Outset Medical, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a decline in revenue and ongoing operational challenges. The company generated total revenue of $28.7 million in Q3 2024, a decrease of 6% from $30.4 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $84.2 million, down 16% from $99.9 million in the same period of the previous year. The decline in revenue was primarily driven by a significant drop in product revenue, which fell to $20.3 million in Q3 2024 from $23.5 million in Q3 2023, largely due to a $4.8 million decrease in console revenue.

Despite the revenue decline, Outset Medical reported an increase in gross profit, which reached $9.8 million in Q3 2024, compared to $7.2 million in Q3 2023. The gross margin improved by 10.7 percentage points, reflecting better cost management and operational efficiencies. Total operating expenses for Q3 2024 were $33.7 million, down 36% from $52.6 million in the prior year, contributing to a reduced loss from operations of $(23.8) million, an improvement from $(45.5) million in Q3 2023.

The net loss for Q3 2024 was $(27.9) million, compared to $(46.2) million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $(102.3) million, a decrease from $(134.2) million in the same period of 2023. The company’s accumulated deficit as of September 30, 2024, stood at approximately $1.1 billion.

Outset Medical's cash and cash equivalents decreased to $33.3 million as of September 30, 2024, down from $68.5 million at the end of 2023. The company reported net cash used in operating activities of $(99.8) million for the nine months ended September 30, 2024, an improvement from $(106.9) million in the same period of 2023. The company also raised $68.8 million through financing activities, primarily from borrowings under its SLR Term Loan Facility.

Strategically, Outset Medical is focusing on expanding its home dialysis market and optimizing operational efficiencies. The company has undertaken restructuring efforts, including a recent charge of $1.4 million related to its commercial organization. Additionally, it received a notice from Nasdaq regarding non-compliance with minimum bid price requirements, which could impact its listing status.

Overall, while Outset Medical is experiencing revenue challenges, it is making strides in reducing losses and managing expenses, positioning itself for future growth in the dialysis market.