Burning Rock Dx(BNR) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenues for Q1 2024 were RMB 125.6 million (US$ 17.4 million), a decrease of 11.9% from RMB 142.5 million in Q1 2023[3] - Revenue from in-hospital business increased by 11.3% to RMB 57.4 million (US$ 7.9 million) compared to RMB 51.6 million in Q1 2023[3] - Revenue from central laboratory business decreased by 23.0% to RMB 47.6 million (US$ 6.6 million) from RMB 61.8 million in Q1 2023[3] - Total revenues for the three months ended September 30, 2023, were RMB 127,566, a decrease of 13% compared to RMB 146,268 for the previous quarter[19] Profitability - Gross profit for Q1 2024 was RMB 85.7 million (US$ 11.9 million), representing a 13.2% decrease from RMB 98.8 million in Q1 2023[5] - Non-GAAP gross profit for Q1 2024 was RMB 93.0 million (US$ 12.9 million), a decrease of 13.8% from RMB 107.9 million in Q1 2023[6] - Gross profit for the three months ended September 30, 2023, was RMB 85,920, representing a gross margin of approximately 67.3%[19] - Total gross profit for the three months ended September 30, 2023, was RMB 85,920 thousand, a decrease from RMB 100,422 thousand in June 2023[26] - Non-GAAP gross profit for the same period was RMB 95,084 thousand, compared to RMB 109,369 thousand in June 2023[26] - Non-GAAP gross margin for the three months ended September 30, 2023, was 74.5%, down from 74.8% in June 2023[26] Operating Expenses - Operating expenses decreased by 26.4% to RMB 211.5 million (US$ 29.3 million) in Q1 2024 from RMB 287.2 million in Q1 2023[7] - Operating expenses totaled RMB 264,735 for the three months ended September 30, 2023, a decrease of 10% from RMB 236,146 in the previous quarter[19] Net Loss - Net loss for Q1 2024 was RMB 121.5 million (US$ 16.8 million), an improvement from a net loss of RMB 185.3 million in Q1 2023[8] - The net loss for the three months ended September 30, 2023, was RMB 174,981, compared to a net loss of RMB 131,242 in the previous quarter, reflecting a 33% increase in losses[19] Cash and Assets - As of March 31, 2024, cash, cash equivalents, restricted cash, and short-term investments totaled RMB 572.7 million (US$ 79.3 million)[8] - Cash and cash equivalents as of March 31, 2024, were RMB 572,616, down from RMB 615,096 as of December 31, 2023[21] - Total current assets decreased to RMB 840,848 as of March 31, 2024, from RMB 884,096 as of December 31, 2023[21] - Total liabilities as of March 31, 2024, were RMB 268,094, a slight decrease from RMB 271,591 as of December 31, 2023[23] Cash Flow - The company reported a net cash used in operating activities of RMB 40,209 for the three months ended March 31, 2024, compared to RMB 113,143 for the same period in the previous year[25] Future Expectations - The company expects to achieve breakeven for the full year 2024, measured by non-GAAP gross profit minus non-GAAP SG&A[9] - The company expects a total gross profit of RMB 78,113 thousand for the three months ending December 31, 2023[26] - The company anticipates a non-GAAP gross profit of RMB 87,063 thousand for the same period[26] Foreign Currency Impact - The company experienced a foreign currency translation adjustment loss of RMB 5,659 for the three months ended March 31, 2024[19] Segment Performance - Central laboratory channel gross profit was RMB 41,487 thousand for September 2023, a decline from RMB 51,876 thousand in June 2023[26] - In-hospital channel gross profit increased to RMB 35,459 thousand in September 2023, up from RMB 33,353 thousand in June 2023[26] - Pharma research and development channel gross profit dropped to RMB 8,974 thousand in September 2023, down from RMB 15,193 thousand in June 2023[26] - Non-GAAP gross profit for the central laboratory channel was RMB 44,037 thousand in September 2023, compared to RMB 54,521 thousand in June 2023[26] - Non-GAAP gross margin for the in-hospital channel was 70.1% in September 2023, a decrease from 66.9% in June 2023[26]