AUGX Augmedix Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): November 15, 2023

 

 

AUGMEDIX, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware		001-40890		83-3299164
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

111 Sutter Street, Suite 1300, San Francisco, California 94104

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (888) 669-4885

 

N/A

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value per share		AUGX		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 8.01. Other Events.

 

On November 15, 2023, Augmedix, Inc., a Delaware corporation, posted an updated investor presentation on its website at www.augmedix.com. A copy of the presentation is filed herewith as Exhibit 99.1 and is incorporated by reference herein.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.		Description
99.1		Investor Presentation of Augmedix, Inc. dated November 15, 2023.
104		Cover Page Interactive Data File--the cover page XBRL tags are embedded within the Inline XBRL document.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	AUGMEDIX, INC.
Dated: November 15, 2023	By:	/s/ Paul Ginocchio
		Paul Ginocchio
		Chief Financial Officer

 

 

2

Exhibit 99.1

 

Investor P r e s e n t a t i o n November 2023 Nasdaq: AUGX

This presentation includes forward - looking statements. All statements other than statements of historical facts contained in these materials or elsewhere, including statements regarding the Company’s future financial position, business strategy and plans and objectives of management for future operations, are forward - looking statements. Forward - looking statements use words like “believe,” “plan,” “expect,” “intend,” “will,” “would,” “anticipate,” “estimate,” and similar words or expressions in discussions of the Company’s future operations, financial performance or strategies. These statements are based on current expectations or objectives that are inherently uncertain. In light of these uncertainties, and the assumptions underlying the expectations and other forward - looking statements expressed, the forward - looking events and circumstances discussed in the accompanying materials may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward - looking statements. The Company’s 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 the Company’s most recent Annual Report on Form 10 - K and Quarterly Report on Form 10 - Q filed with the Securities and Exchange Commission (“SEC”), 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: the Company’s expectations regarding changes in regulatory requirements; the Company’s ability to interoperate with the electronic health record systems of its customers; the Company’s reliance on vendors; the Company’s ability to attract and retain key personnel; the competition to attract and retain remote documentation specialists; anticipated trends, growth rates, and challenges in the Company’s business and in the markets in which the Company operates; the Company’s ability to further penetrate its existing customer base; the Company’s ability to protect and enforce its intellectual property protection and the scope and duration of such protection; developments and projections relating to the Company’s competitors and the Company’s 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 presentation represent the Company’s views as of the date of this presentation. Subsequent events and developments may cause the Company’s views to change. The Company undertakes no 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 the Company’s views as of any date subsequent to the date of this presentation. This presentation includes information related to market opportunity as well as cost and other estimates obtained from internal analyses and external sources. The internal analyses are based upon management’s understanding of market and industry conditions and have not been verified by independent sources. Similarly, the externally sourced information has been obtained from sources the Company believes to be reliable, but the accuracy and completeness of such information cannot be assured. Neither the company, nor any of its respective officers, directors, managers, employees, agents, or representatives, undertake to update any of such information or provide additional information as a result of new information or future events or developments. D i s c l a i m e r 2

Today’s Presenters Manny Krakaris Chief Executive Officer 25+ Years of Experience P a u l G i n o cc h i o Chief Financial Officer 25+ Years of Experience Command Audio Corporation 3

Clear pathway to growth with significant white space across new and existing customer base Demonstrated customer ROI and attractive unit economics Scalable synchronous and asynchronous medical documentation for clinicians across multiple sites of care Sticky customer base across several of the largest US health systems and differentiated partnership with HCA Compelling financial profile with strong growth and improving margins Highly differentiated and defensible market positioning ~ 5 0% YoY $48M 9/30/23 ARR 157% Q 3 202 3 Y o Y N e t Revenue Retention 20+ Health Systems Served >60,000 Notes Per Week Augmedix at a Glance Q3 2022 Q3 2023 $11 . 8 Revenue ($ i n m illi o n s ) $7 . 9 4

I. Com p any Overvi e w

The Healthcare Dilemma Clinician burnout and chronic staffing shortages are creating a significant gap between the demand for patient care and health systems’ capacity to provide care. Today’s patient encounter documentation practices and technologies consume up to one - third of a clinician’s workday and have become an intrusion between clinician and patient. 6

Augmedix reduces administrative burden by providing Ambient - based medical documentation, giving clinicians more time to focus on what matters most: high - quality patient care. 7

Augmedix Mission & Vision Our mission is to help healthcare providers shrink care gaps and redirect more of their time towards patient care and away from medical documentation. Our vision is to deliver rapid, actionable insights at the point of care that can improve patient outcomes and serve as the vehicle of choice for change management .

Augmedix Benefits Save clinicians up to 3 hours per day Increase clinician productivity by up to 20% Easily - deployed products for health systems to adopt at scale 9

1 5 1 5 15 Competitive Differentiation • Broadest Product Portfolio • Transparency • Structured Data • Product Fungibility • Wide range of Care Settings & Specialties • Bi - Directional Communication Channel • Established & Sticky Customer Relationships with Major Healthcare Enterprises 10

Ian Shakil Co - Founder & Chief Strategy Officer Saurav Chatterjee Chief Technology Officer Highly Experienced Management Team Rashe d N o m a n Country Manager, Bangladesh Davin Lundquist Chief Medical Officer Sandra Breber Chief Operating Officer Jonathan Hawkins Chief Revenue Officer 11 Paul Ginocchio Chief Financial Officer Manny Krakaris Chief Executive Officer Co mm a n d A u d io Corporation Rod O’Reilly Non - Executive Chairman

II. Product Portfolio

Augmedix captures the natural clinician - patient conversation at the point of care. Augmedix converts the conversation into a comprehensive medical note which is uploaded to the EHR . Clinician reviews and signs off. How It Works 13

Ambient Conversation Clinician - Patient Transparent Note Creation Notebuilder Canvas Automatic Speech Recognition (ASR) Clinician : Nice to meet you . What brings you i n t o d ay ? Patient: I got a head a c he yes t er da y a n d it just w o n’t go away. Clinician: Any fever or chills? Patient: No, just the h e ad a ch e an d a s o r e thr o a t . I’ m t a king Tylenol but it’s not helping. C l ini c ia n : Le t ’ s s t a r t you on ibuprofen, 80 0 m g, as needed . headache fever c h ill s Natural Language P r o c e ss i n g (NLP) a nd Large Language Models (LLMs) Clinician : Nice to meet you . What brings you in today? Patient : I got a y es ter d a y a nd it just won’t go away. Physician : Any or ? Patient: No, just the headache and a sore throat. I’m taking Tylenol but it’s not helping. C li n i c i a n : Le t’s s t a r t you on Ibuprofen, 800 mg, as needed. Medical Note Electronic Health Record HPI The patient is a 55 - year - old f ema le pr esen t ing t o da y w i t h a headache. Headache Patient reports onset 1 day ago, occurring constantly. She c o m pla ins o f a ss o c ia t ed s o r e throat but denies fever or chills. Sh e is t a k ing T y l e n ol w i t h o u t relief. A/P H e a d a c h e New, acute . Uncontrolled . I advised the patient to start ibupr o f en 800 mg P R N . Coding HPI ROS PE A/P PROBLEMS Headache 1 TIMING ONSET Timing constantly frequently i n termitte n tl y 1 hours days wee k s RELIEF CURRENT M E D ICATIO NS * Medications with relief with some relief without relief A dv i l Tylenol ibuprofen 14

Ambient AI Medical Documentation Products A syn c hro n o u s Quality - assured medical note TA T - 4 h rs AI - powered + Augmedix quality control $$ Aug med ix Note s Synchronous Quality - assured medical note + point - of - care support (orders, reminders, referrals) TA T - 30 min AI - powered + Augmedix MDS $$$ Aug med ix Li ve 1 5 T A T = Tu r na r ound Ti m e Instantaneous Draft medical note TA T - Re a l T i me AI - powered $ Augmedix Go Now available under early access Chart Prep Prior to start of day RPA AI - powered $ Aug med ix Prep

Documentation Market Landscape P r i c e Low Clinician Burden High Clinician Burden Dictation/Transcription 16 Dragon Fluency Direct SA DAX Dax C o P il o t Augmedix Go Augmedix Notes Augmedix Live Ambient Products Remote In - Person Remote / Real Time Draft Note / Pure AI Complete Note / Human in the Loop Asynchronous Documentation Synchronous Documentation

III. Add r es s able Market

Clients Served Augmedix provides industry - leading medical documentation to enterprise health systems and hospitals across the U . S . , including : • Academic Medical Centers • Ambulatory Surgery Centers • Children’s Hospitals • Emergency D e pa r t m ents • Federally Qualified Health Centers • Hospitals • Skilled Nursing Facilities • Surgical and Clinical Care • Telemedicine • Urgent Care • Veterinary Clinics

$6 Billion Market Opportunity for Augmedix ~295,000 ¹ Addressable Clinicians in U.S. $6B U . S . M a r k e t O pp o rt un i t y >57,000 ¹ Addressable Clinicians $1.2B+ 2 Expansion Opportunity within Existing Customers United States I nd i a Bangladesh S r i Lan k a O pp o r t un i t y (1) Company estimates out of a total of more than 1.1m U.S. clinicians. (2) Existing Health Enterprise customers have approximately 250,000 doctors employed or affiliated. Augmedix's Live & Notes offering addresses at least 23% of those employed or affiliated doctors. Select Current Customers Major Health Systems S c a l e T o d a y 4 C o un t r i e s >60K Notes / Week 19

• April 20, 2023: HCA partnership announced • Goal to accelerate development of technology to transform the way patient care is documented in hospitals and clinical settings • HCA piloting Augmedix technology in four hospitals with plans to expand deployment across its entire hospital base • HCA also invested in Augmedix to fund growth (1) Source: HCA Investor Day Presentation (11/09/2023) HCA Investor Day 2023: The Future of Generative AI at HCA Healthcare Powerful Partnership with HCA Shift Hand - Off Management Orchestration Patient Discharge Education and Understanding “ Augmedix Proof of Concept : Testing speech - enabled documentation technology as part of overall strategy” 1 Translation Services 20

Clear Pathway to Growth with Significant White Space in New and Existing Customers Expand our relationships with current large physician group and health system customers Promote enterprise - wide sales with platform offering Sell product portfolio to new health systems and large physician groups Target sales to small practices and independent physicians Leverage channel partnerships to accelerate revenue growth 21

IV. Proven Results

1 4 Demonstrated & Strong >3x ROI Augmedix can drive clinician productivity through better charge capture and/or improved patient access. Results from: Health System 100 Physicians With Augmedix Augmedix In - Service since 2016 15 Specialties 3.0 wRVUs/visit Add’l $840 rev/day v s . $90 - $15 0 a v g. c o s t / d a y * Before Augmedix 20% increase in revenue capture per visit 2.5 wRVUs/visit *Avg results = $840 incremental rev/day less $120 cost = $720/day/clinician Assuming 3 days of work per week $720 x 3 = $2,150 week, ~$9,000 month, ~$110,000 yr 23

Strong Growth and Improving Margin Profile 1. LTM to 9/30/2023. The Lifetime Value (LTV) of Augmedix Live is calculated by Revenue per Clinician / (Annual Churn Percentage) x expected contribution margin. Customer Acquisition Cost (CAC) is the sales and marketing spend in the previous quarter divided by number of new clinicians sold in the most recent quarter plus the onboarding costs in the most recent quarter divided by the number of go lives in the most recent quarter. 2. LTM to 9/30/2023. Payback period in months is calculated by CAC divided by the expected contribution profit in the first - year x 12. 24 Improving Gross Margin & Profit ($ in millions) Accelerating Revenue Growth ($ in millions) L T V / C A C : 1 5x P a y b a c k Period: 2 ~13 months 45.0% 44.7% 44.6% 43.7% 45.7% 46.3% 45.6% 47.0% 49.5% G r o s s M argin

1. Dollar - based NRR is derived from current period revenue including any expansion or new services and is net of contraction or churn compared to the previous period one year ago, but excludes revenue from new Health Enterprises for the current period. 2. 125% is world class per Gainsight (https://info.gainsight.com/rs/231 - EAT - 840/images/2021 - GS - NRReBook.pdf) 25 Rob u s t K PI P e r f o r m a n c e Y o Y G r o w t h i n Clinicia n s i n Service ( C I S ) 43% 41% 43% 48% 47% Q3 2 0 2 2 Q4 2 0 2 2 Q1 2 0 2 3 Q2 2 0 2 3 Q3 2 0 2 3 133% 131% 130% 126% 136% 148% Net Revenue Retention 1 157% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 125% 2

Investment Highlights Scalable synchronous and asynchronous medical documentation for clinicians across multiple sites of care Sticky customer base across several of the largest US health systems and unique partnership with HCA Highly differentiated and defensible market positioning Clear pathway to growth with significant white space across new and existing customer base Demonstrated customer ROI and attractive unit economics Compelling financial profile, recurring revenue model, with strong growth and improving margins 26

Thank You 27

v3.23.3

Cover	Nov. 15, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 15, 2023
Entity File Number	001-40890
Entity Registrant Name	AUGMEDIX, INC.
Entity Central Index Key	0001769804
Entity Tax Identification Number	83-3299164
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	111 Sutter Street
Entity Address, Address Line Two	Suite 1300
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94104
City Area Code	888
Local Phone Number	669-4885
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	AUGX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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