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.

Cash Flow Statement 

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Shockwave Medical Inc., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) 147,278 215,996 (9,136) (65,699) (51,109)
Depreciation and amortization 10,358 4,856 3,579 1,863 1,337
Loss from equity method investment 1,869 2,475 6,286
Stock-based compensation 73,234 44,890 27,257 10,350 3,646
Non-cash lease expense 3,160 3,042 1,957 1,483 944
Amortization of premium and discount on available-for-sale securities (11,956) (68) 1,093 300 (543)
Loss on write down of fixed assets 271 81 7 187 67
Loss on extinguishment of debt 710 562
Deferred income taxes 14,760 (97,276)
Change in fair value of warrant liability 609
Amortization of debt issuance costs 1,507 533 511 646 436
Foreign currency remeasurement (1,278) 572
Accounts receivable (41,535) (33,313) (25,746) (4,312) (4,527)
Inventory (31,009) (29,711) (12,073) (17,056) (6,824)
Prepaid expenses and other current assets (3,417) (3,786) (2,110) (501) (785)
Other assets (4,486) (3,243) 91 (306) 41
Accounts payable 112 1,945 1,870 (1,392) 1,272
Accrued and other current liabilities 32,923 11,941 21,637 4,017 8,339
Lease liabilities 2,026 (1,764) (187) (764) (1,010)
Long-term income tax liability 1,526
Changes in operating assets and liabilities (43,860) (57,931) (16,518) (20,314) (3,494)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities 48,775 (98,264) 24,172 (5,485) 3,002
Net cash provided by (used in) operating activities 196,053 117,732 15,036 (71,184) (48,107)
Purchase of available-for-sale securities (747,471) (137,797) (117,245) (167,953) (119,476)
Proceeds from maturities of available-for-sale securities 246,750 100,773 156,100 72,000 63,750
Purchase of property and equipment (30,595) (25,126) (12,439) (11,520) (3,817)
Business combination, net of cash acquired (94,411)
Net cash (used in) provided by investing activities (625,727) (62,150) 26,416 (107,473) (59,543)
Proceeds from issuance of common stock upon initial public offering, net of issuance costs paid 100,547
Proceeds from issuance of common stock in private placement 10,000
Proceeds from issuance of common stock in public offering, net of issuance costs paid 83,368 96,856
Payments of taxes withheld on net settled vesting of restricted stock units (43) (23) (8,337) (1,420)
Proceeds from debt financing 80,000 24,169 3,265
Proceeds from convertible debt, net 730,455
Purchase of capped calls related to convertible debt (96,375)
Payment of assumed warrant liability (16,240)
Payment of deferred offering costs (179)
Proceeds from stock option exercises 1,374 2,562 3,049 4,317 2,206
Proceeds from issuance of common stock under employee stock purchase plan 6,230 4,487 2,837 1,795
Proceeds from warrant exercises 110
Principal payment of debt (105,000) (18,196) (1,111) (1,667)
Net cash provided by (used in) financing activities 600,401 12,999 (2,451) 90,035 208,052
Effect of exchange rate changes on cash and cash equivalents 797 (1,153)
Net increase (decrease) in cash, cash equivalents and restricted cash 171,524 67,428 39,001 (88,622) 100,402
Cash, cash equivalents and restricted cash at beginning of period 158,302 90,874 51,873 140,495 40,093
Cash, cash equivalents and restricted cash equivalents at end of period 329,826 158,302 90,874 51,873 140,495

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).


Profitability and Income
The net income (loss) of the company shows significant volatility over the analyzed period. There were substantial losses in 2019 (-$51.1 million), 2020 (-$65.7 million), and 2021 (-$9.1 million). However, a marked turnaround is observed in 2022 with a net income of $216.0 million, followed by a considerable profit of $147.3 million in 2023. This shift indicates a successful transition to profitability starting in 2022.
Non-Cash Expenses and Adjustments
Depreciation and amortization increased steadily from $1.3 million in 2019 to $10.4 million in 2023, reflecting growing investment in assets. Stock-based compensation expenses rose sharply from $3.6 million in 2019 to $73.2 million in 2023, suggesting increased granting of equity incentives. Non-cash lease expenses also rose over the years, indicating growing lease obligations. Loss from equity method investment peaked at $6.3 million in 2021 and then declined.
Asset and Liability Changes
Accounts receivable and inventory consistently increased in absolute negative changes, indicating growing working capital needs or slower collections and accumulation of inventory. Accounts payable showed small fluctuations, ending with a negligible change in 2023. Accrued liabilities witnessed a rise to $32.9 million in 2023, possibly reflecting increased operational accruals. Lease liabilities shifted to a positive change in 2023, contrasting prior years’ decreases.
Cash Flow Trends
Operating cash flows recovered strongly from negative values of -$48.1 million in 2019 and -$71.2 million in 2020 to positive $15.0 million in 2021, $117.7 million in 2022, and $196.1 million in 2023. This recovery aligns with improved profitability. Investing cash flows were negative in 2019, 2020, 2022, and 2023, with a significant outflow of -$625.7 million in 2023 related largely to a $94.4 million business combination and heavy investing activities, including securities purchases. Financing cash flows fluctuated substantially, with inflows driven by stock issuances early on, significant debt proceeds in recent years, and the issuance of convertible debt in 2023 amounting to $730.5 million.
Capital Raising and Debt
Proceeds from common stock issuances were strong in earlier years but ceased after 2020. In 2023, the company raised significant capital via convertible debt issuance totaling over $730 million, which profoundly increased financing cash inflows. Concurrently, principal debt repayments increased, reaching $105 million in 2023, showing active management of debt maturity. Related derivative and warrant payments associated with convertible debt also impacted financing activities.
Liquidity Position
Cash and equivalents grew steadily, from $14.0 million at the end of 2019 to $329.8 million at the end of 2023. This reflects improved cash generation and capital-raising efforts, markedly strengthening liquidity. The net increase in cash was particularly strong in 2023 with a $171.5 million rise.
Other Observations
Deferred income tax liabilities fluctuated, with a notable $97.3 million reduction in 2022 followed by a positive reversal in 2023. The company’s non-cash lease expenses and amortization of debt issuance and securities-related items highlight ongoing financing and lease arrangements complexities. Negative changes in prepaid expenses and other assets likely reflect operational adjustments affecting working capital.