In a press release yesterday, Sientra Inc, a prominent surgical aesthetics company, unveiled its financial results for the third quarter (Q3) ending September 30, 2023. The disclosure sparked a remarkable upswing in the company’s stock value, underlining the market’s positive response to key financial indicators.
At the time of this publication, Sientra Inc stock (SIEN) has witnessed a surge.
Sientra Inc
Current Price: $0.98
Change : +0.25
Change (%): (34.25%)
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Source: Tomorrow Events Market Data
Sientra Inc Q3 2023 Financial Results:
The third quarter of 2023 witnessed a total net sales figure of $19.5 million, marking a 13.7% decrease compared to the same period in 2022, where net sales amounted to $22.6 million.
The Generally Accepted Accounting Principles (GAAP) gross profit for Q3 2023 stood at $10.0 million, representing 51.3% of sales. This marked a decrease from the gross profit of $12.8 million, constituting 56.6% of sales during the parallel quarter in 2022. Notably, a non-cash depreciation and amortization charge of $1.4 million impacted the results, primarily attributed to the inclusion of non-cash amortization of Viality manufacturing know-how and developed technology in the cost of sales. However, the Non-GAAP gross margin, excluding this non-cash charge, displayed an improvement, reaching 58.4% of sales for the current period, as opposed to 57.9% for the prior year period.
In terms of GAAP loss from continuing operations, the third quarter of 2023 saw a $14.8 million loss, indicating a marginal 0.7% improvement from the $14.9 million loss reported during the same period in 2022.
Total GAAP operating expenses for Q3 2023 amounted to $19.4 million, reflecting a noteworthy reduction from the prior year period’s $25.3 million—an impressive decrease of $5.9 million or 23.3%.
Non-GAAP total operating expenses for the third quarter of 2023 reached $17.8 million, down from $21.7 million reported during the same period in 2022, showcasing an 18.0% reduction from the prior year.
Operational Efficiency and EBITDA:
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the third quarter of 2023, on a non-GAAP basis, reported a loss of $6.4 million. This represents a substantial 25.6% improvement from the $8.6 million loss reported for the same period in 2022, underscoring the company’s enhanced operational efficiency.
Financial Position:
As of September 30, 2023, net cash and cash equivalents for Sientra Inc. amounted to $15 million. This figure reflects a decline from the $26.1 million reported on December 31, 2022, and the $18.6 million recorded on June 30, 2023.
The announced financial results paint a comprehensive picture of Sientra Inc.’s recent performance, indicating both challenges and strategic improvements. The market’s favorable response, as reflected in the surge in stock value, suggests that investors are optimistic about the company’s trajectory, particularly in light of the demonstrated operational efficiencies during the third quarter of 2023.
