Exagen Inc. (Nasdaq: XGN), a leading provider of autoimmune testing
solutions, today reported financial results for the quarter ended
June 30, 2024.
Highlights:
- Recognized record total revenue of
$15.1 million in the second quarter of 2024.
- Delivered gross margin of 60.1% in the second quarter of 2024,
compared to a gross margin of 58.7% in the second quarter of
2023.
- AVISE® CTD trailing twelve-month average selling price (ASP) of
$401, a 25.3% increase over the trailing twelve-month ASP in the
second quarter of 2023.
- Net loss of $3.0 million in the second quarter of 2024, a 40.8%
improvement over the second quarter of 2023.
- Adjusted EBITDA loss of $1.6 million for the second quarter of
2024, a 53.5% improvement over the second quarter of 2023.
- Cash and cash equivalents were $24.5 million as of June 30,
2024.
"It is exciting to report on another successful quarter as we
work to accomplish our goals. We’ve had a very strong start to the
year, outpacing our internal expectations, and we are in the middle
of transforming the company through product enhancements and
continued improvement in our operations. This momentum is a
testament to our team's hard work and dedication to our strategic
initiatives to bring us to profitability. As we head into the
second half of the year, we are confident in our ability to
continue delivering outstanding results and driving sustained
growth. We are again raising our revenue guidance and adjusted
EBITDA expectations for the full year 2024 as a result of the
progress we are making,” said John Aballi, President and Chief
Executive Officer.
Second Quarter
2024 Financial Results
Revenue was $15.1 million in the second quarter of 2024,
compared to $14.1 million in the second quarter of 2023, primarily
due to improved ASP. Gross margin was 60.1% in the second quarter
of 2024, compared to 58.7% in the second quarter of 2023. The
increase in gross margin percentage was driven by an increase in
ASP.
Operating expenses were $17.7 million in the second quarter of
2024, compared with $19.1 million in the second quarter of 2023.
The decrease in operating expenses was a result of lower legal
expenses and lower stock based compensation as a result of
decreases in headcount.
Net loss was $3.0 million for the second quarter of 2024,
compared to a net loss of $5.0 million in the second quarter of
2023.
Adjusted EBITDA loss was $1.6 million for the second quarter of
2024, compared to a $3.4 million loss for the second quarter of
2023. Adjusted EBITDA loss through the first two quarters of 2024
was $3.6 million compared to a $9.6 million loss through the first
two quarters of 2023.
Cash and cash equivalents were $24.5 million as of June 30,
2024 and our accounts receivable balance was $11.7 million.
A reconciliation of non-GAAP adjusted EBITDA to GAAP net loss,
the closest GAAP financial measure, is provided in the financial
schedules that are part of this press release. An explanation of
this non-GAAP financial measures is also included below under the
heading “Use of Non-GAAP Financial Measures (unaudited).”
2024 Guidance
Given our continued improved performance, we are increasing our
guidance for full-year 2024 revenue to at least $57 million and now
believe our adjusted EBITDA loss will be better than $12
million.
Conference Call
A conference call to review second quarter 2024 financial
results and to provide a business update is scheduled for today,
August 5, 2024, at 8:30 AM Eastern Time (5:30 AM Pacific
Time). Interested parties may access the conference call by dialing
(201) 389-0918 (U.S.) or (877) 407-0890 (international).
Additionally, a link to a live webcast of the call will be
available in the Investor Relations section of Exagen's website at
investors.exagen.com.
Participants are asked to join a few minutes prior to the call
to register for the event. A replay of the conference call will be
available until Monday, August 19, 2024, at 11:59 PM Eastern Time
(8:59 PM Pacific Time). Interested parties may access the replay by
dialing (201) 612-7415 (U.S.) or (877) 660-6853 (international)
using passcode 13747595. A link to the replay of the webcast will
also be available in the Investor Relations section of Exagen's
website.
Use of Non-GAAP Financial Measures
(UNAUDITED)
In this release, we use the metrics of adjusted EBITDA, which is
not calculated in accordance with generally accepted accounting
principles in the United States (GAAP) and is a non-GAAP financial
measure. Adjusted EBITDA excludes from net loss interest income
(expense), depreciation and amortization expense, and stock-based
compensation expense.
We use adjusted EBITDA internally because we believe these
metrics provide useful supplemental information in assessing our
operating performance reported in accordance with GAAP. We believe
adjusted EBITDA may enhance an evaluation of our operating
performance because it excludes the impact of prior decisions made
about capital investment, financing, investing and certain expenses
we believe are not indicative of our ongoing performance. However,
this non-GAAP financial measure may be different from non-GAAP
financial measures used by other companies, even when the same or
similarly titled terms are used to identify such measures, limiting
their usefulness for comparative purposes.
This non-GAAP financial measure is not meant to be considered in
isolation or used as a substitute for net loss reported in
accordance with GAAP, should be considered in conjunction with our
financial information presented in accordance with GAAP, has no
standardized meaning prescribed by GAAP, is unaudited, and is not
prepared under any comprehensive set of accounting rules or
principles. In addition, from time to time in the future, there may
be other items that we may exclude for purposes of these non-GAAP
financial measures, and we may in the future cease to exclude items
that we have historically excluded for purposes of these non-GAAP
financial measures. Likewise, we may determine to modify the nature
of adjustments to arrive at these non-GAAP financial measures.
Because of the non-standardized definitions of non-GAAP financial
measures, the non-GAAP financial measure as used by us in this
press release and the accompanying reconciliation table have limits
in their usefulness to investors and may be calculated differently
from, and therefore may not be directly comparable to, similarly
titled measures used by other companies. Accordingly, investors
should not place undue reliance on non-GAAP financial measures.
About Exagen
Exagen is a leading provider of autoimmune testing and its
purpose as an organization is to provide clarity in autoimmune
disease decision making with the goal of improving patients’
clinical outcomes. Exagen is located in San Diego County,
California.
For more information, please visit Exagen.com or follow
@ExagenInc on X (formally known as Twitter).
Forward Looking Statements
Exagen cautions you that statements contained in this press
release regarding matters that are not historical facts are
forward-looking statements. These statements are based on Exagen’s
current beliefs and expectations. Such forward-looking statements
include, but are not limited to, statements regarding: Exagen’s
goals, strategies and ambitions; potential future financial and
business performance; the potential utility and effectiveness of
Exagen’s services and testing solutions; updates to be made to
AVISE® CTD; potential shareholder value and growth and 2024
guidance. The inclusion of forward-looking statements should not be
regarded as a representation by Exagen that any of its plans will
be achieved. Actual results may differ from those set forth in this
press release due to the risks and uncertainties inherent in
Exagen’s business, including, without limitation: delays in
reimbursement and coverage decisions from Medicare and third-party
payors and in interactions with regulatory authorities, and delays
in ongoing and planned clinical trials involving its tests; changes
in laws and regulations related to Exagen’s regulatory
requirements; Exagen’s commercial success depends upon attaining
and maintaining significant market acceptance of its testing
products among rheumatologists, patients, third-party payors and
others in the medical community; Exagen’s ability to successfully
execute on its business strategies; third-party payors not
providing coverage and adequate reimbursement for Exagen’s testing
products, including Exagen’s ability to collect on funds due;
Exagen’s ability to obtain and maintain intellectual property
protection for its testing products; regulatory developments
affecting Exagen’s business; and other risks described in Exagen’s
prior press releases and Exagen’s filings with the Securities and
Exchange Commission (“SEC”), including under the heading “Risk
Factors” in Exagen’s Annual Report on Form 10-K for the year ended
December 31, 2023, filed with the SEC on March 18, 2024, its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2024,
filed with the SEC on August 5, 2024 and any subsequent filings
with the SEC. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof, and Exagen undertakes no obligation to update such
statements to reflect events that occur or circumstances that exist
after the date hereof. All forward-looking statements are qualified
in their entirety by this cautionary statement, which is made under
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
Contact:Ryan DouglasExagen Inc.ir@exagen.com
760.560.1525
Exagen Inc.Unaudited Condensed Statements
of Operations(in thousands, except share and per
share data) |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
Revenue |
|
$ |
15,064 |
|
|
$ |
14,137 |
|
|
$ |
29,479 |
|
|
$ |
25,367 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
|
|
6,008 |
|
|
|
5,836 |
|
|
|
11,825 |
|
|
|
11,762 |
|
Selling, general and administrative expenses |
|
|
10,464 |
|
|
|
11,953 |
|
|
|
21,006 |
|
|
|
23,837 |
|
Research and development expenses |
|
|
1,179 |
|
|
|
1,263 |
|
|
|
2,238 |
|
|
|
2,389 |
|
Total operating expenses |
|
|
17,651 |
|
|
|
19,052 |
|
|
|
35,069 |
|
|
|
37,988 |
|
Loss
from operations |
|
|
(2,587 |
) |
|
|
(4,915 |
) |
|
|
(5,590 |
) |
|
|
(12,621 |
) |
Interest
expense |
|
|
(560 |
) |
|
|
(574 |
) |
|
|
(1,109 |
) |
|
|
(1,212 |
) |
Interest
income |
|
|
181 |
|
|
|
476 |
|
|
|
373 |
|
|
|
1,132 |
|
Net
loss |
|
$ |
(2,966 |
) |
|
$ |
(5,013 |
) |
|
$ |
(6,326 |
) |
|
$ |
(12,701 |
) |
Net loss
per share, basic and diluted |
|
$ |
(0.16 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.72 |
) |
Weighted-average number of shares used to compute net loss per
share, basic and diluted |
|
|
18,178,185 |
|
|
|
17,655,483 |
|
|
|
18,061,312 |
|
|
|
17,591,478 |
|
Exagen Inc.Unaudited Condensed Balance
Sheets(in thousands, except share and per share
data) |
|
|
|
June 30, 2024 |
|
December 31, 2023 |
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
24,479 |
|
|
$ |
36,493 |
|
Accounts receivable, net |
|
|
11,703 |
|
|
|
6,551 |
|
Prepaid expenses and other current assets |
|
|
4,612 |
|
|
|
4,797 |
|
Total current assets |
|
|
40,794 |
|
|
|
47,841 |
|
Property and equipment,
net |
|
|
5,147 |
|
|
|
5,201 |
|
Operating lease right-of-use
assets |
|
|
2,853 |
|
|
|
3,286 |
|
Other assets |
|
|
513 |
|
|
|
616 |
|
Total assets |
|
$ |
49,307 |
|
|
$ |
56,944 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
2,330 |
|
|
$ |
3,131 |
|
Accrued and other current liabilities |
|
|
5,658 |
|
|
|
7,531 |
|
Operating lease liabilities |
|
|
1,035 |
|
|
|
976 |
|
Borrowings-current portion |
|
|
423 |
|
|
|
264 |
|
Total current liabilities |
|
|
9,446 |
|
|
|
11,902 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
|
|
19,830 |
|
|
|
19,231 |
|
Non-current operating lease
liabilities |
|
|
2,227 |
|
|
|
2,760 |
|
Other non-current
liabilities |
|
|
219 |
|
|
|
357 |
|
Total liabilities |
|
|
31,722 |
|
|
|
34,250 |
|
Commitments and contingencies
(Note 5) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no
shares issued or outstanding as of June 30, 2024 and December
31, 2023 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized as of
June 30, 2024 and December 31, 2023; 17,381,575 and 17,045,954
shares issued and outstanding as of June 30, 2024 and December
31, 2023, respectively |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
303,110 |
|
|
|
301,893 |
|
Accumulated deficit |
|
|
(285,542 |
) |
|
|
(279,216 |
) |
Total stockholders' equity |
|
|
17,585 |
|
|
|
22,694 |
|
Total liabilities and
stockholders' equity |
|
$ |
49,307 |
|
|
$ |
56,944 |
|
Exagen Inc.Reconciliation of Non-GAAP
Financial Measures (UNAUDITED) |
|
The table below presents the reconciliation of adjusted EBITDA,
which is a non-GAAP financial measure. See "Use of Non-GAAP
Financial Measures (UNAUDITED)" above for further information
regarding the Company's use of non-GAAP financial measures. |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
(in thousands) |
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(2,966 |
) |
|
$ |
(5,013 |
) |
|
$ |
(6,326 |
) |
|
$ |
(12,701 |
) |
Other (Income) Expense |
|
|
(181 |
) |
|
|
(476 |
) |
|
|
(373 |
) |
|
|
(1,132 |
) |
Interest Expense |
|
|
560 |
|
|
|
574 |
|
|
|
1,109 |
|
|
|
1,212 |
|
Income tax expense (benefit) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization expense |
|
|
429 |
|
|
|
503 |
|
|
|
887 |
|
|
|
1,056 |
|
Stock-based compensation expense |
|
|
560 |
|
|
|
979 |
|
|
|
1,113 |
|
|
|
1,963 |
|
Adjusted
EBITDA (Non-GAAP) |
|
$ |
(1,598 |
) |
|
$ |
(3,433 |
) |
|
$ |
(3,590 |
) |
|
$ |
(9,602 |
) |
Exagen (NASDAQ:XGN)
Historical Stock Chart
From Jul 2024 to Aug 2024
Exagen (NASDAQ:XGN)
Historical Stock Chart
From Aug 2023 to Aug 2024