BIOLASE, Inc. (NASDAQ: BIOL), the global leader in dental lasers, announced its financial results for the fourth quarter and full year ended December 31, 2022.
2022 Full-Year Financial Highlights
• Achieved year-over-year revenue growth of 24% to $48.5 million
• Increased U.S. laser sales by 39% year over year
• Achieved record U.S. consumable sales, up 25% year over year, driven by increased procedures using BIOLASE lasers
• Generated increased adoption of its industry-leading laser, with approximately 84% of U.S. Waterlase sales for the full-year 2022 coming from new customers
• Sales conversion rate continued to rise throughout the year due to the success of its Waterlase Exclusive Trial Program
"The rising demand for our industry-leading lasers, which is being driven by the execution of our growth strategy, enabled us to achieve our business objectives for 2022 while positioning us for continued success in 2023," commented John Beaver, President and Chief Executive Officer. "We reported revenue growth of 24% year over year, primarily from U.S. laser sales increasing 39% year over year and U.S. consumable sales growing 25% year over year. Our strong performance is being driven by the market's positive reaction to the Waterlase Exclusive Trial Program and the team's sales conversion rate of nearly 50%. This initiative, along with the emphasis on education and training for endodontists, periodontists, pediatric dentists, and dental hygienists, generated increased adoption of our laser technology in the U.S., with approximately 84% of our U.S. Waterlase sales in the year coming from new customers.
"We expect much of the same in 2023 as we currently anticipate total revenue growth of at least 25%. Moreover, we expect our gross margins to improve significantly in 2023 due to increased sales volume and pricing increases, lower trunk fiber costs resulting from our recent acquisition, and other manufacturing cost savings. We believe all of this positions us to achieve positive adjusted EBITDA for the full year of 2023.
"Our results and future expectations clearly demonstrate that we are moving the needle, and with less than 10% of the U.S. dental community currently using dental lasers, we are confident we can leverage the enhanced capabilities of our product and our successful sales and marketing initiatives, to drive further adoption and become the new standard of care."
2022 Financial Results
Net revenue for the year ended December 31, 2022, was $48.5 million, an increase of 24% compared to net revenue of $39.2 million for the year ended December 31, 2021. U.S. laser revenue was $20.4 million for the year ended December 31, 2022, an increase of 39% compared to U.S. laser revenue of $14.8 million for the year ended December 31, 2021. U.S. consumables and other revenue for the year ended December 31, 2022, which consists of revenue from consumable products such as disposable tips, increased 25% year over year. International laser revenue was $11.0 million for the year ended December 31, 2022, compared to $10.3 million for the year ended December 31, 2021.
Gross margin for the year ended December 31, 2022, was 33% compared to 42% for the year ended December 31, 2021. Total operating expenses were $41.2 million for the year ended December 31, 2022, compared to $33.0 million for the year ended December 31, 2021, a 25% increase year over year. Operating loss for the year ended December 31, 2022, was $25.3 million, compared to an operating loss of $16.4 million for the year ended December 31, 2021, an increase of 54% year over year.
The Company had cash and cash equivalents of approximately $4.2 million on December 31, 2022. Following its January 2023 equity raise of an additional $9.0 million in net proceeds, the Company believes it has sufficient liquidity to execute its near-term growth strategies and greatly improve profitability.
Net Loss and Adjusted EBITDA
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.
Net loss attributable to common stockholders for the year ended December 31, 2022, was $28.9 million, or $4.16 per share, compared to a net loss of $16.7 million, or $2.83 per share, for the year ended December 31, 2021. Adjusted EBITDA for the year ended December 31, 2022, was a loss of $20.1 million, or $2.91 per share, compared with an Adjusted EBITDA loss of $14.7 million, or $2.49 per share, for the year ended December 31, 2021.
2023 First Quarter and Full Year Financial Guidance
BIOLASE is anticipating first-quarter net revenue to exceed $10.0 million, representing relatively flat revenue compared to the year-ago quarter. The Company expects 2023 full-year net revenue to increase at least 25% year over year and expects to achieve positive adjusted EBITDA results for the full year of 2023 (adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, patent litigation settlements, stock-based and other non-cash compensation, and the change in allowance for doubtful accounts).