Stock Analysis on Net
Stock Analysis on Net

Abiomed Inc. (NASDAQ:ABMD)

This company has been moved to the archive! The financial data has not been updated since November 3, 2022.

Common-Size Income Statement

Abiomed Inc., common-size consolidated income statement

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12 months ended: Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -18.24 -19.10 -17.99 -16.84 -16.60 -15.86
Gross profit 81.76% 80.90% 82.01% 83.16% 83.40% 84.14%
Research and development -15.84 -14.38 -11.74 -12.15 -12.68 -14.91
Selling, general and administrative -41.05 -39.43 -40.62 -41.79 -44.25 -48.99
Acquired in-process research and development -11.24 0.00 0.00 0.00 0.00 0.00
Income from operations 13.64% 27.09% 29.64% 29.22% 26.47% 20.24%
Interest and other income, net 4.83 6.92 0.90 5.01 0.61 0.35
Interest expense 0.00 0.00 0.00 0.00 -0.05 -0.08
Income before income taxes 18.47% 34.01% 30.54% 34.23% 27.02% 20.51%
Income tax provision -5.24 -7.40 -6.40 -0.56 -8.13 -8.81
Net income 13.23% 26.61% 24.14% 33.66% 18.89% 11.70%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The financial performance from 2017 to 2022 reflects a period of operational scaling followed by a significant impact from strategic acquisitions in the final year. While gross margins remained consistently high, the bottom-line profitability experienced substantial volatility, peaking in 2019 before declining in 2022.

Gross Profitability Trends
Gross profit margins remained robust throughout the analyzed period, though a gradual decline is observed. Margins decreased from 84.14% in 2017 to 81.76% in 2022. This contraction is primarily driven by a steady increase in the cost of revenue, which rose from 15.86% to a peak of 19.10% in 2021 before slightly recovering to 18.24% in 2022.
Operating Expense Management
A significant improvement in operational efficiency is evident in the selling, general, and administrative (SG&A) expenses, which declined from 48.99% of revenue in 2017 to a low of 39.43% in 2021, suggesting strong economies of scale. Research and development (R&D) spending remained relatively stable between 11% and 15% for most of the period, though it trended upward in 2022 to 15.84%, indicating an increased investment in innovation.
Operating Income and Special Items
Income from operations showed a growth trend from 2017 (20.24%) to a peak in 2020 (29.64%). However, a sharp contraction occurred in 2022, with operating income falling to 13.64%. This decline is directly attributable to a one-time charge for acquired in-process research and development, which accounted for 11.24% of revenue in the final year.
Net Income and Tax Impact
Net income exhibited significant fluctuation, rising from 11.70% in 2017 to a peak of 33.66% in 2019. This peak was supported by a substantial reduction in the income tax provision to 0.56% of revenue. In subsequent years, the net margin normalized and eventually fell to 13.23% in 2022, influenced by the aforementioned acquisition costs and a return to higher tax provisions relative to the 2019 anomaly.
Other Income Contributions
Interest and other income, net, provided a variable but positive contribution to the pre-tax margin. Notably, this item spiked to 5.01% in 2019 and 6.92% in 2021, providing a buffer to the net income during those specific fiscal years.

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