Name: Shockwave Medical Inc. (NASDAQ:SWAV) | Cash Flow Statement
Creator: Stock Analysis on Net

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.

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Shockwave Medical Inc., consolidated cash flow statement

US$ in thousands

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).

The financial trajectory from 2019 to 2023 reflects a transition from a high-growth, loss-making phase to a period of operational profitability and substantial cash generation. Net income shifted from losses of 51.1 million USD in 2019 and 65.7 million USD in 2020 to a positive 216 million USD in 2022 and 147.3 million USD in 2023. This turnaround is mirrored in the net cash provided by operating activities, which evolved from a deficit of 71.2 million USD in 2020 to a surplus of 196.1 million USD by the end of 2023.

Operating Cash Flow Dynamics: A consistent upward trend in operating cash flow is observed, driven by the achievement of net profitability and significant non-cash adjustments. Stock-based compensation has grown substantially, rising from 3.6 million USD in 2019 to 73.2 million USD in 2023, serving as a major non-cash add-back to net income. Conversely, working capital continues to act as a drag on cash flow, with increasing outflows for accounts receivable and inventory, indicating scaling operations and growing asset requirements to support revenue growth.
Investment Activity and Capital Expenditure: Investing activities are characterized by heavy allocations toward available-for-sale securities and a steady increase in capital expenditures. The purchase of property and equipment grew from 3.8 million USD in 2019 to 30.6 million USD in 2023, suggesting an expansion of physical infrastructure. The year 2023 marked a significant escalation in investment activity, with 747.5 million USD spent on available-for-sale securities and a 94.4 million USD cash outflow for a business combination.
Financing and Capital Structure Evolution: The financing strategy transitioned from equity-based funding to sophisticated debt instruments. Early funding was driven by an initial public offering and public offerings in 2019 and 2020. By 2023, the company shifted toward debt markets, securing 730.5 million USD through convertible debt, offset by 96.4 million USD used for capped calls related to that debt. Principal payments of debt also increased, reaching 105 million USD in 2023.
Liquidity and Cash Position: The overall liquidity position has strengthened considerably over the analyzed period. Cash, cash equivalents, and restricted cash increased from 40.1 million USD at the beginning of 2019 to 329.8 million USD by the end of 2023. This accumulation is the result of strong operational cash flows and the massive influx of capital from convertible debt in the final year, providing a robust cushion for further investment and operational scaling.

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