Achieves Total Net Sales of $16.9 Million, Pro Forma Growth of 58% YoY, 72% on a GAAP Basis

Record miraDry Net Sales of $8.3 Million, Pro Forma Growth of 174% YoY, 282% on a GAAP Basis

Initiates International Expansion of Breast Implants with Health Canada Submission

SANTA BARBARA, Calif., Nov. 06, 2018 (GLOBE NEWSWIRE) -- Sientra, Inc. (NASDAQ: SIEN), a medical aesthetics company (“Sientra” or the “Company”), announced today its financial results for the third quarter ended September 30, 2018.

Jeff Nugent, Chairman and Chief Executive Officer of Sientra, commented, “In the third quarter, we continued to build momentum across the business, achieving a combined pro forma sales growth of 58% compared to the third quarter 2017. Our solid performance was driven by both segments with 13% year-over-year growth for Breast Products and another record quarter for miraDry with 174% year-over-year growth on a pro forma basis. As is relates to miraDry, we believe that targeted investments in our salesforce, brand awareness and product development initiatives, along with a large addressable market, will further enable significant segment growth going forward.”

Mr. Nugent continued, “We are also advancing our strategic objectives designed to position the Breast Products segment to recapture and grow our market share. As we ramp our implant manufacturing at Vesta, we remain confident in our ability to deliver robust organic growth within the segment as we continue to build supply in the quarters ahead.”

Mr. Nugent concluded, “During the third quarter, we also submitted our breast implant Medical Device License Application to Health Canada with an objective to launch breast implant and tissue expanders in Canada late in 2019. This expansion represents the first step to launch our Breast Products into desirable international markets. We are excited to take our FDA-approved Breast Products with superior 10-year clinical data into strategic markets outside the United States. With our third quarter achievements, we further validated Sientra’s progress in becoming a global diversified aesthetic leader.”

Third Quarter 2018 Financial Review

On a GAAP basis, total net sales for the third quarter 2018 were $16.9 million, an increase of 72% compared to total net sales of $9.8 million for the same period in 2017. Total net sales increased 58% on a pro forma basis year over year compared to pro forma total net sales of $10.7 million in third quarter 2017. Pro forma net sales assume the miraDry acquisition was completed on January 1, 2017.

Net sales for the Breast Products segment totaled $8.6 million in the third quarter 2018, a 13% increase compared to $7.7 million for third quarter 2017. Breast Products sales growth was primarily driven by continued strong performance of both our Allox2® and DermaSpan™ breast tissue expanders, partially offset by lower BIOCORNEUM® sales, and the impact of a change in revenue recognition accounting related to our Sientra Platinum20™ warranty program.

Net sales for the miraDry segment totaled $8.3 million in the third quarter 2018, a 174% increase on a pro forma basis compared to $3.0 million for the third quarter 2017.

Gross profit for the third quarter of 2018 was $10.5 million, or 62% of sales, compared to gross profit of $6.3 million, or 65% of sales, for the same period in 2017. The decrease in gross margin was primarily due to the inclusion of miraDry and the higher mix of capital and international sales which carries a lower margin than Breast Products.

Operating expenses for the third quarter of 2018 were $30.0 million, an increase of $9.8 million, compared to operating expenses of $20.2 million for the same period in 2017. Operating expenses in the third quarter 2018 were driven higher primarily by the inclusion of miraDry and the significant investment in its sales and marketing teams.

Net loss for the third quarter of 2018 was ($20.5) million, or ($0.72) per share, compared to a net loss of ($14.4) million, or ($0.74) per share, for the same period in 2017.

On a non-GAAP basis, the Company reported adjusted EBITDA loss of ($13.9) million for the third quarter 2018, compared to a loss of ($10.7) million for the third quarter 2017. The year over year increase can be mainly attributed to the inclusion of miraDry.

Net cash and cash equivalents as of September 30, 2018 were $103.0 million, compared to $112.6 million at the end of the second quarter of 2018.

Additional information on the Company’s financial results can be found in Sientra’s Supplemental Financial and Operational Information schedule by visiting the Investor Relations section of Sientra’s website at www.sientra.com.

Conference CallSientra will hold a conference call today, November 6, 2018 at 1:30 p.m. PT/4:30 p.m. ET to discuss the results.

The dial-in numbers are (844) 464-3933 for domestic callers and (765) 507-2612 for international callers. The conference ID is 8754727. A live webcast of the conference call will be available on the Investor Relations section of the Company's website at www.sientra.com.

A replay of the call will be available starting on November 6, 2018 at 4:30 p.m. PT/7:30 p.m. ET, through November 13, 2018 at 8:59 p.m. PT/11:59 p.m. ET. To access the replay, dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers and use the replay conference ID 8754727. The webcast will be available on the Investor Relations section of the Company’s website for 30 days following the completion of the call.

Use of Non-GAAP Financial Measures

Sientra has supplemented its US GAAP net income (loss) with a non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the Company, facilitates a more meaningful comparison of results for current periods with previous operating results, and assists management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation of non-GAAP Adjusted EBITDA to GAAP net income (loss), the most directly comparable GAAP measure, is provided in the schedule below.

There are limitations in using this non-GAAP financial measure because it is not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. This non-GAAP financial measure should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with Sientra’s financial statements prepared in accordance with GAAP and the reconciliations of the non-GAAP financial measure provided in the schedule below.

About SientraHeadquartered in Santa Barbara, California, Sientra is a medical aesthetics company committed to making a difference in patients’ lives by enhancing their body image, boosting their self-esteem and restoring their confidence. The Company was founded to provide greater choice to board-certified plastic surgeons and patients in need of medical aesthetics products. The Company has developed a broad portfolio of products with technologically differentiated characteristics, supported by independent laboratory testing and strong clinical trial outcomes. The Company sells its OPUS™ brand of breast implants and breast tissue expanders exclusively to board-certified and board-admissible plastic surgeons and tailors its customer service offerings to their specific needs. The Company also offers a range of other aesthetic and specialty products including BIOCORNEUM®, the professional choice in scar management, and miraDry®, the only FDA-cleared device to reduce underarm sweat, odor and permanently reduce hair of all colors.

For more information about Sientra, visit www.sientra.com. Find Sientra on Facebook, Twitter, LinkedIn and Instagram.

Forward-Looking StatementsThis press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements include, but are not limited to, statements regarding whether the Company’s investments in its salesforce, brand awareness and product development initiatives, along with a large addressable market, will further enable significant segment growth in its miraDry segment going forward, the Company’s ability to regain share in the U.S. breast implant market, the timing and ability to offer the Company’s breast products in international markets, the Company’s ability to deliver value and become a world class, diversified aesthetics organization, and the Company’s ability to finance its near and long-term strategic growth initiatives. Such statements are subject to risks and uncertainties, including the dependence on conclusion of review procedures for the quarter ended September 30, 2018 by the Company’s independent auditors, positive reaction from plastic surgeons and their patients to Sientra’s Breast Products, risks associated with contracting with any third-party manufacturer and supplier, including uncertainties that such parties will be able to meet consumer demand, that the integration of recently acquired product lines will not achieve the anticipated benefits. Additional factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of Sientra’s Annual Report on Form 10-K for the year ended December 31, 2017. All statements other than statements of historical fact are forward-looking statements. The words ‘‘believe,’’ ‘‘may,’’ ‘‘might,’’ ‘‘could,’’ ‘‘will,’’ ‘‘aim,’’ ‘‘estimate,’’ ‘‘continue,’’ ‘‘anticipate,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement.

Investor Contacts:

Paul LittleSientra, Chief Financial Officer (805) 679-8832 paul.little@sientra.com

Tram Bui / Brian Johnston The Ruth Group (646) 536-7035 / (646) 536-7028 ir@sientra.com

Sientra, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share and share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ---------------------------- ---------------------------- 2018 2017 2018 2017 ------------ ------------ ------------ ------------ Net sales $ 16,875 $ 9,819 $ 49,104 $ 25,477 Cost of goods sold 6,398 3,484 19,154 8,427 - ---------- - ---------- - ---------- - ---------- Gross profit 10,477 6,335 29,950 17,050 - ---------- - ---------- - ---------- - ---------- Operating expenses: Sales and marketing 15,254 7,981 45,990 21,100 Research and development 2,881 2,911 7,930 7,677 General and administrative 11,904 9,298 31,419 23,753 Legal settlement — — — 10,000 - ---------- - ---------- - ---------- - ---------- Total operating expenses 30,039 20,190 85,339 62,530 - ---------- - ---------- - ---------- - ---------- Loss from operations (19,562 ) (13,855 ) (55,389 ) (45,480 ) Other income (expense), net: Interest income 133 54 214 112 Interest expense (953 ) (409 ) (2,474 ) (603 ) Other income (expense), net (163 ) (155 ) (347 ) (151 ) - ---------- - ---------- - ---------- - ---------- Total other income (expense), net (983 ) (510 ) (2,607 ) (642 ) - ---------- - ---------- - ---------- - ---------- Loss before income taxes (20,545 ) (14,365 ) (57,996 ) (46,122 ) Income taxes — 16 — 70 - ---------- - ---------- - ---------- - ---------- Net loss $ (20,545 ) $ (14,381 ) $ (57,996 ) $ (46,192 ) - ---------- - ---------- - ---------- - ---------- Basic and diluted net loss per share $ (0.72 ) $ (0.74 ) $ (2.39 ) $ (2.42 ) attributable to common stockholders - ---------- - ---------- - ---------- - ---------- Weighted average outstanding common shares used for net loss per share attributable to common stockholders: Basic and diluted 28,462,975 19,328,244 24,312,300 19,079,788 - ---------- - ---------- - ---------- - ----------

2017 includes the results of miraDry as of the acquisition date of 7/25/2017

Sientra, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September December 30, 31, 2018 2017 --------- -------- Assets Current assets: Cash and cash equivalents $ 103,008 $ 26,588 Accounts receivable, net 18,956 6,569 Inventories, net 22,909 20,896 Prepaid expenses and other current assets 3,482 1,512 - ------- - ------ Total current assets 148,355 55,565 Property and equipment, net 2,440 4,763 Goodwill 12,507 12,507 Other intangible assets, net 17,069 18,803 Other assets 709 575 - ------- - ------ Total assets $ 181,080 $ 92,213 - ------- - ------ Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 3,356 $ 24,639 Accounts payable 11,510 5,811 Accrued and other current liabilities 25,218 13,474 Legal settlement payable 410 1,000 Customer deposits 7,706 5,423 Refund liability 5,335 — - ------- -------- Total current liabilities 53,535 50,347 Long-term debt 31,361 — Deferred and contingent consideration 6,330 12,597 Warranty reserve and other long-term liabilities 1,877 1,646 - ------- - ------ Total liabilities 93,103 64,590 - ------- - ------ Stockholders’ equity: Total stockholders’ equity 87,977 27,623 - ------- - ------ Total liabilities and stockholders’ equity $ 181,080 $ 92,213 - ------- - ------

Sientra, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited)

Nine months ended September 30, ---------------------- 2018 2017 --------- --------- Cash flows from operating activities: Net loss $ (57,996 ) $ (46,192 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,500 2,037 Provision for doubtful accounts 996 84 Provision for warranties 2 133 Provision for inventory 708 468 Amortization of acquired inventory step-up 106 802 Change in fair value of warrants 333 151 Change in fair value of deferred consideration 18 (10 ) Change in fair value of contingent consideration 2,178 768 Change in deferred revenue 275 — Non-cash portion of debt extinguishment loss — 16 Amortization of debt discount and issuance costs 132 97 Non-cash interest expense — 1 Stock-based compensation expense 10,077 4,777 Loss on disposal of property and equipment — 12 Deferred income taxes — 70 Changes in assets and liabilities, net of effects from acquisitions: Accounts receivable (9,476 ) 411 Inventories (2,827 ) 1,208 Prepaid expenses, other current assets and other assets (2,168 ) (2,083 ) Insurance recovery receivable 33 9,300 Accounts payable 6,780 (478 ) Accrued and other liabilities 3,789 3,613 Legal settlement payable (590 ) (9,900 ) Customer deposits 2,283 (987 ) Sales return liability 1,429 — - ------- - ------- Net cash used in operating activities (41,418 ) (35,702 ) - ------- - ------- Cash flows from investing activities: Purchase of property and equipment (414 ) (1,173 ) Business acquisitions, net of cash acquired — (18,455 ) - ------- - ------- Net cash used in investing activities (414 ) (19,628 ) - ------- - ------- Cash flows from financing activities: Proceeds from exercise of stock options 1,149 1,327 Proceeds from issuance of common stock under ESPP 993 647 Tax payments related to shares withheld for vested restricted stock units (RSUs) (1,419 ) (569 ) Net proceeds from issuance of common stock 107,551 — Gross borrowings under the Term Loan 10,000 25,000 Gross borrowings under the Revolving Loan 12,109 5,000 Repayment of the Revolving Loan (12,109 ) (5,000 ) Deferred financing costs (22 ) (646 ) - ------- - ------- Net cash provided by financing activities 118,252 25,759 - ------- - ------- Net increase (decrease) in cash and cash equivalents 76,420 (29,571 ) Cash and cash equivalents at: Beginning of period 26,588 67,212 - ------- - ------- End of period $ 103,008 $ 37,641 - ------- - -------

2017 includes the results of miraDry as of the acquisition date of 7/25/2017

Sientra, Inc. Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- Dollars, in thousands 2018 2017 2018 2017 --------- --------- --------- --------- Net loss, as reported $ (20,545 ) $ (14,381 ) $ (57,996 ) $ (46,192 ) - ------- - ------- - ------- - ------- Adjustments to net loss: Interest (income) expense and other, net 983 510 2,607 642 Provision for income taxes - 16 - 70 Depreciation and amortization - COGS 145 425 467 847 Depreciation and amortization - G&A 605 692 1,823 1,614 Depreciation and amortization - S&M 30 30 92 106 Depreciation and amortization - R&D 20 115 224 272 Accretion in fair value adjustments to contingent 470 306 2,178 768 consideration Legal settlement expense - - - 10,000 Stock-based compensation 4,391 1,595 10,077 4,777 - ------- - ------- - ------- - ------- Total adjustments to net loss 6,644 3,689 17,468 19,096 - ------- - ------- - ------- - ------- Adjusted EBITDA $ (13,901 ) $ (10,692 ) $ (40,528 ) $ (27,096 ) - ------- - ------- - ------- - ------- Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- As a Percentage of Revenue** 2018 2017 2018 2017 --------- --------- --------- --------- Net loss, as reported (121.7 %) (146.5 %) (118.1 %) (181.3 %) - ------- - ------- - ------- - ------- Adjustments to net loss: Interest (income) expense and other, net 5.8 % 5.2 % 5.3 % 2.5 % Provision for income taxes 0.0 % 0.2 % 0.0 % 0.3 % Depreciation and amortization - COGS 0.9 % 4.3 % 1.0 % 3.3 % Depreciation and amortization - G&A 3.6 % 7.0 % 3.7 % 6.3 % Depreciation and amortization - S&M 0.2 % 0.3 % 0.2 % 0.4 % Depreciation and amortization - R&D 0.1 % 1.2 % 0.5 % 1.1 % Accretion in fair value adjustments to contingent 2.8 % 3.1 % 4.4 % 3.0 % consideration Legal settlement expense 0.0 % 0.0 % 0.0 % 39.3 % Stock-based compensation 26.0 % 16.2 % 20.5 % 18.8 % - ------- - ------- - ------- - ------- Total adjustments to net loss 39.4 % 37.6 % 35.6 % 75.0 % - ------- - ------- - ------- - ------- Adjusted EBITDA (82.4 %) (108.9 %) (82.5 %) (106.4 %) - ------- - ------- - ------- - -------

2017 includes the results of miraDry as of the acquisition date of 7/25/2017** Adjustments may not add to the total figure due to rounding

Sientra, Inc. Non-GAAP Pro Forma Net Sales (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- Dollars, in thousands 2018 2017 2018 2017 -------- -------- -------- -------- Net sales - pro forma $ 16,875 $ 10,668 $ 49,104 $ 35,681 - ------ - ------ - ------ - ------

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