Outset Medical, Inc. (NASDAQ: OM) is engaged as a medical technology company, which is focused on the research and development of innovative technologies to help reduce costs and complexities of dialysis. Shares of the dialysis medical technology company are climbing 36% through afternoon trading on Wednesday, November 9, 2022. Over the past three months, Outset Medical has seen average daily volume of 404,220 shares. However, volume of 1.62 million shares or dollar volume of around $25.21 million, has already exchanged hands through afternoon trading.
Shares of Outset Medical are rallying after the company reported third quarter 2022 financial results. During the quarter ended September 30, 2022, the medtech company reported net revenue of $27.8 million, which represents a 5.5% increase year-over-year and a 10.8% increase from Q2 2022. Gross margins improved to 15.6% during Q3 2022, up from 11.2% during the same period last year.
During the quarter, the medtech company says it resumed shipping products to new home patients and continued to expand its Tablo home patient base beyond internal expectations. Outset Medical was also awarded a five-year contract with the U.S. Department of Veterans Affairs, which enables Tablo to be sold into the network of 106 VA hospitals across the United States. Furthermore, Outset Medical was able to secure up to $300 million in debt financing, which has helped strengthen its balance sheet and extend its cash runway.
On a forward-looking basis, Outset Medical says they now project full-year 2022 revenue to come in a range between $111 million to $113 million. This represents a revenue growth range between 8% and 10% compared to 2021. The old guidance prior to this update estimated revenues between $105 million and $110 million for the year.
“Our third quarter results reflect the value Tablo is delivering in both the acute and home settings, with console shipments exceeding our initial expectations,” said Leslie Trigg, Chair and Chief Executive Officer of Outset. “While we have seen staffing and inflationary pressures persist for our provider customers, we believe our continued expansion in the acute setting and our strong start to rebuilding the home patient pipeline reflects patient preference for Tablo and strong demand across end markets.”
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