Augmedix, Inc. (Nasdaq: AUGX), a leading digital health platform
that offers virtual medical documentation and live clinical
support, today reported financial results for the three months
ended September 30, 2021.
“In the third quarter, we delivered strong revenue growth and
steady gross margin improvement driven by a team that is dedicated
to leading the way in clinical documentation innovation,” said
Manny Krakaris, Chief Executive Officer of Augmedix. “In
recognition of the value we are delivering, a couple of our major
enterprise accounts have recently renewed their contracts with
Augmedix and we recently executed new strategic partnerships with
Google and the National Cooperative of Health Networks Association.
As we approach year end, we are pleased with our strong financial
and operational performance and our continued innovation efforts.
We are looking forward to the next stage of growth, which will be
underpinned by the completion of our public offering and listing on
the Nasdaq in October.”
CEO Manny Krakaris further commented, "The overarching goal of
our technology platform and offering is to allow clinicians to
focus on patient care, as exemplified by comments made by Dr.
Jeffery Davies, an Emergency Department Medical Director at Dignity
Ventura." Dr. Davies stated, "The Augmedix platform is extremely
valuable, especially in the emergency department. It supports the
important work of keeping patients moving and capturing key details
from the natural patient conversation that would otherwise be
impossible for clinicians during busy shifts. The fact that
Augmedix is virtual ensures additional team members are not getting
in the way of the care team. Furthermore, Augmedix loads my
procedures in advance and customizes the note, which saves me
time."
Third Quarter 2021 Financial and Operational
Highlights All comparisons, unless otherwise noted, are to
the three months ended September 30, 2020.
- Total revenue was $5.6 million, an increase of 33% compared to
$4.2 million.
- Dollar-based Net Revenue Retention was 122% for our Health
Enterprise customers compared to 129% in 2Q21 and 113% in the third
quarter of 2020.
- Clinicians in Service were 834 as of September 30, 2021, an
increase of 51% compared to 551 as of September 30, 2020. Average
clinicians in service were 784 in the third quarter of 2021, an
increase of 42% from 552 in the same quarter of 2020.
- GAAP gross margin expanded 81 basis points to 45.0% compared to
44.2%. Cost of revenue increased by 31%. Adjusted gross margin,
which excludes stock-based compensation, grew to 45.3% from
44.3%.
- GAAP operating expenses were $7.2 million compared to $5.2
million. Operating expenses grew due to investment into both our
sales capacity and marketing; additional software developers as we
enhanced our AI-driven Notebuilder tool; and incremental costs
associated with being a public company. Expenses in the third
quarter of 2020 were approximately $0.4 million lower due to
temporary salary reductions and furloughs attributable to the
COVID-19 pandemic. Adjusted operating expenses, which exclude
stock-based compensation and one-time items, were $6.8 million
versus $4.4 million as of September 30, 2020.
- Stock-based compensation expense was $0.4 million compared to
$0.1 million.
- Net loss was $2.9 million compared to $4.1 million. The net
loss in the third quarter of 2021 benefited from the $2.2 million
gain from the Paycheck Protection Program (“PPP”) loan
forgiveness.
- EBITDA losses were $2.1 million compared to $3.5 million.
Adjusted EBITDA losses were $3.9 million compared to $2.6 million,
which excludes stock-based compensation and one-time items in both
periods.
- Cash and restricted cash as of September 30, 2021, was $11.1
million.
Adjusted gross margin, Adjusted operating expenses, EBITDA and
Adjusted EBITDA are a Non-GAAP financial measure. See “Non-GAAP
Financial Measures”.
Conference CallAugmedix will host a conference
call at 1:30 p.m. PT / 4:30 p.m. ET on Tuesday, November 9, 2021,
to discuss its third quarter 2021 financial results. The call may
be accessed through an operator by calling (877) 407-3982 for
domestic callers and (201) 493-6780 for international callers using
conference ID: 13723538. A live and archived webcast of the event
will be available at https://ir.augmedix.com/.
Definition of Key MetricsDollar-Based Net
Revenue Retention: We define a "Health Enterprise" as a company or
network of doctors that has at least 50 clinicians currently
employed or affiliated that could utilize our services.
Dollar-based net revenue retention is determined as the revenue
from Health Enterprises as of twelve months prior to such period
end as compared to revenue from these same Health Enterprises as of
the current period end, or current period revenue. Current period
revenue includes any expansion or new products and is net of
contraction or churn over the trailing twelve months but excludes
revenue from new Health Enterprises in the current period. We
believe growth in dollar-based net revenue retention is a key
indicator of the performance of our business as it demonstrates our
ability to increase revenue across our existing customer base
through expansion of users and products, as well as our ability to
retain existing customers.
Clinicians in Service: We define a clinician in service as an
individual doctor, nurse practitioner or other healthcare
professional using our services. Clinicians in service is
determined as the total clinicians in service as of the period end.
We believe growth in the number of clinicians in service is an
indicator of the performance of our business as it demonstrates our
ability to penetrate the market and grow our business.
About Augmedix Augmedix, Inc. (Nasdaq: AUGX) is
a leading digital health platform that offers virtual medical
documentation and live clinical support to large healthcare systems
and physician practices, supporting medical offices, clinics,
hospitals, emergency departments and telemedicine practices
nationwide. The Company’s Ambient Automation Platform converts the
natural conversation between physicians and patients into timely
and comprehensive medical notes and provides a suite of related
services. The medical note is generated using Augmedix’s
proprietary platform, which incorporates structured data models,
automatic speech recognition and natural language processing and is
overseen by trained medical documentation specialists. Augmedix
saves physicians up to 3 hours per day, improves productivity by as
much as 20%, and increases satisfaction with work-life balance by
over 40%. To learn more about Augmedix, visit augmedix.com.
Non-GAAP Financial MeasuresTo supplement our
consolidated financial statements, which are prepared and presented
in accordance with GAAP, we use the following non-GAAP financial
measures: adjusted cost of revenue, adjusted gross profit, adjusted
gross margin, adjusted operating expenses, EBITDA, and adjusted
EBITDA. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP.
We use these non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate
period-to-period comparisons. We believe that these non-GAAP
financial measures provide meaningful supplemental information
regarding our performance by excluding certain items that may not
be indicative of our recurring core business operating results,
like one-time transaction costs related to the reverse merger and
OTC listing. We believe that both management and investors benefit
from referring to these non-GAAP financial measures in assessing
our performance and when planning, forecasting, and analyzing
future periods. These non-GAAP financial measures also facilitate
management's internal comparisons to our historical performance and
liquidity as well as comparisons to our competitors' operating
results. We believe these non-GAAP financial measures are useful to
investors both because (1) they allow for greater transparency with
respect to key metrics used by management in its financial and
operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them
analyze the health of our business.
There are a number of limitations related to the use of non-GAAP
financial measures. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures and evaluating these
non-GAAP financial measures together with their relevant financial
measures in accordance with GAAP.
Forward-Looking Statements This press release
contains "forward-looking statements" that involve a number of
risks and uncertainties. Words such as "believes," "may," "will,"
"estimates," "potential," "continues," "anticipates," "intends,"
"expects," "could," "would," "projects," "plans," "targets," and
variations of such words and similar expressions are intended to
identify forward-looking statements. Such forward-looking
statements include, without limitation, statements regarding our
next stage of growth and the overarching goal of our technology
platform and offering. Forward-looking statements are based on
management's expectations as of the date of this filing and are
subject to a number of risks, uncertainties and assumptions, many
of which involve factors or circumstances that are beyond our
control. Our actual results could differ materially from those
stated or implied in forward-looking statements due to a number of
factors, including but not limited to, those factors described in
the “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of our most
recent Form 10-K and Form 10-Q filed with the Securities and
Exchange Commission, and similar disclosures in subsequent reports
filed with the SEC. In particular, the following factors, among
others, could cause results to differ materially from those
expressed or implied by such forward-looking statements: our
expectations regarding changes in regulatory requirements; our
ability to interoperate with the electronic health record systems
of our customers; our reliance on vendors; our ability to attract
and retain key personnel; the competition to attract and retain
remote documentation specialists; anticipated trends, growth rates,
and challenges in our business and in the markets in which we
operate; our ability to further penetrate our existing customer
base; our ability to protect and enforce our intellectual property
protection and the scope and duration of such protection;
developments and projections relating to our competitors and our
industry, including competing dictation software providers,
third-party, non-real time medical note generators and real time
medical note documentation services; the impact of current and
future laws and regulations; the impact of the COVID-19 crisis on
our business, results of operations and future growth prospects.
Past performance is not necessarily indicative of future results.
The forward-looking statements included in this press release
represent our views as of the date of this press release. We
anticipate that subsequent events and developments will cause our
views to change. We undertake no intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. These forward-looking
statements should not be relied upon as representing our views as
of any date subsequent to the date of this press release.
Investors:Caroline PaulGilmartin
Groupinvestors@augmedix.com
Media:Kaila GrafemanAugmedixpr@augmedix.com
AUGMEDIX, INC. |
Condensed Consolidated Statements of
Operations |
(Unaudited, in thousands except Average Clinicians in
Service) |
|
|
Three Months Ended |
|
September 30, |
|
2021 |
|
2020 |
Revenue |
$ |
5,625 |
|
|
$ |
4,245 |
|
Cost of revenues |
|
3,092 |
|
|
|
2,368 |
|
Gross profit |
|
2,533 |
|
|
|
1,877 |
|
Operating expenses |
|
|
|
General and administrative |
|
3,238 |
|
|
|
3,336 |
|
Sales and marketing |
|
2,157 |
|
|
|
887 |
|
Research and development |
|
1,810 |
|
|
|
1,009 |
|
Total operating expenses |
|
7,205 |
|
|
|
5,232 |
|
Loss from operations |
|
(4,672) |
|
|
|
(3,355) |
|
|
|
|
|
Other income (expense), net |
|
1,813 |
|
|
|
(761) |
|
Net loss |
$ |
(2,859) |
|
|
$ |
(4,116) |
|
|
|
|
|
Average Clinicians in Service |
|
784 |
|
|
|
552 |
|
Clinicians in Service end of period |
|
834 |
|
|
|
551 |
|
AUGMEDIX, INC. |
Reconciliation of GAAP to Non-GAAP Metrics |
(Unaudited, in thousands) |
|
|
Three Months Ended |
|
September 30, |
Stock Based Compensation Expense |
2021 |
|
2020 |
Cost of revenues |
$ |
14 |
|
|
$ |
3 |
|
General and administrative |
|
258 |
|
|
|
69 |
|
Sales and marketing |
|
31 |
|
|
|
18 |
|
Research and development |
|
68 |
|
|
|
9 |
|
Total stock-based compensation expense |
$ |
371 |
|
|
$ |
99 |
|
|
|
|
|
Net loss |
$ |
(2,859) |
|
|
$ |
(4,116) |
|
Interest expense |
|
589 |
|
|
|
402 |
|
Tax |
|
37 |
|
|
|
26 |
|
Depreciation and Amortization |
|
156 |
|
|
|
213 |
|
EBITDA |
$ |
(2,077) |
|
|
$ |
(3,475) |
|
Stock-based compensation expense |
|
371 |
|
|
|
99 |
|
Transaction related expense |
|
|
|
753 |
|
Less: Forgiveness of PPP loan |
|
(2,180) |
|
|
|
- |
|
Adjusted EBITDA |
$ |
(3,886) |
|
|
$ |
(2,623) |
|
|
|
|
|
GAAP Cost of Revenues |
$ |
3,092 |
|
|
$ |
2,368 |
|
Less: Stock-based compensation expense |
|
(14) |
|
|
|
( 3) |
|
Adjusted cost of revenues |
|
3,078 |
|
|
|
2,365 |
|
Non-GAAP gross profit |
$ |
2,547 |
|
|
$ |
1,880 |
|
Adjusted gross margin |
|
45.3% |
|
|
|
44.3% |
|
|
|
|
|
GAAP Operating Expenses |
$ |
7,205 |
|
|
$ |
5,232 |
|
Less: Stock-based compensation expense |
|
(357) |
|
|
|
(96) |
|
Less: Transaction related expense |
|
|
|
(753) |
|
Non-GAAP Operating Expenses |
$ |
6,848 |
|
|
$ |
4,383 |
|
|
|
|
|
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