NARI posted excellent numbers at its most recent earnings release. If NARi were an SaaS stock, we’d all be drooling. It’s not, but there are some persuasive reasons to consider it. The stock has exceptional gross margins, terrific revenue gain, recent increase revision of its TAM – and it’s profitable. First, let’s look at the numbers and then get into some of the highlights of the conference call.
Q4 Q3 Q2 Q1'21 Q4 TTM Revenue 83.2 72.9 63.0 57.0 48.6 277 seq chg 14.1% 15.7% 10.5% 17.3% yoy chg 71% 88% 63% Patients 7,700 6,696 seq chg 15.0% Gross mar . 90.1% 90% 92% 92% 92.4% Net Inc. M 1.1 -2.8 4 8 7 Cash* 180 169 176 174
*The cash figure was at the time of the earnings release. Since then, Inari issued 2.3 million shares for a net of $151.5 M so the cash should now be about $331.5M.
According to Form 8-K, March 10, 2022:
“The Company estimates that the net proceeds from the Offering were approximately $151.5 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company. The Company currently intends to use the net proceeds from the Offering to fund product development, research activities and clinical development activities, to expand its commercial activities in the United States and internationally, including marketing personnel and programs, and the remainder for working capital and other general corporate purposes.” https://www.sec.gov/ix?doc=/Archives/edgar/data/1531048/0001…
Q4 2021 Results - Earnings Call Transcript
Based upon this work, we believe these markets to be meaningfully larger than we’ve communicated in the past. We now believe the total annual incidence of patients diagnosed with intermediate to high risk PE in the U.S., using the same definition we’ve always used, is 280,000 patients, compared to our previous TAM estimate of 200,000 patients. Similarly, we now believe the total annual incidence of patients diagnosed with iliofemoral DVT, again, using the same historical definition is 430,000 patients, up from 262,000 patients in our previous DVT estimates. Combined, this represents 710,000 total addressable VTE patients in the U.S. and with our historical average selling price. The total new TAM is $5.8 billion. This is 53% larger than our previous TAM estimate of $3.8 billion.
Based on these new TAM estimates, we believe, in 2021, only about 4% of all the patients who could benefit from our devices were actually treated. In addition to better understanding our TAMs, we completed similar work to understand the total number of hospitals with cath labs in interventional suites.
Sales organization. We ended 2021 with just over 200 territories, slightly above the range to which we guided earlier in the year. We expect to add territories in 2022 at roughly the same cadence we’ve demonstrated in the past and finish the year with at least 275 territories.
Our second growth driver is building awareness and driving deeper adoption at existing hospital customers. Most VTE patients continue to be treated with anticoagulation alone and in fact, a large percentage of these patients never even see a physician with a VTE expert. We continue to drive awareness of the benefits on our procedures with non-interventional physicians and we continue to work with hospital administrators to install more systematic processes to consistently identify and triage VTE patients to the physicians who best understand the disease state.
The company is not founder-led. Donald Milder has served as a member of our board of directors since September 2011 and as its Chair since December 2019. He is the largest shareholder with 7.4% of shares outstanding. CEO William Hoffman is the owner of 0.8% of the company’s shares. https://www.yahoo.com/video/much-inari-medical-inc-nasdaq-18….
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