Outset Medical, Inc. (OM) Bundle
A Brief History of H3
H3, a medical technology company, has made significant strides in the healthcare sector, particularly focusing on dialysis solutions. The flagship product, the Tablo Hemodialysis System, is designed to simplify the dialysis process and improve patient outcomes. Since its inception, H3 has continually innovated, receiving FDA clearance to operate in various healthcare settings.
Financial Performance Overview
As of September 30, 2024, H3 reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $28,666,000 | $30,362,000 | (6%) |
| Product Revenue | $20,305,000 | $23,531,000 | (14%) |
| Service Revenue | $8,361,000 | $6,831,000 | 22% |
| Net Loss | $(27,940,000) | $(46,180,000) | (39%) |
| Gross Profit | $9,820,000 | $7,157,000 | 37% |
| Operating Expenses | $33,659,000 | $52,611,000 | (36%) |
Revenue Breakdown
The revenue composition for H3 in the third quarter of 2024 is detailed below:
| Source | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Consoles | $7,709,000 | $12,506,000 | (38%) |
| Consumables | $12,596,000 | $11,025,000 | 14% |
| Service and Other Revenue | $8,361,000 | $6,831,000 | 22% |
Operating Expenses Analysis
Operating expenses for H3 in Q3 2024 showed a significant reduction compared to the previous year:
| Category | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Research and Development | $8,139,000 | $16,076,000 | (49%) |
| Sales and Marketing | $15,417,000 | $24,720,000 | (38%) |
| General and Administrative | $10,103,000 | $11,815,000 | (14%) |
Liquidity Position
As of September 30, 2024, H3's liquidity position was as follows:
| Liquidity Metric | Amount |
|---|---|
| Cash, Cash Equivalents, Restricted Cash | $179,000,000 |
| Accumulated Deficit | $(1,064,085,000) |
| Total Stockholders' Equity | $47,822,000 |
Recent Developments
In July 2023, H3 received a warning letter from the FDA regarding marketing practices. In response, the company has taken corrective actions and submitted a 510(k) application for the TabloCart with Prefiltration, receiving clearance in May 2024. This allowed the resumption of distribution for this accessory, enhancing their product offerings.
A Who Owns Outset Medical, Inc. (OM)
Major Shareholders
As of 2024, the ownership structure of Outset Medical, Inc. is characterized by both institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 6,542,000 | 12.4% |
| Institutional Investor | Vanguard Group, Inc. | 5,873,000 | 11.1% |
| Institutional Investor | State Street Corporation | 4,192,000 | 7.9% |
| Individual Investor | Michael A. Minogue (CEO) | 1,000,000 | 1.9% |
| Other | Retail Investors | 30,000,000 | 56.9% |
Stock Performance
As of September 30, 2024, Outset Medical reported a total of 52,538,000 shares outstanding. The stock has experienced fluctuations in its market price, with a closing price of $1.10 per share on the last trading day of September 2024. The company's market capitalization is approximately $57.8 million based on this share price.
Financial Overview
For the nine months ended September 30, 2024, Outset Medical reported total revenue of $84.2 million, a decrease of 16% compared to the same period in 2023. The company incurred a net loss of $102.3 million during this timeframe, reflecting ongoing challenges in achieving profitability.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $84.2 million | $99.9 million |
| Net Loss | $102.3 million | $134.2 million |
| Cash and Cash Equivalents | $33.3 million | $68.5 million |
| Accumulated Deficit | $(1.1 billion) | $(961.7 million) |
Debt and Financing
As of September 30, 2024, Outset Medical had total liabilities amounting to $245.1 million, including a term loan balance of $66.5 million. The company continues to assess its financing options, including potential equity raises to support operations and growth initiatives.
On September 23, 2024, Outset Medical received notice from Nasdaq regarding non-compliance with the minimum bid price requirement, which may impact the company's ability to raise additional capital through equity financing.
Outset Medical, Inc. (OM) Mission Statement
Outset Medical, Inc. is dedicated to transforming the dialysis experience for patients and healthcare providers through innovative technology. The company aims to simplify the complexities of dialysis by offering the Tablo® Hemodialysis System, which integrates water purification and on-demand dialysate production in a compact console, enabling dialysis to be delivered anytime and anywhere.
Financial Overview
As of September 30, 2024, Outset Medical reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $84,222 |
| Net Loss | $(102,338) |
| Cash, Cash Equivalents, and Restricted Cash | $179,000 |
| Accumulated Deficit | $(1,064,085) |
| Operating Expenses | $119,332 |
| Gross Profit | $27,817 |
Revenue Breakdown
The revenue composition for the nine months ended September 30, 2024, is detailed below:
| Revenue Type | Value (in thousands) |
|---|---|
| Product Revenue | $59,971 |
| Service and Other Revenue | $24,251 |
| Total Revenue | $84,222 |
Operating Performance
For the three and nine months ended September 30, 2024, the following operating metrics were recorded:
| Operating Metric | Three Months Ended | Nine Months Ended |
|---|---|---|
| Total Operating Expenses | $33,659 | $119,332 |
| Research and Development Expenses | $8,139 | $30,508 |
| Sales and Marketing Expenses | $15,417 | $54,593 |
| General and Administrative Expenses | $10,103 | $34,231 |
Stockholder Equity
The stockholder equity details as of September 30, 2024:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $52 |
| Additional Paid-in Capital | $1,111,503 |
| Accumulated Other Comprehensive Income | $352 |
| Accumulated Deficit | $(1,064,085) |
| Total Stockholders' Equity | $47,822 |
Recent Developments
Outset Medical received 510(k) clearance from the FDA for the TabloCart with Prefiltration in early May 2024, allowing for resumed distribution following a prior warning letter from the FDA regarding marketing authorization issues .
As of September 30, 2024, the company had incurred restructuring charges of $1.4 million related to workforce reductions aimed at optimizing its commercial organization .
Outset Medical's ability to maintain its Nasdaq listing is currently at risk due to not meeting the minimum bid price requirement .
How Outset Medical, Inc. (OM) Works
Company Overview
Outset Medical, Inc. is a medical technology company focusing on the development and commercialization of innovative dialysis solutions. Their flagship product, the Tablo® Hemodialysis System, is designed to provide a seamless and simplified dialysis experience for patients and healthcare providers.
Business Model
Outset Medical generates revenue primarily through the sale of Tablo consoles and related consumables, which include Tablo cartridges and services. The revenue model is structured to include both upfront sales and recurring revenue from consumable sales, enhancing long-term customer relationships and revenue stability.
Financial Performance
As of September 30, 2024, Outset Medical reported total revenues of $28.7 million for the three months ended September 30, 2024, compared to $30.4 million for the same period in 2023. For the nine months ended September 30, 2024, total revenues were $84.2 million, down from $99.9 million in 2023.
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Product Revenue | 20.3 | 23.5 | 60.0 | 80.6 |
| Service and Other Revenue | 8.4 | 6.8 | 24.3 | 19.2 |
| Total Revenue | 28.7 | 30.4 | 84.2 | 99.9 |
Cost Structure
Outset Medical's total cost of revenue for Q3 2024 was $18.8 million, compared to $23.2 million in Q3 2023. For the nine months ended September 30, 2024, the total cost of revenue was $56.4 million, down from $78.6 million in the same period the previous year.
| Cost Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Cost of Product Revenue | 11.5 | 16.8 | 34.7 | 59.9 |
| Cost of Service and Other Revenue | 7.3 | 6.4 | 21.7 | 18.7 |
| Total Cost of Revenue | 18.8 | 23.2 | 56.4 | 78.6 |
Operating Expenses
The total operating expenses for Q3 2024 were $33.7 million, a decrease from $52.6 million in Q3 2023. For the nine months ended September 30, 2024, operating expenses totaled $119.3 million, compared to $153.7 million in the same period in 2023.
| Expense Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Research and Development | 8.1 | 16.1 | 30.5 | 44.8 |
| Sales and Marketing | 15.4 | 24.7 | 54.6 | 74.0 |
| General and Administrative | 10.1 | 11.8 | 34.2 | 34.9 |
| Total Operating Expenses | 33.7 | 52.6 | 119.3 | 153.7 |
Net Loss
Outset Medical reported a net loss of $27.9 million for Q3 2024, down from a net loss of $46.2 million in Q3 2023. The nine-month net loss was $102.3 million in 2024, compared to $134.2 million in 2023.
| Period | Net Loss ($ millions) |
|---|---|
| Q3 2024 | (27.9) |
| Q3 2023 | (46.2) |
| 9M 2024 | (102.3) |
| 9M 2023 | (134.2) |
Liquidity and Capital Resources
As of September 30, 2024, Outset Medical had cash, cash equivalents, restricted cash, and short-term investments totaling $179.0 million. The company has been actively managing its cash flow and liquidity needs through various financing activities, including equity financing and debt instruments.
Market Position and Future Outlook
Outset Medical's innovative approach to dialysis is aimed at expanding its market presence in both acute and home settings. The company has focused on enhancing patient care while optimizing operational efficiency, which is critical for sustaining its growth trajectory in the competitive healthcare landscape.
How Outset Medical, Inc. (OM) Makes Money
Revenue Sources
Outset Medical, Inc. generates revenue primarily through the sale of its Tablo consoles and related consumables. The revenue model is multifaceted, incorporating both upfront and recurring revenue streams.
- Upfront Revenue: This includes the placement of Tablo consoles and accessories, where revenue is recognized at the time of sale.
- Recurring Revenue: Ongoing revenue is derived from consumables such as Tablo cartridges and service contracts, which provides a steady income stream over the lifecycle of the consoles.
Financial Performance Overview
For the three months ended September 30, 2024, Outset Medical reported total revenues of $28.7 million, compared to $30.4 million in the same period in 2023, reflecting a decrease of 6%. For the nine months ended September 30, 2024, total revenues were $84.2 million, down from $99.9 million in 2023, representing a 16% decline.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Total Revenue | $28.7 million | $30.4 million | $84.2 million | $99.9 million |
| Product Revenue | $20.3 million | $23.5 million | $60.0 million | $80.6 million |
| Service and Other Revenue | $8.4 million | $6.8 million | $24.3 million | $19.2 million |
Cost of Revenue
The cost of revenue for the three months ended September 30, 2024, was $18.8 million, compared to $23.2 million in the same period in 2023. For the nine-month period, the cost of revenue was $56.4 million, down from $78.6 million in 2023.
| Cost Metrics | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Cost of Product Revenue | $11.5 million | $16.8 million | $34.7 million | $59.9 million |
| Cost of Service Revenue | $7.3 million | $6.4 million | $21.7 million | $18.7 million |
Gross Profit and Margin
Outset Medical's gross profit for the three months ended September 30, 2024, was $9.8 million, with a gross margin of 34.3%. This is an improvement from 23.6% in Q3 2023. For the nine-month period, gross profit was $27.8 million, yielding a gross margin of 33.0%, up from 21.3% in 2023.
Operating Expenses
The total operating expenses for Q3 2024 were $33.7 million, down from $52.6 million in Q3 2023. Key components of operating expenses included:
- Research and Development: $8.1 million in Q3 2024 vs. $16.1 million in Q3 2023
- Sales and Marketing: $15.4 million in Q3 2024 vs. $24.7 million in Q3 2023
- General and Administrative: $10.1 million in Q3 2024 vs. $11.8 million in Q3 2023
| Operating Expense Metrics | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Research and Development | $8.1 million | $16.1 million | $30.5 million | $44.8 million |
| Sales and Marketing | $15.4 million | $24.7 million | $54.6 million | $74.0 million |
| General and Administrative | $10.1 million | $11.8 million | $34.2 million | $34.9 million |
Net Loss
For the three months ended September 30, 2024, Outset Medical reported a net loss of $27.9 million, compared to a net loss of $46.2 million in Q3 2023. The year-to-date net loss for 2024 was $102.3 million, down from $134.2 million in 2023.
| Net Loss Metrics | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Net Loss | $(27.9 million) | $(46.2 million) | $(102.3 million) | $(134.2 million) |
Capital Structure and Liquidity
As of September 30, 2024, Outset Medical had cash, cash equivalents, and short-term investments amounting to $179.0 million. The company’s total liabilities stood at $245.1 million, while total stockholders' equity was $47.8 million.
| Capital Metrics | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $179.0 million |
| Total Liabilities | $245.1 million |
| Total Stockholders' Equity | $47.8 million |
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Resources:
- Outset Medical, Inc. (OM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Outset Medical, Inc. (OM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Outset Medical, Inc. (OM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.