Establishment Labs Holdings Inc. (ESTA) Bundle
A Brief History of Establishment Labs
Establishment Labs Holdings Inc. (NASDAQ: ESTA) is a global medical technology company that focuses on improving women’s health and wellness, primarily through innovative solutions in breast aesthetics and reconstruction. Founded in 2010, the company has established itself as a leader in the Femtech sector, delivering nearly four million Motiva® devices to healthcare professionals across over 85 countries.
Company Growth and Product Development
Establishment Labs has continually expanded its product offerings, including the Motiva Flora® tissue expander, which is the first regulatory-approved expander with an integrated port utilizing radio-frequency technology. This product is particularly significant for improving outcomes in breast reconstruction following cancer treatments.
Financial Performance
As of September 30, 2024, Establishment Labs reported total revenue of $40.2 million for the third quarter, an increase from $38.5 million in the same quarter of 2023. The gross profit stood at $25.7 million, representing a gross profit margin of 63.9% compared to 67.7% in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $40.2 million | $38.5 million |
| Gross Profit | $25.7 million | $26.1 million |
| Gross Profit Margin | 63.9% | 67.7% |
| Operating Expenses | $38.9 million | $47.1 million |
| Net Loss | ($16.7 million) | ($29.3 million) |
Operational Highlights
The company has made significant strides in reducing operational costs. In Q3 2024, total operating expenses decreased to $38.9 million from $47.1 million a year prior. Notably, sales, general and administrative (SG&A) expenses fell to $34.1 million, down from $40.0 million in Q3 2023.
Recent Developments
On September 26, 2024, Establishment Labs received FDA approval for its Motiva Implants, a pivotal moment that is expected to drive substantial growth in the U.S. market. The company anticipates U.S. revenue to exceed $35 million in 2025. Additionally, a pro forma cash balance of approximately $114.0 million was reported following the drawing of $25 million from the Oaktree credit facility and a $50 million stock sale on November 7, 2024.
| Key Developments | Date |
|---|---|
| FDA Approval of Motiva Implants | September 26, 2024 |
| Pro Forma Cash Balance | $114.0 million |
| Expected U.S. Revenue for 2025 | Exceeding $35 million |
Future Outlook
Looking ahead, Establishment Labs is focused on global market leadership with expectations for sustained double-digit revenue growth and emerging profitability. The company continues to invest in operational efficiencies and product innovations to enhance its competitive position in the medical technology sector.
A Who Owns Establishment Labs Holdings Inc. (ESTA)
Shareholder Composition
As of 2024, the ownership structure of Establishment Labs Holdings Inc. (NASDAQ: ESTA) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Oaktree Capital Management | 12.5% | 3,531,250 |
| BlackRock, Inc. | 8.9% | 2,500,000 |
| Vanguard Group, Inc. | 7.6% | 2,145,000 |
| R-Bridge Fund (CBC Group) | 5.3% | 1,500,000 |
| Other Institutional Investors | 30.2% | 8,500,000 |
| Retail Investors | 35.5% | 10,000,000 |
Recent Financial Performance
For the third quarter of 2024, Establishment Labs reported the following financial metrics:
- Total Revenue: $40.2 million
- Net Loss: $16.7 million
- Cash Balance: $39.7 million
- Adjusted EBITDA Loss: $7.0 million
- Operating Expenses: $38.9 million
Market Trends and Analyst Ratings
The stock performance of Establishment Labs has shown volatility, influenced by broader market trends in the medical technology sector. Analysts have set price targets reflecting a range of expectations based on market conditions and company performance:
| Analyst Firm | Rating | Price Target |
|---|---|---|
| Goldman Sachs | Buy | $35.00 |
| Morgan Stanley | Hold | $22.00 |
| JP Morgan | Neutral | $28.00 |
Future Outlook
Establishment Labs has updated its revenue guidance for 2024 to a range of $165 million to $168 million, down from the previous estimate of $174 million to $184 million. This adjustment reflects anticipated challenges in specific markets, particularly Brazil, but also includes optimism regarding the U.S. market expansion following the FDA approval of Motiva Implants on September 26, 2024.
The company is expected to continue leveraging its recent capital raises and strategic partnerships to enhance its market position. The pro forma cash balance is projected to be approximately $114.0 million, which includes $50.0 million from a recent direct offering.
Establishment Labs Holdings Inc. (ESTA) Mission Statement
Establishment Labs Holdings Inc. is committed to advancing women’s health and wellness through innovative and scientifically driven solutions in breast aesthetics and reconstruction. The company aims to provide cutting-edge medical technologies that enhance patient outcomes and satisfaction.
Financial Overview as of September 30, 2024
Establishment Labs reported a revenue of $40.2 million for the third quarter of 2024, an increase from $38.5 million in the same quarter of 2023. The gross profit for the quarter was $25.7 million, representing a gross margin of 63.9%.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $40.2 million | $38.5 million |
| Gross Profit | $25.7 million | $26.1 million |
| Gross Margin | 63.9% | 67.7% |
| Total Operating Expenses | $38.9 million | $47.1 million |
| Net Loss | ($16.7 million) | ($29.3 million) |
Operational Highlights
In the third quarter, the company reported a significant decrease in total operating expenses, which amounted to $38.9 million, a reduction of $8.2 million compared to the previous year. Sales, general and administrative expenses were $34.1 million, down from $40.0 million.
Research and Development
Research and development expenses totaled $4.8 million for Q3 2024, compared to $7.1 million in Q3 2023. This decrease was largely attributed to personnel cost reductions.
Cash Position
As of September 30, 2024, Establishment Labs had a cash balance of $39.7 million. The company anticipates a pro forma cash balance of approximately $114.0 million following additional financing activities, including a $25.0 million draw from the Oaktree credit facility and $50.0 million from a recent stock sale.
| Cash Metrics | Amount |
|---|---|
| Cash Balance (Sept 30, 2024) | $39.7 million |
| Pro Forma Cash Balance | $114.0 million |
| Recent Stock Sale | $50.0 million |
| Oaktree Credit Facility Draw | $25.0 million |
Market Position and Future Outlook
Establishment Labs has positioned itself as a leader in the Femtech market, with nearly four million Motiva® devices delivered globally since 2010. The company continues to expand its reach, particularly in the U.S. market, where expected revenue is projected to exceed $35 million in 2025.
The company is also actively pursuing growth opportunities, with a revised revenue guidance for 2024 set between $165 million and $168 million, down from previous estimates of $174 million to $184 million.
Regulatory Approvals
On September 26, 2024, the FDA granted approval for Motiva Implants, marking a significant milestone for the company and enhancing its product offerings in the U.S. market.
Conclusion
Establishment Labs is focused on leveraging its innovative technologies to enhance women's health, backed by strong financial performance and strategic market positioning.
How Establishment Labs Holdings Inc. (ESTA) Works
Company Overview
Establishment Labs Holdings Inc. is a global medical technology company that focuses on women's health and wellness, particularly in breast aesthetics and reconstruction. The company is known for its innovative products, including the Motiva® implant, which has been delivered to nearly four million patients since its inception in 2010.
Financial Performance
As of the third quarter of 2024, Establishment Labs reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue | $40,227,000 | $38,506,000 | $121,511,000 | $133,591,000 |
| Gross Profit | $25,717,000 | $26,052,000 | $79,033,000 | $86,392,000 |
| Operating Expenses | $38,856,000 | $47,090,000 | $110,350,000 | $129,303,000 |
| Loss from Operations | ($13,139,000) | ($21,038,000) | ($31,317,000) | ($42,911,000) |
| Net Loss | ($16,682,000) | ($29,273,000) | ($50,065,000) | ($57,960,000) |
| Basic and Diluted Net Loss per Share | ($0.59) | ($1.12) | ($1.80) | ($2.28) |
Balance Sheet Data
As of September 30, 2024, the balance sheet data is as follows:
| Assets | Amount (in thousands) |
|---|---|
| Cash | $39,697 |
| Accounts Receivable | $67,251 |
| Inventory | $67,122 |
| Total Current Assets | $182,953 |
| Property and Equipment | $79,423 |
| Total Assets | $282,685 |
| Liabilities and Shareholders’ Equity | Amount (in thousands) |
|---|---|
| Accounts Payable | $34,397 |
| Total Current Liabilities | $50,498 |
| Note Payable | $194,360 |
| Total Liabilities | $249,975 |
| Total Shareholders’ Equity | $32,710 |
| Total Liabilities and Shareholders’ Equity | $282,685 |
Operational Highlights
In the third quarter of 2024, Establishment Labs achieved several operational milestones:
- FDA Approval: The Motiva Implants received FDA approval on September 26, 2024.
- Revenue Guidance: The company updated its 2024 revenue guidance to $165 million to $168 million, down from the previous estimate of $174 million to $184 million.
- Cash Management: As of September 30, 2024, the company had a cash balance of $39.7 million, with a pro forma cash balance of approximately $114.0 million after recent financing activities.
- Market Expansion: The company added over 250 new accounts in the U.S. within three weeks of launching the Motiva product line, with plans to increase its sales force from 32 to 40 representatives by year-end.
Research and Development
The company's investment in research and development has been a key focus, with R&D expenses recorded as follows:
| R&D Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Amount (in thousands) | $4,801 | $7,128 |
These expenses represent a commitment to innovation and the development of new products in the Femtech sector.
Market Position
Establishment Labs operates in over 85 countries and holds more than 200 patent applications across various product categories. The company aims to establish a leading position in the global market for breast aesthetics and reconstruction technologies.
Future Outlook
Establishment Labs anticipates significant growth opportunities, particularly in the U.S. market, where projected revenue is expected to exceed $35 million in 2025.
How Establishment Labs Holdings Inc. (ESTA) Makes Money
Revenue Streams
Establishment Labs generates revenue primarily through the sale of medical devices, particularly breast implants and tissue expanders. For the third quarter of 2024, the company reported total revenue of $40.2 million, an increase from $38.5 million in the same quarter of 2023.
| Period | Revenue | Cost of Revenue | Gross Profit | Gross Profit Margin |
|---|---|---|---|---|
| Q3 2024 | $40,227,000 | $14,510,000 | $25,717,000 | 63.9% |
| Q3 2023 | $38,506,000 | $12,454,000 | $26,052,000 | 67.7% |
| 9M 2024 | $121,511,000 | $42,478,000 | $79,033,000 | 65.0% |
| 9M 2023 | $133,591,000 | $47,199,000 | $86,392,000 | 64.7% |
Product Offerings
The company's flagship products include the Motiva® breast implants and the Motiva Flora® tissue expander. The FDA approved the Motiva implants on September 26, 2024, which is expected to drive significant revenue growth in the U.S. market, projected to exceed $35 million in 2025.
Operating Expenses
For Q3 2024, total operating expenses amounted to $38.9 million, a reduction from $47.1 million in Q3 2023. This decline was attributed to cost reduction initiatives, including a decrease in sales, general and administrative expenses (SG&A) to $34.1 million from $40.0 million the previous year.
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales, General & Administrative (SG&A) | $34,055,000 | $39,962,000 |
| Research & Development (R&D) | $4,801,000 | $7,128,000 |
| Total Operating Expenses | $38,856,000 | $47,090,000 |
Net Loss
Establishment Labs reported a net loss of $16.7 million for the third quarter of 2024, an improvement compared to a net loss of $29.3 million in Q3 2023. The loss from operations for Q3 2024 was $13.1 million, down from $21.0 million in the prior year.
Cash Position and Financing
As of September 30, 2024, the company's cash balance was $39.7 million. Following a private placement offering completed on January 9, 2024, the pro forma cash balance is approximately $114.0 million, which includes $25.0 million from the Oaktree credit facility and $50.0 million from a registered direct offering.
Market Expansion and Future Outlook
Establishment Labs is actively expanding its market presence, particularly in the U.S. Following the successful launch of Motiva, the company has onboarded over 250 new accounts within three weeks, with plans to increase the sales team to 40 representatives by year-end 2024.
Financial Performance Summary
The following table summarizes key financial metrics for Establishment Labs:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $16,682,000 | $29,273,000 |
| Loss from Operations | $13,139,000 | $21,038,000 |
| Adjusted EBITDA Loss | $7,017,000 | $16,278,000 |
| Cash Balance | $39,697,000 | $40,035,000 |
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Resources:
- Establishment Labs Holdings Inc. (ESTA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Establishment Labs Holdings Inc. (ESTA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Establishment Labs Holdings Inc. (ESTA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.