BIOLASE Inc. (BIOL.Q) has announced its Q2 2021 Financial Results for the quarter ended June 30, 2021 and has provided Q3 2021 revenue guidance.
“Our focus on educating and training dental specialists on the benefits of our lasers is already leading to increased adoption across these large and untapped markets. In fact, this momentum is giving us greater visibility into Q3, and we feel comfortable providing guidance regarding expected significant year-over-year improvement across our key performance metrics, including revenue and gross margin,” commented John Beaver, President and Chief Executive Officer.
BIOLASE is a medical device company that develops, manufactures, markets, and sells laser systems in dentistry and medicine. The Company’s proprietary laser products incorporate approximately 271 patented and 40 patent-pending technologies designed to provide biologically and clinically superior performance with less pain and faster recovery times. Furthermore, BIOLASE’s products utilize cutting-edge technology at competitive prices to perform a broad range of dental procedures, including cosmetic and complex surgical applications.
As someone who had the privledge of watching Awake, an S-tier thriller released in 2007 featuring Jessica Alba, I have always avoided going under the knife for any sort of procedure, dental included. However, when my wisdom teeth began causing crowding problems, it was either confront my fears or risk looking like a donkey in the future. Stricken by fear, I envisioned myself waking up during the procedure, unable to move but capable of feeling every incision. My dentist noticed my distress and assured me that I wouldn’t have to worry about that…because he wasn’t planning on putting me under in the first place. Turns out “laughing gas”, an anesthetist that relaxes you but doesn’t put you to sleep, is more common for removing wisdom teeth.
Fast forward to the procedure and it was just as terrifying as I thought it would be. I was awake for the entire thing and, although I could barely feel anything, I could hear the drill and feel my wisdom teeth splitting. Since then, I have not been to the dentist for anything more than a cavity filling. If BIOLASE was around during that time, I imagine my experience would have been a lot more pleasant. After all, a precision laser sounds a lot more reliable than a maniacal dentist wielding a dental saw. According to the Company’s Q2 2021 results, it looks like I’m not the only who feels this way.
“With over 70% of our U.S. laser sales being generated from new customers during the quarter, and over 35% of our U.S. Waterlase sales coming from dental specialists, it’s clear our messaging, marketing, educational and training efforts are bearing fruit,” continued John Beaver.
In the second quarter of 2021, BIOLASE’s laser system sales increased a whopping 424%. In total, the Company’s net revenue grew 211% to $9.1 million, representing a 6% increase compared to pre-pandemic revenues during Q2 2019. With more dental practices operating in Q2 2021, BIOLASE saw its US and international revenue increase 167% and 340%, respectively. During the same period, BIOLASE had $61,249,000 in total assets and $27,993,000 in total assets. Overall, the Company boasted a cash position of $37,081,000 in Q2 2021, up from $17,564,000 on December 31, 2020. Although BIOLASE’s operating expenses increased to $7.3 million in Q2 2021, the Company still has an ample cash supply to continue operations.
Looking forward, BIOLASE expects its Q3 2021 revenue to be significantly above it previous Q3 2020 revenue. Even though the third quarter of the year is seasonally the Company’s second weakest revenue quarter, BIOLASE expects its third quarter results to approach the same revenues the Company achieved in Q2 2021. With this in mind, BIOLASE shows incredible potential as a supplier of dental equipment. Keep in mind, the global dental equipment market was valued at USD$5.4 billion in 2020 and is expected to grow at an impressive CAGR of 12.1% from 2021 to 2028. With outstanding Q2 2021 results, its more likely that the Company will find similar success in the future opposed to having its performance suddenly tank. BIOLASE shares are also trading at less than an dollar, suggesting that it may be a good time to invest if you’re looking to place your lot in the dental market.
BIOLASE’s share price opened at $0.66, up from a previous close of $0.63. The Company’s shares are up more than 31% and are currently trading at $0.82 as of 10:37AM ET. This indicates that there has been significant change following the news.