ShockWave Medical (SWAV), a medical device company focused on treating calcified plaque, reported its second-quarter earnings on Monday.

Revenue landed at $10 million for the quarter, which represented a 339% increase over the year-ago period. Management credited the huge gains to strong demand in both the U.S. and international markets, and raised full-year revenue guidance as a result.

ShockWave Medical's second-quarter results: The raw numbers


Q2 2019

Q2 2018



$10.0 million

$2.3 million


Net income (loss)

($10.6 million)

($10.1 million)


Earnings per share




Data source: ShockWave Medical.

What happened with ShockWave this quarter?

  • U.S. revenue grew 239% to $5.2 million. The increase was credited to strong sales of its M5 IVL catheter, which is the company's above-the-knee catheter that treats peripheral artery disease (PAD).
  • International sales grew 543% to $4.8 million, mostly driven by strong growth in its C2 coronary product, which is used to treat coronary artery disease (CAD).
  • ShockWave's products are now available for sale in 33 countries.
  • Gross margin expanded 1,100 basis points to 59%. The gains were due to increased efficiencies and fixed cost absorption.
  • Operating expenses ballooned 51% to $17.1 million, driven mostly by commercial expansion and increased spending on clinical programs.
  • Net loss was $10.6 million, or $0.38 per share. Wall Street expected a net loss of $0.53 per share.
  • Cash balance at quarter-end was $125.1 million.
Doctors with scrubs on performing surgery

Image source: Getty Images.

What management had to say

CEO Doug Godshall was pleased with the company's second-quarter performance:

We continue to be encouraged by our results thus far in 2019 -- both financially and operationally -- as our organization continues to improve execution on all fronts. The balanced mix of our products, both geographically and clinically, combined with the strong interest from physicians, speaks to the versatility of our IVL technology and its ability to help patients with complex calcified cardiovascular disease. Our progress operationally, clinically and financially is encouraging and gives us confidence to continue expanding and enhancing our team.

Check out the latest earnings call transcript for ShockWave.

Looking forward

The strong quarterly results enabled management to raise its revenue guidance for the full year. The company now expects sales to land between $38 million and $40 million, which represents growth of about 218% at the midpoint. That's up from its prior guidance range of $33 million to $36 million and compares favorably to the $35.4 million that Wall Street was expecting. 

ShockWave's stock rose a little bit in early morning trading following the earnings release. The jump is most likely attributable to the strong quarterly results and guidance boost.

Godshall ended his prepared remarks on the conference call by stating that the company's momentum continues to build upon itself: "We are so pleased with the progress our company and technology have made and are grateful for the exceptional support we've received from physicians around the world. These accomplishments each quarter are building upon each other to establish ShockWave as an effective solution that can help transform the way that calcified cardiovascular disease is treated."