Exagen(XGN) - 2024 Q1 - Quarterly Results

Exagen Inc. First Quarter 2024 Financial Results First Quarter 2024 Highlights & CEO Commentary The company reported strong Q1 2024 results with significant revenue growth and improved margins, raising full-year guidance Q1 2024 Key Metrics vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $14.4 million | $11.2 million | +28.4% | | Gross Margin | 59.6% | 47.2% | +12.4 p.p. | | AVISE® CTD TTM ASP | $377 | - | +35.1% | | Net Loss | $(3.4) million | $(7.7) million | +56.3% Improvement | | Adjusted EBITDA | $(2.0) million | $(6.2) million | +67.7% Improvement | | Cash and Cash Equivalents | $27.3 million | - | - | - CEO John Aballi highlighted strong momentum carrying into the second quarter, driven by increased volume and improved ASP[3] - The company plans to enhance its flagship product, AVISE® CTD, which is expected to increase its value to clinicians and benefit financials[3] - The company's cash runway is expected to last into 2026[4] First Quarter 2024 Financial Performance Revenue grew 28.4% and net loss was substantially reduced, driven by higher ASP and lower operating expenses Q1 2024 vs Q1 2023 Financial Results | Financial Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $14.4 million | $11.2 million | | Gross Margin | 59.6% | 47.2% | | Operating Expenses | $17.4 million | $18.9 million | | Net Loss | $(3.4) million | $(7.7) million | | Adjusted EBITDA | $(2.0) million | $(6.2) million | - The increase in revenue and gross margin was primarily driven by an improvement in the Average Selling Price (ASP)[4][5] - Operating expenses decreased due to lower selling, general and administrative expenses related to a reduced headcount[5] - As of March 31, 2024, the company held $27.3 million in cash and cash equivalents and had an accounts receivable balance of $10.9 million[6] Full Year 2024 Guidance The company raised its full-year 2024 guidance for revenue and adjusted EBITDA following strong Q1 performance Updated Full Year 2024 Guidance | Metric | Updated Guidance | | :--- | :--- | | Revenue | At least $55 million | | Adjusted EBITDA | Better than $(18) million | - The company believes its existing cash and cash equivalents are adequate to meet anticipated cash requirements into 2026[7] Conference Call Information A conference call was held on May 13, 2024, to discuss Q1 results, with replay information available - A conference call to review Q1 2024 results was scheduled for May 13, 2024, at 8:30 AM Eastern Time[8] - A replay of the conference call is available until May 27, 2024, with access details provided in the report[9] Appendix: Financial Statements & Disclosures This section contains detailed unaudited financial statements, non-GAAP reconciliations, and forward-looking statement disclosures Unaudited Condensed Statements of Operations Statements of Operations (in thousands, except per share data) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2024 | 2023 | | Revenue | $14,415 | $11,230 | | Costs of revenue | $5,817 | $5,926 | | Selling, general and administrative expenses | $10,542 | $11,884 | | Research and development expenses | $1,059 | $1,126 | | Total operating expenses | $17,418 | $18,936 | | Loss from operations | $(3,003) | $(7,706) | | Net loss | $(3,360) | $(7,688) | | Net loss per share, basic and diluted | $(0.19) | $(0.44) | Unaudited Condensed Balance Sheets Condensed Balance Sheets (in thousands) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $27,267 | $36,493 | | Accounts receivable, net | $10,901 | $6,551 | | Total current assets | $42,400 | $47,841 | | Total assets | $50,808 | $56,944 | | Liabilities and Stockholders' Equity | | | | Total current liabilities | $8,783 | $11,902 | | Total liabilities | $30,817 | $34,250 | | Total stockholders' equity | $19,991 | $22,694 | | Total liabilities and stockholders' equity | $50,808 | $56,944 | Reconciliation of Non-GAAP Financial Measures Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2024 | 2023 | | Net loss | $(3,360) | $(7,688) | | Other (Income) Expense | $(192) | $(656) | | Interest Expense | $549 | $638 | | Depreciation and amortization expense | $458 | $553 | | Stock-based compensation expense | $553 | $984 | | Adjusted EBITDA (Non-GAAP) | $(1,992) | $(6,169) | Use of Non-GAAP Financial Measures and Forward-Looking Statements - The company uses adjusted EBITDA, a non-GAAP measure, which it defines as net loss excluding certain non-cash and other items[10] - The company cautions that forward-looking statements are subject to risks and uncertainties inherent in the business[16][17]