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Mar 31, 2020
Establishment Labs Q1 2020 Earnings Report
Reported record first quarter sales and implemented measures to reduce expenses.
Key Takeaways
Establishment Labs reported a record first quarter with worldwide sales of $24.5 million, an 18% increase year-over-year. The company has taken measures to reduce expenses by approximately 20% in response to the COVID-19 impact and maintains a strong cash balance of $93.6 million.
Worldwide sales reached $24.5 million, reflecting 18% growth.
Breast implant sales grew by 23%, accounting for over 90% of total sales.
Cash balance stood strong at $93.6 million at the end of March.
Measures were enacted to reduce operating expenses and preserve cash due to COVID-19.
Forward Guidance
Due to the varying rates of breast implant procedures resuming across countries, the company has decided to forego providing full-year sales guidance. However, the company is seeing evidence of conditions beginning to improve in certain geographies with many procedures being rescheduled for the second half of the year.
Positive Outlook
- Breast implant procedures are being rescheduled for the second half of the year.
- Conditions are beginning to improve in certain geographies.
- Geographic diversity of revenue base.
- Company has successfully weathered challenges in the past.
- Company is well-positioned for continued growth and success.
Challenges Ahead
- Breast implant procedures are resuming at varying rates across countries.
- COVID-19 pandemic has delayed enrollment in the reconstruction cohorts for its Motiva pivotal trial, which could add at least six months to its timeline.
- Difficult to forecast 2020 sales.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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