Axonics, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved net revenue of $116.2 million for the three months ended September 30, 2024, marking a 24.8% increase from $93.1 million in the same period of 2023. For the nine months ended September 30, 2024, net revenue reached $322.2 million, up 25.5% from $256.6 million year-over-year. This growth was primarily driven by increased sales of its sacral neuromodulation (SNM) systems and Bulkamid products.
Gross profit for the third quarter of 2024 was $89.7 million, reflecting a gross margin of 77.2%, an improvement from 74.2% in the prior year. However, total operating expenses rose significantly, totaling $95.9 million for the quarter, compared to $69.8 million in Q3 2023, largely due to increased general and administrative costs, which doubled to $23.8 million. Research and development expenses also surged by 65.2% to $13.5 million.
Despite the revenue growth, Axonics reported a loss from operations of $6.3 million for the third quarter, compared to a loss of $0.7 million in the same quarter of 2023. The net loss for the quarter was minimal at $21,000, a stark contrast to a net income of $3.9 million in Q3 2023. For the nine-month period, the net loss narrowed to $12.2 million from $12.7 million in the previous year.
The company’s cash and cash equivalents increased significantly to $239.5 million as of September 30, 2024, up from $104.8 million at the end of 2023. Total current assets also rose to $525.9 million, compared to $491.4 million at the end of the previous fiscal year. Axonics has no outstanding borrowings and expects its cash resources to be sufficient to fund operations for at least the next 12 months.
Strategically, Axonics is navigating a merger agreement with Boston Scientific Corporation, which was approved by stockholders in March 2024. The merger is subject to regulatory approvals and is expected to convert each share of common stock into $71.00 in cash. Additionally, the company is involved in arbitration proceedings with the Alfred Mann Foundation regarding a license agreement, which has led to the establishment of a restricted cash escrow account.
Overall, while Axonics has demonstrated strong revenue growth and improved cash position, it continues to face challenges with rising operating expenses and ongoing legal matters.
About Axonics, Inc.
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