Augmedix (Nasdaq: AUGX), a leader in ambient AI medical
documentation and data solutions, today reported financial results
for the three months ended March 31, 2024.
“Augmedix delivered in-line first quarter
performance, with 40% revenue growth, 143% net revenue retention
and 47.1% gross margins,” commented Manny Krakaris, Augmedix CEO.
“We are confident about our positioning within the medical
documentation market, and expect to report continued growth
throughout the rest of the year. It is now clear, however, that
health systems are proceeding methodically while they develop a
better understanding of the capabilities of AI products.”
“We are seeing an increasing amount of interest
with new and existing customers that are evaluating our AI
products, Augmedix Go and Augmedix Go Assist, including active
discussions for large deployments. In particular, the recently
introduced ER version is resonating with health systems as it is
the first fully-automated, generative AI powered medical
documentation product for acute care. Augmedix Go Assist is
quickly becoming a compelling solution given its attractive mix of
price and efficiency. Meanwhile, following a successful pilot, our
strategic partner HCA Healthcare is planning to expand Augmedix Go
to additional emergency departments within its health system."
“At the same time, we have observed a slow-down
in purchasing commitments by some providers as they evaluate the
many AI offerings currently available. Based on current
expectations, we now believe it is prudent to adjust our full year
revenue outlook to reflect these developments that have arisen
since the last earnings call,” continued Krakaris. “We are
continuing to sell cohorts of new Live users, although not at the
level that we had previously expected, while providers evaluate
various AI offerings, including our own. A couple of our health
systems have chosen to transition some of their Augmedix Live users
to Augmedix Go Assist, reducing the near-term revenue expectations
at these accounts. While the transition from our established Live
product to our AI-based solutions, Augmedix Go and Augmedix Go
Assist, may result in slower short-term revenue growth given the
lower APRU of our AI products, we welcome this transition as it
exposes us to a much larger segment of the market. We expect this
will ultimately result in robust revenue growth going forward that
is generated from products with inherently higher gross margins
than our established Live product.”
Concluded Krakaris, “Our strategic positioning
has always been to meet customers where they are today and where
they want to be in the future. For this reason, we offer health
systems the most comprehensive portfolio of products in the
industry, giving unrivaled flexibility and value to users, that
allow customers to select the optimal solution based on the
clinician and the encounter. The market is trying to balance the
need for medical note accuracy and completeness against
cost-effective optimization. We believe offering solutions that
span this spectrum is the winning approach at this juncture of AI’s
evolution. This is being validated, in fact, by the strong early
interest in our AI-based products. Augmedix is ideally positioned,
with the right blend of solutions, strong AI capabilities, and a
pipeline of forward-thinking healthcare systems and clinicians who
are helping us optimize our suite of solutions.”
|
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|
|
Three Months EndedMarch 31, |
|
|
Financial Highlights: |
|
2024 |
|
2023 |
|
Change |
Revenues |
|
$13,471 |
|
|
$9,628 |
|
|
40% |
Gross profit |
|
$6,341 |
|
|
$4,386 |
|
|
45% |
Gross margin |
|
|
47.1% |
|
|
|
45.6% |
|
|
150 bps |
Net loss |
|
$(6,499) |
|
|
$(5,239) |
|
|
(24)% |
Loss per share |
|
$(0.12) |
|
|
$(0.14) |
|
|
14% |
Adjusted EBITDA
(non-GAAP) |
|
$(5,078) |
|
|
$(4,282) |
|
|
(19)% |
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2024 Financial
Highlights
All comparisons, unless otherwise noted, are to
the three months ended March 31, 2023.
- Total revenue was $13.5 million, an
increase of 40% compared to $9.6 million.
- Dollar-based Net Revenue Retention
was 143% for our Health Enterprise customers compared to 136%.
- Gross Profit increased 45% to $6.3
million from $4.4 million.
- Gross Margin increased 150 basis
points to 47.1% compared to 45.6%.
- Operating Expenses were $12.7
million compared to $9.5 million. Adjusted operating expenses, a
Non-GAAP metric, increased 32% to $11.9 million compared to $9.0
million.
- Net loss was $6.5 million compared
to $5.2 million.
- Adjusted EBITDA loss, a Non-GAAP
metric, was $5.1 million compared to $4.3 million.
- Operating cash burn was $8.2
million compared to $6.2 million.
- Cash and cash equivalents, as of
March 31, 2024, was $37.3 million compared to $19.9 million as
of March 31, 2023.
- Common shares and pre-funded
warrants outstanding as of March 31, 2024 were 53,146,326. The
pre-funded warrants are included in the weighted average shares
outstanding for the EPS calculation. Net exercising 100% of the
remaining warrants and 100% of the fully-vested and in-the-money
employee equity awards at a price of $2.22 per share would add
another approximately 2.3 million common shares.
Adjusted operating expenses and Adjusted EBITDA
are Non-GAAP financial measures. See “Non-GAAP Financial Measures.”
Please see “Non-GAAP Financial Measures” below and the
Reconciliation of GAAP to Non-GAAP Metrics table below.
2024 Revenue Guidance
Based on our current outlook, Augmedix expects
to generate revenue of approximately $52 to $55 million in
2024.
Conference Call
Augmedix will host a conference call at 4:30
p.m. ET / 1:30 p.m. PT today, Monday, May 13, 2024, to discuss its
first quarter 2024 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 # 13746028. Interested parties may access a live and
archived webcast on the “Investor Relations” section of the
Company’s website at: ir.augmedix.com.
Definition of Key Metrics
Average Clinicians in Service:
We define a clinician in service as an individual doctor, nurse
practitioner or other healthcare professional using our products.
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 average number of
clinicians in service is a key indicator of the performance of our
business as it demonstrates our ability to penetrate the market and
grow our business. At this time clinicians in service does not
include clinicians using Augmedix Go.
Average Annual Revenue Per
Clinician: Average revenue per clinician is determined as
total revenue, excluding Data Services revenue, recognized during
the period presented divided by the average number of clinicians in
service during that same period. Using the number of clinicians in
service at the end of each month, we derive an average number of
clinicians in service for the periods presented. The average annual
revenue per clinician will vary based upon minimum hours of service
requested by clinicians, pricing, and our product mix.
Dollar-Based Net Revenue
Retention: 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. 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. 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.
About Augmedix
Augmedix (Nasdaq: AUGX) empowers clinicians to
connect with patients by liberating them from administrative burden
through the power of ambient AI, data, and trust.
The platform transforms natural conversations into organized
medical notes, structured data, and point-of-care notifications
that enhance efficiency and clinical decision support.
Incorporating data from millions of interactions across all care
settings, Augmedix collaborates with hospitals and health systems
to improve clinical, operational, and financial outcomes.
Augmedix is headquartered in San Francisco, CA, with offices
around the world. To learn more, visit www.augmedix.com.
Non-GAAP Financial Measures
To supplement our consolidated financial
statements, which are prepared and presented in accordance with
GAAP, we use the following non-GAAP financial measures: adjusted
operating expenses, 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 define Adjusted Operating Expense as total
operating expenses less share-based compensation expense.
In the fourth quarter of 2023, Augmedix changed
its computation of Adjusted EBITDA to better reflect the
performance of the Company’s business predominantly due to the
equity financing that occurred in November of 2023, which
significantly increased the Company’s cash balance. We now define
Adjusted EBITDA as net income (loss) adjusted to exclude
depreciation and amortization; share-based compensation expense;
income tax expense (benefit); and other income (expense) net, which
consists of interest expense on our debt facility, interest income
from our cash and cash equivalents, realized foreign currency gains
and losses, loss on extinguishment of debt, change in fair value of
a warrant liability, and grant income from the Bangladesh
government related to our Bangladesh subsidiary. Prior to the
fourth quarter of 2023, the Company did not exclude interest income
earned on cash balances, realized foreign currency transaction
gains or losses or grant income received from the Bangladesh
government from the computation of Adjusted EBITDA. Adjusted EBITDA
has been recast in prior periods to reflect this change for
consistency in presentation.
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
reviewing 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 Metrics
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," and variations of such words and
similar expressions are intended to identify forward-looking
statements. Such forward-looking statements include, without
limitation, statements regarding full-year revenue guidance for
2024; our confidence about our positioning within the medical
documentation market, and our expectation to report continued
growth throughout the rest of the year; Go Assist quickly becoming
a compelling solution; HCA Healthcare’s plans to expand Augmedix Go
to additional emergency departments within its health system; our
observation of a slow-down in purchasing commitments by some
providers; the transition by customers from our Live product to our
AI-based solutions exposing us to a much larger segment of the
market that will ultimately result in robust revenue growth going
forward that is generated from products with inherently higher
gross margins than our Live product; our offering to health systems
the most comprehensive portfolio of products in the industry,
giving unrivaled flexibility and value to users; the market trying
to balance the need for medical note accuracy and completeness
against cost-effective optimization and our belief that our
offering solutions that span this spectrum are the winning approach
at this juncture of AI’s evolution; the strong early interest in
our AI-based products; and Augmedix being ideally positioned, with
the right blend of solutions, strong AI capabilities, and a
pipeline of forward-thinking healthcare systems and clinicians who
are helping us optimize our suite of solutions. 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, risks detailed in
our most recent Form 10-K filed with the Securities and Exchange
Commission on March 26, 2024 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; anticipated trends, growth rates, and
challenges in our business and in the markets in which we operate;
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, as well as our ability to
compete effectively in the market; 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.
Investors:Matt Chesler, CFAFNK
IRinvestors@augmedix.com
Media:Kaila GrafemanAugmedixpr@augmedix.com
|
AUGMEDIX, INC.Condensed Consolidated
Statements of Operations(Unaudited, in thousands,
except shares and key metrics) |
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
2024 |
|
2023 |
Revenues |
|
$ |
13,471 |
|
|
$ |
9,628 |
|
Cost of revenues |
|
|
7,130 |
|
|
|
5,242 |
|
Gross profit |
|
|
6,341 |
|
|
|
4,386 |
|
Operating expenses: |
|
|
|
|
General and administrative |
|
|
5,347 |
|
|
|
4,207 |
|
Sales and marketing |
|
|
3,563 |
|
|
|
2,563 |
|
Research and development |
|
|
3,833 |
|
|
|
2,710 |
|
Total operating expenses |
|
|
12,743 |
|
|
|
9,480 |
|
Loss from operations |
|
|
(6,402 |
) |
|
|
(5,094 |
) |
Other income (expenses): |
|
|
|
|
Interest expense |
|
|
(616 |
) |
|
|
(408 |
) |
Interest income |
|
|
503 |
|
|
|
162 |
|
Other |
|
|
(64 |
) |
|
|
134 |
|
Total other income (expenses), net |
|
|
(177 |
) |
|
|
(112 |
) |
Net loss before income taxes |
|
|
(6,579 |
) |
|
|
(5,206 |
) |
Income tax expense (benefit) |
|
|
(80 |
) |
|
|
33 |
|
Net loss |
|
$ |
(6,499 |
) |
|
$ |
(5,239 |
) |
|
|
|
|
|
Weighted average shares of
common stock outstanding, basic and diluted |
|
|
53,058,667 |
|
|
|
37,491,072 |
|
|
|
|
|
|
Key
Metrics: |
|
|
|
|
Average clinicians in
service |
|
|
1,862 |
|
|
|
1,371 |
|
Average annual revenue per
clinician |
|
$ |
28,700 |
|
|
$ |
27,800 |
|
Dollar-based net revenue
retention rate |
|
|
143 |
% |
|
|
136 |
% |
|
|
|
|
|
|
|
|
|
|
AUGMEDIX, INC.Condensed Consolidated
Balance Sheet(Unaudited, in
thousands) |
|
|
|
|
|
|
|
March 31,2024 |
|
December 31,2023 |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
37,301 |
|
|
$ |
46,217 |
|
Restricted cash |
|
|
125 |
|
|
|
125 |
|
Accounts receivable, net of allowance for credit losses of $174 and
$110 at March 31, 2024 and December 31, 2023,
respectively |
|
|
9,979 |
|
|
|
8,572 |
|
Prepaid expenses and other current assets |
|
|
2,568 |
|
|
|
1,909 |
|
Total current assets |
|
|
49,973 |
|
|
|
56,823 |
|
Property and equipment,
net |
|
|
3,597 |
|
|
|
3,739 |
|
Operating lease right of use
asset |
|
|
4,918 |
|
|
|
5,220 |
|
Restricted cash,
non-current |
|
|
209 |
|
|
|
— |
|
Deposits and other assets |
|
|
859 |
|
|
|
930 |
|
Total assets |
|
$ |
59,556 |
|
|
$ |
66,712 |
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,245 |
|
|
$ |
721 |
|
Accrued expenses and other
current liabilities |
|
|
4,429 |
|
|
|
6,589 |
|
Deferred revenue |
|
|
9,014 |
|
|
|
8,963 |
|
Customer deposits |
|
|
851 |
|
|
|
851 |
|
Operating lease liability,
current portion |
|
|
1,487 |
|
|
|
1,494 |
|
Loan payable, current
portion |
|
|
7,500 |
|
|
|
5,000 |
|
Total current liabilities |
|
|
24,526 |
|
|
|
23,618 |
|
Operating lease liability, net
of current portion |
|
|
3,751 |
|
|
|
4,049 |
|
Loan payable, net of current
portion |
|
|
12,952 |
|
|
|
15,303 |
|
Other liabilities |
|
|
548 |
|
|
|
421 |
|
Total liabilities |
|
|
41,777 |
|
|
|
43,391 |
|
Total stockholders'
equity |
|
|
17,779 |
|
|
|
23,321 |
|
Total liabilities and
stockholders' equity |
|
$ |
59,556 |
|
|
$ |
66,712 |
|
|
|
|
|
|
|
AUGMEDIX, INC.Condensed Consolidated
Statement of Cash Flows(Unaudited, in
thousands) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2024 |
|
2023 |
Net cash used in operating activities |
|
$ |
(8,236 |
) |
|
$ |
(6,221 |
) |
Net cash used in investing
activities |
|
|
(542 |
) |
|
|
(173 |
) |
Net cash provided by financing
activities |
|
|
59 |
|
|
|
5,085 |
|
Effect of exchange rate
changes on cash and restricted cash |
|
|
12 |
|
|
|
(40 |
) |
Net decrease in cash and
restricted cash |
|
|
(8,707 |
) |
|
|
(1,349 |
) |
Cash and restricted cash at
beginning of year |
|
|
46,342 |
|
|
|
21,988 |
|
Cash and restricted cash at
end of year |
|
$ |
37,635 |
|
|
$ |
20,639 |
|
|
|
|
|
|
|
|
|
|
|
AUGMEDIX, INC.Reconciliation of GAAP to
Non-GAAP Metrics(Unaudited, in
thousands) |
|
|
|
|
|
Three Months EndedMarch 31, |
Adjusted
EBITDA: |
|
2024 |
|
2023 |
Net loss |
|
$ |
(6,499 |
) |
|
$ |
(5,239 |
) |
|
|
|
|
|
Add: Other income (expense) ,
net |
|
|
(177 |
) |
|
|
(112 |
) |
Add: Depreciation |
|
|
439 |
|
|
|
279 |
|
Add: Share-based
compensation |
|
|
885 |
|
|
|
533 |
|
Add: Income tax expense
(benefit) |
|
|
(80 |
) |
|
|
33 |
|
Total adjustments |
|
|
1,421 |
|
|
|
957 |
|
Adjusted EBITDA |
|
$ |
(5,078 |
) |
|
$ |
(4,282 |
) |
|
|
|
|
|
Adjusted Operating
Expenses: |
|
|
|
|
Total operating expenses |
|
$ |
12,743 |
|
|
$ |
9,480 |
|
Less: Share-based
compensation |
|
|
844 |
|
|
|
507 |
|
Adjusted operating
expenses |
|
$ |
11,899 |
|
|
$ |
8,973 |
|
|
|
|
|
|
|
|
|
|
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