SAN JOSE, CA—Leslie Trigg, Chair and CEO of Outset Medical (TASE:PMCN), Inc. (NASDAQ:OM), recently sold 5,645 shares of common stock, according to a regulatory filing. The shares were sold at a price of $0.80 each, amounting to a total transaction value of $4,516. This transaction was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as noted in the filing. Following this sale, Trigg holds 904,851 shares directly and an additional 8,770 shares indirectly through the Trigg Family Trust.
In other recent news, Outset Medical has reported impressive Q3 2024 results, with robust earnings and revenue growth. The company's Q3 revenue reached $28.7 million, exceeding expectations, driven by a 14% increase in treatment revenue and a 22% rise in service revenue. The firm's year-to-date recurring revenue also grew by 23%, with average selling prices for consoles increasing by 18%.
Outset Medical's gross margin improved to 36.4%, and the company reported a net loss of $20.2 million, a 43% decrease from the previous year. The company has raised its 2024 revenue guidance to approximately $112 million and expects a gross margin in the mid-30% range. Operating expenses for 2024 are projected at around $120 million, reflecting effective cost management strategies.
Despite a net loss for the quarter, Outset Medical remains optimistic about its long-term growth, with a strong order pipeline, nearly half in advanced sales stages. The company's resilience amid natural disasters and its ongoing commercial transformation were also highlighted. These are the recent developments that investors should note.
InvestingPro Insights
As Outset Medical's CEO Leslie Trigg sells shares to cover tax obligations, investors may be interested in a broader perspective on the company's financial health. According to InvestingPro data, Outset Medical's market capitalization stands at $38.51 million, reflecting its current valuation in the medical devices sector.
InvestingPro Tips highlight some challenges facing the company. One tip notes that Outset Medical is "quickly burning through cash," which could be a concern for investors considering the company's financial stability. Additionally, the stock "has taken a big hit over the last week," with a 1-week price total return of -18.16%, indicating recent market volatility.
Despite these challenges, it's worth noting that Outset Medical "operates with a moderate level of debt" and its "liquid assets exceed short-term obligations," suggesting some financial flexibility. The company's revenue for the last twelve months as of Q3 2024 was $114.73 million, with a gross profit margin of 30.97%.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Outset Medical, providing a deeper dive into the company's financial position and market performance.
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