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Exagen(XGN) - 2024 Q3 - Earnings Call Transcript
XGNExagen(XGN)2024-11-12 18:09
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Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 12.5million,down712.5 million, down 7% compared to Q3 2023, primarily due to one-time adjustments [17][18] - Excluding these adjustments, revenue was 13.7 million, up about 2% over 2023, and year-to-date revenue was 42million,up842 million, up 8% over 2023 [17] - Adjusted EBITDA loss for Q3 2024 was approximately 4 million, compared to 3.6millionin2023,whileyear−to−dateadjustedEBITDAlossimprovedto3.6 million in 2023, while year-to-date adjusted EBITDA loss improved to 7.6 million from 13.2millionin2023[21][24]BusinessLineDataandKeyMetricsChanges−AVISEtestingvolumewasslightlydownquarter−over−quarterduetoseasonalfactors,buttheaveragesellingprice(ASP)improvedfortheseventhconsecutivequarter,reaching13.2 million in 2023 [21][24] Business Line Data and Key Metrics Changes - AVISE testing volume was slightly down quarter-over-quarter due to seasonal factors, but the average selling price (ASP) improved for the seventh consecutive quarter, reaching 404 per CTD test [8] - The adjusted EBITDA loss was approximately 4millionforthequarter,witha304 million for the quarter, with a 30% improvement expected for the full year [8][21] Market Data and Key Metrics Changes - The company experienced a significant impact from hurricanes, resulting in a 50% loss of testing volume out of Florida for two and a half weeks at the end of Q3 and into Q4 [34] - The ASP expansion and expense management have contributed to narrowing losses, with a net loss of 5 million for Q3 2024, an improvement of nearly 40% over the same period in 2023 [21] Company Strategy and Development Direction - The company is focused on delivering profitable growth and aims to achieve cash flow positivity by the end of next year [7][23] - New proprietary markers are being developed for the AVISE CTD platform, with a commercial launch expected by year-end [11][13] - The company is enhancing its marketing efforts and has revised its test reports to improve clinician experience and streamline workflow [61][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the business despite short-term challenges, emphasizing the importance of the upcoming product launches [7][24] - The company anticipates substantial impact from new marker enhancements, with expectations for significant revenue growth in 2025 [31][32] Other Important Information - The company ended Q3 2024 with cash and cash equivalents of 22million,representinganetcashburnof22 million, representing a net cash burn of 2.5 million for the quarter [22] - Full-year 2024 revenue is now expected to be between 55millionand55 million and 56 million, reflecting the impact of one-time adjustments [24] Q&A Session Summary Question: Can you elaborate on the one-time adjustments and their implications? - The 1.2millioninadjustmentsincludeda1.2 million in adjustments included a 300,000 reversal of revenue due to a coding discrepancy and a $900,000 reserve for at-risk accounts receivable [28][29] Question: What impact do you expect from the new biomarker launch in 2025? - The company anticipates a substantial impact from the new markers, with established CPT codes expected to facilitate coverage [31][32] Question: How did the hurricanes affect testing volume? - The company lost approximately 50% of testing volume out of Florida for two and a half weeks due to the hurricanes [34] Question: What feedback have you received from clinicians regarding the new test report? - Clinicians have expressed positive feedback on the revised test report, which enhances usability and clarity [70] Question: What are the company's plans for capacity expansion? - The company has the potential to double its lab capacity with the addition of a night shift and has already made capital upgrades to support this [63]