Augmedix (Nasdaq: AUGX), a healthcare technology company that
delivers industry-leading ambient medical documentation and data
solutions to healthcare systems, physician practices, hospitals,
and telemedicine practitioners, today reported financial results
for the three and six months ended June 30, 2023.
“This was another strong quarter for Augmedix,
as we continue to solidify our position within the burgeoning
ambient medical documentation market,” commented Manny Krakaris,
Chief Executive Officer at Augmedix. “We set records for revenue,
growing 47% year-over-year, and dollar-based net revenue retention
at 148%, demonstrating that health systems and clinicians
increasingly value and are adopting our products. We also expanded
gross margins by 330 basis points to 47.0% as we realize the
inherent leverage of our recurring revenue model with our
increasing scale of operations.”
Continued Mr. Krakaris, “Augmedix’s products are
resonating with clinicians due to their ability to generate
accurate medical notes while providing high levels of transparency
and control. Our customers also value the breadth of our product
portfolio and their ability to toggle across our product lineup to
best match the particular needs of a given patient encounter. We
are seeing growing adoption of Augmedix Notes among our largest
customers, and high interest for Augmedix Go, which is currently
being tested with multiple customers in the ambulatory setting and
with HCA Healthcare in the acute care setting, and is on track to
be launched commercially later this year.”
Concluded Mr. Krakaris, “Looking ahead, with the
structured data that we capture at the point of care, Augmedix is
in a unique position to offer even greater value to the healthcare
ecosystem that transcends the patient encounter. We are moving
swiftly to deliver innovative data solutions that will help remove
systemic inefficiencies in healthcare billing and reimbursement. We
are excited about the future of Augmedix as a platform that will
appeal to several constituents within the industry.”
Second Quarter 2023 Financial and
Operational Highlights
All comparisons, unless otherwise noted, are to the three months
ended June 30, 2022.
- Total revenue was $10.8 million, an increase of 47% compared to
$7.3 million.
- Dollar-based Net Revenue Retention was 148% for Health
Enterprise customers compared to 131% in the second quarter of 2022
and 136% in the first quarter of 2023.
- Average Clinicians in Service grew 48%.
- GAAP Gross Margin increased 330 basis points to 47.0% compared
to 43.7%.
- GAAP Operating Expenses were $10.0 million, up 9% compared to
$9.1 million.
- GAAP Net Loss narrowed to $5.0 million compared to $7.3
million.
- EBITDA losses declined to $4.2 million compared to $6.7
million. Adjusted EBITDA losses declined to $3.6 million compared
to $5.1 million, which excludes stock-based compensation in both
periods and a loss on debt extinguishment. Adjusted EBITDA losses
again declined sequentially from $4.1 million in the first quarter
of 2023.
- Cash, cash equivalents, and restricted cash were $25.3 million
as of June 30, 2023, compared to $22.0 million as of December 31,
2022.
- Bolstered financial strength via multiple previously announced
balance sheet initiatives, including the $12 of million new equity
from HCA Healthcare and Redmile Group LLC, the extension of the
term loan facility and interest-only period by up to 18 months, and
the finalization of the $5 million equity line of credit.
- Established AI Advisory Council to demonstrate Augmedix’s
commitment to responsible product development.
Non-GAAP operating expenses, EBITDA and Adjusted
EBITDA are a Non-GAAP financial measure. Please see “Non-GAAP
Financial Measures” below and the Reconciliation of the GAAP to
Non-GAAP Financial Measures table below in this press release.
2023 Revenue Guidance
Augmedix now expects at least $43.5 million of
revenue in 2023.
Conference Call
Augmedix will host a conference call at 1:30
p.m. PT / 4:30 p.m. ET on Monday, August 7, 2023, to discuss its
second quarter 2023 financial results. The conference call can be
accessed by dialing +1-877-407-3982 for U.S. participants or
+1-201-493-6780 for international participants and referencing
conference ID #13740298. Interested parties may access a live and
archived webcast of the event on the “Investor Relations” section
of the Company’s website at: ir.augmedix.com.
Definition of Key Metrics
Dollar-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. We average the
month-end number of clinicians in service for all months in the
measurement period and the number of clinicians in service at the
end of the month immediately preceding the measurement
period. 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 AugmedixAugmedix (Nasdaq:
AUGX) delivers industry-leading, ambient medical documentation and
data solutions to healthcare systems, physician practices,
hospitals, and telemedicine practitioners. Augmedix is on a mission
to help clinicians and patients form a human connection at the
point of care with unobtrusive technology. Augmedix’s proprietary
Notebuilder Platform extracts relevant data from natural
clinician-patient conversations and converts that data into medical
notes in real time, which are seamlessly transferred to the EHR.
The company’s platform uses automatic speech recognition, natural
language processing, including large language models, and medical
documentation specialists to generate accurate and timely medical
notes. Leveraging this platform, Augmedix’s products relieve
clinicians of administrative burden, in turn, reducing burnout and
increasing both clinician and patient satisfaction. Augmedix is
also leading the revolution in transforming point-of-care
information into valuable structured data that can drive lower
revenue cycle management costs, higher reimbursement levels and
deliver important clinical feedback to the point of care. Augmedix
is headquartered in San Francisco, CA, with offices around the
world. To learn more, visit www.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: Non-GAAP gross profit,
Non-GAAP gross margin, Non-GAAP 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. 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.
For more information on the non-GAAP financial
measures, please see the Reconciliation of GAAP to non-GAAP
Financial Measures table in this press release. This accompanying
table includes details on the GAAP financial measures that are most
directly comparable to Non-GAAP financial measures and the related
reconciliations between these financial measures.
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," “excited,” “optimistic,” and
variations of such words and similar expressions are intended to
identify forward-looking statements. Such forward-looking
statements include, without limitation, statements regarding the
Company continuing to solidify its position within the burgeoning
ambient medical documentation market; the Company’s demonstration
that health systems and clinicians increasingly value and are
adopting the Company’s products; the Company’s realization of the
inherent operating leverage of its recurring revenue model with its
increasing scale of operations; our customers valuing the breadth
of our product portfolio; our customers valuing their ability to
toggle across our product lineup; the Company’s seeing growing
adoption of Notes among its largest customers, and high interest
for Go which is currently being tested; the timing for the launch
of Go; Augmedix being in a unique position to offer even greater
value to the healthcare ecosystem; moving swiftly to deliver
innovative data solutions that will help remove systemic
inefficiencies in healthcare billing and reimbursement; the
Company’s excitement about Augmedix as a platform that will appeal
to several constituents within the industry; and the Company’s
expectations regarding revenues for the full fiscal year
2023. 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, risks detailed in
our most recent Form 10-K filed with the Securities and Exchange
Commission on April 17, 2023 as well as other documents that may be
filed by us from time to time with the Securities and Exchange
Commission. 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; and the impact of current and future laws and
regulations. 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.
Contact Information
Investors:Matt Chesler, CFAFNK IR(646)
809-2183augx@fnkir.cominvestors@augmedix.com
Media:Kaila GrafemanAugmedixpr@augmedix.com
AUGMEDIX, INC.
Condensed Consolidated Statements of
Operations(Unaudited, in thousands except EPS and
Average Clinicians in Service)
|
|
|
Three Months Ended |
|
June 30, |
|
(unaudited) |
|
|
2023 |
|
|
2022 |
|
Revenue |
$ |
10,780 |
|
$ |
7,333 |
|
Cost of revenue |
|
5,715 |
|
|
4,131 |
|
Gross profit |
|
5,065 |
|
|
3,202 |
|
Operating Expenses |
|
|
General and administrative |
|
4,760 |
|
|
4,172 |
|
Sales and marketing |
|
2,649 |
|
|
2,320 |
|
Research and development |
|
2,590 |
|
|
2,649 |
|
Total operating expenses |
|
9,999 |
|
|
9,141 |
|
Loss from operations |
|
(4,934 |
) |
|
(5,939 |
) |
|
|
|
Other income (expense), net |
|
(99 |
) |
|
(1,396 |
) |
Net loss |
$ |
(5,033 |
) |
$ |
(7,335 |
) |
|
|
|
Weighted Average common stock
outstanding |
|
43,608 |
|
|
37,416 |
|
|
|
|
Earnings Per Share |
($0.12 |
) |
($0.20 |
) |
|
|
|
Average Clinicians in Service
(CIS) |
|
1,534 |
|
|
1,040 |
|
AUGMEDIX, INC.Condensed
Consolidated Balance Sheet(Unaudited, in
thousands)
|
June 30, |
December 31, |
|
|
2023 |
|
|
2022 |
|
Assets |
|
Cash, cash equivalents, and
restricted cash |
$ |
25,260 |
|
$ |
21,988 |
|
Accounts receivables, net |
|
9,433 |
|
|
6,354 |
|
Other assets |
|
9,155 |
|
|
5,299 |
|
Total assets |
|
43,848 |
|
|
33,641 |
|
|
|
|
Liabilities &
Stockholders’ Equity |
|
|
Liabilities |
|
|
Accounts payable |
$ |
1,604 |
|
$ |
1,563 |
|
Deferred revenue |
|
7,858 |
|
|
7,254 |
|
Loan payable |
|
19,932 |
|
|
15,134 |
|
Other liabilities |
|
10,465 |
|
|
8,224 |
|
Total liabilities |
$ |
39,859 |
|
$ |
32,175 |
|
Stockholders’ equity |
$ |
3,989 |
|
$ |
1,466 |
|
Total liabilities &
stockholders’ equity |
$ |
43,848 |
|
$ |
33,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AUGMEDIX, INC.Condensed
Consolidated Statement of Cash Flows(Unaudited, in
thousands)
|
Six Months
Ended |
|
|
June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows
from operating activities |
|
$ |
(12,175 |
) |
|
$ |
(8,856 |
) |
Cash flows
from investing activities |
|
|
(1,480 |
) |
|
|
(615 |
) |
Cash flows
from financing activities |
|
|
16,974 |
|
|
|
(1,248 |
) |
Effect of
exchange rate changes on cash and restricted cash |
|
|
(47 |
) |
|
|
(90 |
) |
Net decrease
in cash |
|
$ |
3,272 |
|
|
$ |
(10,809 |
) |
Cash,
restricted cash, and cash equivalents at the beginning of the
period |
|
$ |
21,988 |
|
|
$ |
41,587 |
|
Cash,
restricted cash, and cash equivalents at the end of the period |
|
$ |
25,260 |
|
|
$ |
30,778 |
|
AUGMEDIX,
INC.Reconciliation of GAAP to Non-GAAP Financial
Measures(Unaudited, in thousands)
|
Three Months Ended |
|
June 30, |
|
(unaudited) |
Stock Based Compensation Expense |
|
2023 |
|
|
2022 |
|
Cost of revenue |
$ |
27 |
|
$ |
24 |
|
General and
administrative |
|
381 |
|
|
344 |
|
Sales and marketing |
|
64 |
|
|
42 |
|
Research and development |
|
93 |
|
|
81 |
|
Total stock-based
compensation expense |
$ |
565 |
|
$ |
491 |
|
|
|
|
Net loss |
$ |
(5,033 |
) |
$ |
(7,335 |
) |
Interest |
|
558 |
|
|
385 |
|
Tax |
|
51 |
|
|
2 |
|
Depreciation |
|
262 |
|
|
215 |
|
EBITDA |
$ |
(4,162 |
) |
$ |
(6,733 |
) |
Add: Stock-based
compensation |
|
565 |
|
|
491 |
|
Add: Loss on
extinguishment |
|
- |
|
|
1,097 |
|
Adjusted
EBITDA |
$ |
(3,597 |
) |
$ |
(5,145 |
) |
|
|
|
GAAP Cost of
revenue |
$ |
5,715 |
|
$ |
4,131 |
|
Less: Stock-based
compensation |
|
(27 |
) |
|
(24 |
) |
Non-GAAP cost of
revenue |
$ |
5,688 |
|
$ |
4,107 |
|
|
|
|
Non-GAAP Gross Profit |
$ |
5,092 |
|
$ |
3,226 |
|
Non-GAAP Gross Margin |
|
47.2 |
% |
|
44.0 |
% |
|
|
|
GAAP Operating
expenses |
$ |
9,999 |
|
$ |
9,141 |
|
Less: Stock-based
compensation |
|
(538 |
) |
|
(467 |
) |
Non-GAAP operating
expenses |
$ |
9,461 |
|
$ |
8,674 |
|
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