Obalon Therapeutics, Inc. :OBLN-US: Earnings Analysis: 2016 By the Numbers : March 10, 2017

Obalon Therapeutics, Inc. reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of Obalon Therapeutics, Inc. – NuVasive, Inc. (NUVA-US) that have also reported for this period.

Highlights

  • Gross margins narrowed from 38.03% to 17.21% compared to the same period last year, operating (EBITDA) margins now -569.20% from -365.59%.
  • Year-on-year change in operating cash flow of -70.01% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016 2015 2014 N/A N/A
Relevant Numbers (Annual)
Revenues 3.39 4.04 3.54 N/A N/A
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -20.47 -15.56 -9.89 N/A N/A
Earnings Growth (YOY) -31.56 -57.3 N/A N/A N/A
Net Margin -603.21 -385.17 -279.46 N/A N/A
EPS -4.85 -0.93 -0.59 N/A N/A
Return on Equity -64.09 -214.14 -66.07 N/A N/A
Return on Assets -44.02 -89.05 -47.73 N/A N/A
IMPORTANT SAFETY INFORMATION
The Obalon Balloon System is intended for adults with a body mass index (BMI) of 30 to 40 kg/m2 willing to follow a diet and exercise program. All Obalon balloons must be removed in 6 months. Patients with prior weight loss surgeries are not eligible. The most common side effects reported were mild abdominal pain and nausea which typically resolved within two weeks. You must take daily acid-blocking medicine prescribed by your doctor. For full Important Safety Information click on Safety Information and Patient Labeling.