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Shockwave Medical ($SWAV) Earning Recap
- Revenue increase 72% YoY
- Management increased FY guidance by 6%, from $670M at the midpoint to $710M, the latter representing 45% growth over FY22. I expect management to rise FY guidance each of the next two quarters as well.
- Gross margins increased 70bps YoY
- Operating margin increased 830bps YoY
- EBT margin increased 780bps YoY
- FCF increased swung from -1.4% of revenue to +16.6% YoY, to $26.7M
- I'm watching revenue breakdown by geography closely, particularly the Other category. It may not look like much but Shockwave's international expansion is a key growth driver, in particular Japan and China, which management expects to see results from in 2023. The US is obviously their bread and butter right now, up 68% YoY and 89% TTM vs. prior TTM, and Europe is strong as well (35% YoY, 30% TTM vs. prior), but Other was up 334% YoY and is now up 227% TTM vs. prior period.
- On the conference call, management reiterated that the rollout in Germany, Japan, and China is going very well. No actual numbers have been given yet so Other revenue is the thing I keep my eye on (until some of these areas start exceeding 10% of revenue and need to be broken out into their own demographic).
Impressive how they continue to deliver at $SWAV. I think we'll see fresh ATHs for shares in the coming weeks, though the stock has had a decent run so far this year.
@christian7621 Yeah, so lame. They are joining Boston Scientific as the companies rumored to want to buy Shockwave. I was just telling someone here the other day that I lost Mazor Robotics to Medtronic back in Oct 2018. I was so bullish on them. I don't want a repeat of that. I want to own Shockwave for a decade+.
However, I'm becoming resigned to the fact that they probably will get bought. There's too much smoke from companies with deep pockets who could create a bidding war. Management and investors won't say no to that. If only there was still a founder with a control of voting power but there isn't and insiders only own 3.4% of shares outstanding.
C'est la vie.
@interrobangbros yeah the founder with controlling power would help. Most of these execs just looking for a payday. I feel for you man. Johnson and Johnson buying them is interesting. I wouldn’t own J and J because of the lawsuits and not really a fan of how it’s been run lately but I understand your frustration
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