Augmedix(US:AUGX)2022-08-12 21:21Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $7.3 million, representing a 42% year-over-year growth from $5.2 million in Q2 2021 [9][16] - Dollar-based net revenue retention for Q2 2022 was 131%, up from 113% in Q2 2021 [16] - Adjusted gross margin for Q2 2022 was 44%, slightly down from 45% in the same period last year [17] - Total operating expenses for Q2 2022 were $9.3 million, with non-GAAP operating expenses growing 33% year-over-year [17] - Adjusted EBITDA loss for Q2 2022 was $5.3 million, compared to a loss of $4 million in Q2 2021 [18] Business Line Data and Key Metrics Changes - The average number of clinicians in service rose 49% year-over-year in Q2 2022, building on a 53% growth in Q1 2022 [16] - The company added several enterprise customers in Q2 2022, indicating successful conversion of its pipeline [9] Market Data and Key Metrics Changes - The company reported a significant increase in bookings in June 2022, marking the best month ever for bookings [9][28] - The total addressable market (TAM) is estimated at $6 billion, with over 57,000 physicians representing a TAM of over $1 billion [25][26] Company Strategy and Development Direction - The company is focused on expanding enterprise customer relationships and enhancing its AI-driven core platform [8] - A partnership with Adventist Health aims to automate medical documentation across multiple specialties [10] - The company is developing new products, including a pre-charting solution and a self-serve product, to address administrative workflow challenges [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities and the ability to reduce cash burn as gross profit outpaces operating expenses [19][21] - The company expects revenue growth in Q3 2022 to be in the range of 37% to 39% year-over-year, with revenue guidance of approximately $7.7 million to $7.8 million [20] Other Important Information - The company has over two years of operating runway and options to extend that runway without issuing additional equity [19] - The partnership with Google has been deepened to include a systematic go-to-market collaboration [11] Q&A Session Summary Question: Can you provide more detail on the Adventist relationship? - The company identifies ideal candidates for its services based on work relative value units (wRVU) and time spent in EHR per visit, leading to significant penetration growth at Adventist [24] Question: Can you provide insights on June bookings? - June was the best month for bookings, with a shortening of the sales cycle noted [28] Question: What is the proportion of new clinicians using live versus notes? - The percentage of revenue from notes is expanding, though it is not yet the majority [32] Question: Is there potential to expand services to nurses and support staff? - The company has recently deployed solutions addressing nurses' needs, indicating a significant market opportunity [36] Question: Can you discuss the potential of the Trio partnership? - The partnership with Trio Health has potential for additional revenue, particularly through the CIIC membership [40] Question: How do currency fluctuations affect the business? - The strengthening of the US dollar has provided more buying power in operations based in India and Bangladesh [56] Question: What is the outlook for cash flow breakeven? - The company has over two years of operating runway, with expectations for revenue growth to outpace operating expenses [59]