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Stock Analysis on Net

Shockwave Medical Inc. (NASDAQ:SWAV)

This company has been moved to the archive! The financial data has not been updated since May 6, 2024.

Common-Size Income Statement

Shockwave Medical Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Product revenue 100.00 100.00 100.00 100.00 100.00
Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of product revenue -13.06 -13.27 -17.47 -30.97 -39.97
Cost of revenue -13.06% -13.27% -17.47% -30.97% -39.97%
Gross profit 86.94% 86.73% 82.53% 69.03% 60.03%
Research and development -19.95 -16.68 -21.31 -54.47 -76.53
Sales and marketing -32.16 -33.08 -46.93 -76.22 -71.33
General and administrative -13.05 -11.62 -14.65 -35.20 -32.93
Operating expenses -65.15% -61.38% -82.89% -165.90% -180.79%
Income (loss) from operations 21.79% 25.35% -0.37% -96.86% -120.76%
Loss from equity method investment -0.26 -0.51 -2.65 0.00 0.00
Interest expense -0.95 -0.39 -0.46 -1.79 -2.20
Change in fair value of warrant liability 0.00 0.00 0.00 0.00 -1.42
Other income (expense), net 3.28 0.22 -0.25 1.85 5.46
Net income (loss) before taxes 23.87% 24.67% -3.73% -96.80% -118.92%
Income tax (provision) benefit -3.70 19.43 -0.13 -0.12 -0.14
Net income (loss) 20.17% 44.10% -3.85% -96.92% -119.06%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Between 2019 and 2023, a comprehensive shift in the financial structure is observed, transitioning from a high-burn growth phase to consistent operational profitability. This evolution is marked by significant expansion in gross margins and a substantial reduction in operating expenses as a percentage of total revenue.

Gross Margin Expansion
A consistent upward trend in gross profit is evident, rising from 60.03% in 2019 to 86.94% in 2023. This improvement is driven by a sharp decline in the cost of product revenue, which fell from 39.97% of revenue in 2019 to 13.06% in 2023, indicating strong economies of scale and improved production efficiency.
Operating Expense Optimization
Total operating expenses as a percentage of revenue decreased dramatically from 180.79% in 2019 to 65.15% in 2023. This reduction is observed across all primary categories: research and development declined from 76.53% to 19.95%, sales and marketing fell from 71.33% to 32.16%, and general and administrative expenses dropped from 32.93% to 13.05%.
Operational Profitability
Income from operations shifted from a significant loss of 120.76% of revenue in 2019 to a positive operating margin of 21.79% by 2023. The inflection point occurred between 2021 and 2022, where the company moved from a marginal operating loss of 0.37% to an operating profit of 25.35%.
Net Income and Bottom Line Trends
Net income followed a similar trajectory, evolving from a loss of 119.06% in 2019 to a profit of 20.17% in 2023. A notable peak in net income occurred in 2022 at 44.10%, which was influenced by a substantial income tax benefit of 19.43% of revenue. By 2023, the net income stabilized at 20.17% as the tax provision returned to a negative 3.70%.
Other Financial Items
Interest expenses as a percentage of revenue remained relatively low and stable, fluctuating between a high of 2.20% in 2019 and a low of 0.39% in 2022. Other income and expenses remained minimal, with a slight increase to 3.28% of revenue in 2023.

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