BIOLASE Reports 31% Sequential Revenue Growth In 2020 Fourth Quarter; Demand From New Users Driving Positive Performance
FOOTHILL RANCH, Calif., March 25, 2021 /PRNewswire/ -- BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, today announced its financial results for the fourth quarter and full year ended December 31, 2020.
2020 Fourth Quarter Operating Highlights and Recent Developments:
"Our strong fourth quarter revenue performance is our second consecutive quarter of significant sequential growth and was driven by sales to new customers, dental specialists and DSOs in the U.S.," commented John Beaver, President and Chief Executive Officer. "Dental specialists, such as endodontist and periodontists, comprised 40% of our U.S. laser sales in the fourth quarter, reflecting our ongoing efforts to educate and train these dental specialists on the benefits of our lasers to drive increased adoption. Our industry-leading dental lasers provide a new, improved and better standard of care for dental procedures while ensuring a safer environment for dental practitioners and patients by reducing aerosolization to mitigate the spread of infectious pathogens, such as COVID-19. We are experiencing high demand from dental specialists for our advanced dental lasers because these products provide the opportunity they seek for safer, more advanced alternatives to grow their practices.
"We have continued to make adjustments to our go-to-market approach during the pandemic, and the momentum we are seeing in the current 2021 first quarter gives us greater confidence that we are nearing a resumption of the growth we were generating prior to COVID-19. Specifically, despite the ongoing impact of the pandemic, we expect to report total revenue growth of approximately 65% for the current first quarter compared to the same quarter a year ago."
2020 Fourth Quarter Financial Results
Net revenue for the fourth quarter of 2020 was $8.5 million, an increase of 31% sequentially from third quarter revenue of $6.5 million. Compared to the year-ago fourth quarter, which was the last full quarter prior to the impact of the COVID-19 pandemic, revenue decreased 17% from $10.2 million. U.S. laser revenue was $3.8 million for the fourth quarter of 2020, up 15% when compared to U.S. laser revenue of $3.3 million for the fourth quarter of 2019. U.S. consumables and other revenue for the fourth quarter of 2020, which consists of revenue from consumable products such as disposable tips, decreased 10% compared to the fourth quarter of 2019. Outside the U.S., laser revenue declined 52% to $1.7 million for the fourth quarter of 2020 compared to $3.5 million for the fourth quarter of 2019, and consumables and other revenue decreased 13% year over year as recovery from the pandemic has come slower internationally.
Gross margin for the fourth quarter of 2020 was 19%, compared to 43% for the fourth quarter of 2019. The lower gross margin reflects the impact of a decline in revenues relative to our fixed costs and a $1.0 million expense for inventory obsolescence. These impacts were partially offset by higher average U.S. selling prices of our lasers. Total operating expenses were $7.1 million for the fourth quarter of 2020 compared to $7.5 million for the fourth quarter of 2019, a decrease of approximately 5%. Operating loss for the fourth quarter of 2020, was $5.5 million, compared to an operating loss of $3.0 million in the fourth quarter of 2019. Net loss for the fourth quarter of 2020 was $6.1 million, or $0.07 per share, compared to a net loss of $3.6 million, or $0.13 per share, for the fourth quarter of 2019.
Full Year 2020 Financial Results
Net revenue for the year ended December 31, 2020 was $22.8 million, a decrease of 40% compared to net revenue of $37.8 million for the year ended December 31, 2019. U.S. laser revenue was $8.3 million for the year ended December 31, 2020, a decrease of 25% compared to U.S. laser revenue of $11.1 million for the year ended December 31, 2019. U.S. consumables and other revenue for the year ended December 31, 2020, which consists of revenue from consumable products such as disposable tips, decreased 29% year over year. International laser revenue decreased to $4.0 million for the year ended December 31, 2020 compared to $11.7 million for the year ended December 31, 2019.
Gross margin for the year ended December 31, 2020 was 27% compared to 38% for the year ended December 31, 2019. Total operating expenses were $24.7 million for the year ended December 31, 2020 compared to $29.9 million for the year ended December 31, 2019, a decrease of $5.2 million, or 17%, year over year. Operating loss for the year ended December 31, 2020 was $18.5 million, compared to an operating loss of $15.6 million for the year ended December 31, 2019, an increase of $2.9 million year over year. Net loss for the year ended December 31, 2020 was $16.8 million, or $0.28 per share, compared to a net loss of $17.9 million, or $0.77 per share, for the year ended December 31, 2019.
Adjusted EBITDA – Use of Non-GAAP Measures
The Reconciliation of GAAP Net Loss to Adjusted EBITDA at the end of this news release provides the details of the Company's non-GAAP disclosures and the reconciliation of GAAP net loss and net loss per share to the Company's Adjusted EBITDA and Adjusted EBITDA per share.
Adjusted EBITDA loss for the fourth quarter of 2020 was $4.5 million, or $0.05 per share, compared with Adjusted EBITDA loss of $1.7 million, or $0.05 per share, for the fourth quarter of 2019.
Adjusted EBITDA for the year ended December 31, 2020 was a loss of $13.4 million, or $0.22 per share, compared with an Adjusted EBITDA loss of $10.3 million, or $0.45 per share, for the year ended December 31, 2019.
2021 First Quarter Revenue Guidance
For the first quarter ending March 31, 2021, the Company expects total revenue of $7.5 million to $8.0 million, which would represent growth between 60% and 70% year over year.
Conference Call Information
BIOLASE, Inc. will host a conference call today at 4:30 p.m. Eastern Time to discuss its operating results for the fourth quarter and full year ended December 31, 2020, and to answer questions. For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the U.S./Canada is 800-353-6461. For international participants outside the U.S./Canada, the dial-in number is 334-323-0501. For all callers, refer to the Conference ID 7623727. To access the live webcast, visit the Investor Relations section of the BIOLASE website at www.biolase.com and see "Investor Events".
An audio archive of the webcast will be available for 30 days on the Investor Relations section of the BIOLASE website.
BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. BIOLASE's products advance the practice of dentistry and medicine for patients and healthcare professionals. BIOLASE's proprietary laser products incorporate approximately 271 patented and 40 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. BIOLASE's innovative products provide cutting-edge technology at competitive prices to deliver superior results for dentists and patients. BIOLASE's principal products are revolutionary dental laser systems that perform a broad range of dental procedures, including cosmetic and complex surgical applications. BIOLASE has sold over 41,200 laser systems to date in over 80 countries around the world. Laser products under development address BIOLASE's core dental market and other adjacent medical and consumer applications.
For updates and information on Waterlase iPlus®, Waterlase Express™, and laser dentistry, find BIOLASE online at www.biolase.com, Facebook at www.facebook.com/biolase, Twitter at www.twitter.com/biolaseinc, Instagram at www.instagram.com/waterlase_laserdentistry, and LinkedIn at www.linkedin.com/company/biolase.
BIOLASE®, Waterlase® and Waterlase iPlus® are registered trademarks of BIOLASE, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties, including statements, regarding BIOLASE's expected revenue and revenue growth during the first quarter of 2021. Forward-looking statements can be identified through the use of words such as may," "might," "will," "intend," "should," "could," "can," "would," "continue," "expect," "believe," "anticipate," "estimate," "predict," "outlook," "potential," "plan," "seek," and similar expressions and variations or the negatives of these terms or other comparable terminology. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect BIOLASE's current expectations and speak only as of the date of this release. Actual results may differ materially from BIOLASE's current expectations depending upon a number of factors. These factors include, among others, the coronavirus (COVID-19) and the effects of the outbreak and actions taken in connection therewith, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business, and those other risks and uncertainties that are described in the "Risk Factors" section of BIOLASE's most recent annual report filed on Form 10-K and quarterly report filed on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, BIOLASE does not undertake any responsibility to revise or update any forward-looking statements.
Tables to Follow
In addition to the financial information prepared in conformity with generally accepted accounting principles in the U.S. ("GAAP"), this press release includes certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results and that, in some respects, these non-GAAP financial measures are more indicative of the Company's ongoing core operating performance than their GAAP equivalents. In 2019, the Company revised its non-GAAP financial measures to include the change in allowance for doubtful accounts in an effort to better align its Adjusted EBITDA with its loan covenants and how management evaluates business performance.
Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation, and allowance for doubtful accounts. Management uses Adjusted EBITDA in its evaluation of the Company's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the Company may be different from similarly named non-GAAP financial measures used by other companies.
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SOURCE BIOLASE, Inc.
Company Codes: NASDAQ-SMALL:BIOL