Invuity’s First-Quarter Revenue Skyrockets 41 Percent

The first quarter of 2017 was a profitable one for Invuity Inc.

Revenue jumped 41 percent to $9 million in the three months ended March 31. Gross margin of 76.7 percent improved significantly from gross margin of 67.1 percent in Q1 2016. In addition, roughly 770 hospitals purchased Invuity devices in the first quarter of 2017, up from 555 hospitals in the first quarter of 2016.

Approximately 269,000 procedures have been performed using Invuity devices.

The company also completed a debt agreement that increases borrowing capacity to up to $50 million and provides additional financial flexibility.
 
“We are off to a solid start to 2017. In the first quarter we achieved strong 41 percent revenue growth, continued to execute on our commercial strategies and enhanced our financial position with a new debt agreement,” said President and CEO Philip Sawyer.  “The PhotonBlade launch is proceeding according to plan and we have received very positive feedback from surgeons who believe that this product has the potential to be highly disruptive in the market.”
 
Gross margin for the first quarter improved due partly to the introduction of Invuity’s non-conductive polymer based retractors and overhead efficiencies created as a result of increased sales volumes.
 
Total operating expenses for the first quarter were $17.3 million, respectively, compared to $15.9 million in the prior year period.
 
The net loss for the first quarter of 2017 was $13.2 million, or 78 cents loss per share, compared to a net loss of $12.1 million, or 90 cents loss per share, for the first quarter of 2016. This includes a charge of $2.3 million related to the prepayment of the company’s old term loan, which was prepaid in full in connection with the recently completed debt financing.
 
Invuity’s balance sheet as of March 31 included total cash, cash equivalents and short term investments of $34.5 million.
 
The new debt facility consists of a $30 million term loan divided in two tranches. The first tranche of $20 million was funded upon closing and the additional $10 million may be drawn down prior to Dec. 31, 2018, provided that the company achieves a certain revenue milestone. The new agreement also consists of a $10 million revolving credit facility that may be increased to $20 million at a later date at Invuity’s request and with approval from the lender.
 
Invuity is reiterating its revenue guidance for 2017 in the range of $42 million to $44 million.
 
Invuity Inc. develops and markets advanced surgical devices to improve the ability of physicians to perform minimal access surgery through smaller and hidden incisions. The company’s patented Intelligent Photonics technology delivers enhanced visualization which facilitates surgical precision, efficiency and safety. In addition, the company utilizes comprehensive strategic marketing programs to create stronger institutional partnerships. Clinical applications include women’s health, encompassing breast cancer and breast reconstruction surgery, gynecology and thyroid surgery.  Additional applications include procedures for electrophysiology, spine, orthopedic, cardiothoracic, and general surgery. Invuity is headquartered in San Francisco, Calif.