,889    
Total assets $ 548,835     $ 504,152    
Liabilities and Stockholders' Equity                
Current liabilities                
Accounts payable $ 10,091     $ 7,659    
Payroll-related accruals   41,305       38,955    
Accrued expenses and other current liabilities   13,040       8,249    
Operating lease liabilities, current portion   1,630       1,311    
Total current liabilities   66,066       56,174    
Operating lease liabilities, noncurrent portion   30,627       30,976    
Total liabilities   96,693       87,150    
Commitments and contingencies                
Stockholders' equity                
Preferred stock, $0.001 par value, 10,000,000 shares authorized,
   no shares issued and outstanding as of September 30, 2023 and
   December 31, 2022
Common stock, $0.001 par value, 300,000,000 shares authorized as
of September 30, 2023, and December 31, 2022; 57,506,462 and
54,021,656 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively
  58       54    
Additional paid in capital   497,063       462,949    
Accumulated other comprehensive (loss) income   (1,158 )     849    
Accumulated deficit   (43,821 )     (46,850 )  
Total stockholders' equity   452,142       417,002    
Total liabilities and stockholders' equity $ 548,835     $ 504,152