Invuity Reports 50 Percent Growth in Revenues in Q4

Invuity Inc. ended 2016 on a strong note.
 
Revenue was $9.4 million in the fourth quarter of 2016 (period ended Dec. 31), up 50 percent from revenue of $6.2 million in the fourth quarter of 2015 driven by an increase in active accounts and an increase in revenue per account. For the 2016 full year, revenue was $32.5 million, an increase of 54 percent over revenue of $21 million in 2015.
 
Gross margin for the fourth quarter and full-year 2016 was 74.3 percent and 72.8 percent, respectively, compared to 65.9 percent and 63.2 percent for the same periods in 2015. Gross margin expansion has been helped by the introduction of the company’s non-conductive polymer based retractors, and by overhead efficiencies created as a result of increased sales volumes.

Approximately 745 hospitals purchased Invuity devices in the fourth quarter of 2016, up from 530 hospitals in the fourth quarter of 2015. And, roughly 240,000 procedures have been performed using Invuity devices.
 
“We finished 2016 on a strong note, delivering 50 percent year-over-year growth in the fourth quarter,” said President and CEO Philip Sawyer. “In 2017, we will continue to drive toward our goal of leadership in minimal access surgery through consistent execution of our commercial strategies coupled with the introduction of innovative, disruptive products.”
 
Total operating expenses for the fourth quarter and full-year 2016 were $16 million and $62.3 million, respectively, compared to $13.7 million and $48.5 million in the prior year periods. The increase in operating expenses is due to continued investment in the company’s commercial platform, new product development costs and related increases in corporate infrastructure.
 
The net loss for the fourth quarter of 2016 was $9.6 million, or $0.56 loss per share, compared to a net loss of $10.1 million, or $0.76 loss per share, for the fourth quarter of 2015. The net loss for  2016 was $40.6 million, or $2.73 loss per share, compared to $37.6 million, or $4.94 loss per share, for 2015.
 
The company’s balance sheet as of Dec. 31, 2016, included total cash, cash equivalents and short term investments of $39 million.

Invuity reiterated its revenue guidance for 2017 in the range of $42 million to $44 million.
 
Invuity Inc. develops and markets advanced surgical devices to improve minimally invasive surgery. The company’s patented Intelligent Photonics technology delivers enhanced visualization which facilitates surgical precision, efficiency and safety. In addition, the company uses 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.