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Outset Medical Reports Third Quarter 2020 Financial Results
Strong Quarter Driven by Accelerating Acute Market Penetration and Significant Margin Expansion SAN JOSE, Calif.--(BUSINESS WIRE)-- Outset Medical, Inc.
About this update from Outset Medical, Inc.
[{"type":"text","content":"\nStrong Quarter Driven by Accelerating Acute Market Penetration and Significant Margin Expansion\n\n SAN JOSE, Calif.--(BUSINESS WIRE)--\nOutset Medical, Inc. (Nasdaq: OM) (“Outset”), a medical technology company pioneering a first-of-its-kind technology to reduce the cost and complexity of dialysis, today reported financial results for the third quarter ended September 30, 2020.\n\nThird Quarter 2020 & Recent Highlights\n\n\nRecorded net revenue of $13.8 million in the third quarter of 2020, a 423% increase compared to $2.6 million in the third quarter of 2019\n\n\nAwarded a second contract from the U.S. Department of Health and Human Services to deploy Tablo for preparedness, and response to, disasters and public health emergencies\n\n\nSent the first patient home on Tablo since receiving FDA approval on March 31, 2020\n\n\nAppointed Steve Williamson as Chief Commercial Officer\n\n\nCompleted initial public offering of approximately 10.3 million shares, raising $254.8 million in net proceeds\n\n\n“Our commercial momentum continued to accelerate in the third quarter as we signed new contracts with some of the largest national and regional health systems in the country,” said Leslie Trigg, President and Chief Executive Officer. “While the acute market is expected to drive our near-term revenue growth, we also reached an exciting milestone in successfully supporting Tablo patients at home for the first time. In addition to our commercial progress, we have continued to significantly expand gross margins through the successful execution of our cost reduction initiatives.”\n\nThird Quarter 2020 Financial Results\n\nRevenue for the third quarter of 2020 was $13.8 million, representing an increase of 423% compared to $2.6 million in the third quarter of 2019. Product revenue for the third quarter of 2020 was $10.8 million, representing an increase of 349% compared to $2.4 million in the third quarter of 2019. Service and other revenue for the third quarter of 2020 was $2.9 million, representing an increase of 1,232% compared to $0.2 million in the third quarter of 2019.\n\nTotal gross loss for the third quarter of 2020 was ($5.1) million, compared to a gross loss of ($5.3) million for the third quarter of 2019. Total gross margin for the third quarter of 2020 was (37.3%), compared to (201.3%) in the third quarter of 2019. Product gro...