Exagen Inc. (Nasdaq: XGN), a leading provider of autoimmune
testing solutions, today reported financial results for the fourth
quarter and full year ended December 31, 2023.
Financial Highlights:
- Record total revenue of $52.5
million for the full-year 2023, and total revenue of $13.8 million
for the fourth quarter of 2023.
- Record 137,650 AVISE® CTD tests
performed for the full-year 2023, including 30,438 tests for the
fourth quarter of 2023. Over 900,000 AVISE® CTD tests performed to
date since launch.
- AVISE® CTD trailing twelve-month
average selling price (ASP) of $336, an increase of $51 over the
course of the year.
- Delivered 56% gross margin for
full-year 2023 and 59% for the fourth quarter of 2023.
- Net loss of $23.7 million for the
full-year 2023 and $5.6 million for the fourth quarter of
2023.
- Adjusted EBITDA of $(17.1) million
for the full-year 2023 and $(3.9) million in the fourth quarter of
2023.
- Cash balance of $36.5 million at
year-end 2023.
“I am extremely proud of our team's commitment and hard work
this past year. We transformed quite a bit at Exagen and together,
we are steering the company towards profitability, with a sharp
focus on increasing ASP while diligently driving down expenses and
responsibly managing cash. The progress we've made in the past year
has significantly bolstered the health of our organization. We look
forward to serving our clinicians and patients in 2024 with a
renewed organization which is very much focused on reaching our
operating goals. Our strategy has been validated and I’m confident
that the best is yet to come for Exagen,” said John Aballi,
President and Chief Executive Officer.
Fourth Quarter 2023
Financial Results
Total revenue for the fourth quarter of 2023 and 2022 was $13.8
million and $12.8 million, respectively. Total gross margin was
59.2% in the fourth quarter of 2023 compared to 50.9% in the fourth
quarter of 2022. The increase in gross margin percentage was
primarily driven by an increase in ASP.
Operating expenses were $18.9 million in the fourth quarter of
2023, compared to $27.3 million in the fourth quarter of 2022. The
year-over-year decreases in operating expenses in the fourth
quarter was primarily driven by lower selling, general and
administrative expenses due to decreases in personnel costs and
lower research and development expenses.
For the fourth quarter of 2023, net loss was $5.6 million,
compared to a net loss of $14.4 million for the fourth quarter of
2022 (which includes a $5.5 million impairment of goodwill that we
recognized in the fourth quarter of 2022).
Adjusted EBITDA was $(3.9) million for the fourth quarter of
2023 compared to $(13.4) million for the fourth quarter of
2022.
A reconciliation of non-GAAP adjusted EBITDA 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).”
Full-Year 2023
Financial Results
Total revenue for full-year 2023 was $52.5 million, compared
with $45.6 million for full-year 2022. Total gross margin was 56.1%
for the full-year 2023 compared to 46.9% in 2022.
Operating expenses were $75.4 million for the full-year 2023,
compared with $91.6 million for the full-year 2022.
Net loss was $23.7 million for the full year of 2023, compared
with $47.4 million for the full year of 2022.
Adjusted EBITDA was $(17.1) million for the full-year 2023
compared to $(39.8) million during the same period in 2022.
Cash and cash equivalents were approximately $36.5 million as of
December 31, 2023 and our accounts receivables were $6.5
million as of December 31, 2023.
Guidance
For full-year 2024 revenue, we are providing
guidance of approximately $54 million. For first quarter 2024
revenue, we are providing a guidance range of $13.0 million to
$13.5 million. For full-year 2024, we believe our adjusted EBITDA
will be better than negative $20 million. Given our continued
improved performance, we believe our existing cash and cash
equivalents are adequate to meet our anticipated cash requirements
into 2026.
Conference CallA conference
call to provide a business update and review fourth quarter and
full-year 2023 financial results is scheduled for today
March 18, 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, April 1, 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 13743861. 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 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), income tax (expense) benefit,
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 ExagenExagen 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 StatementsExagen 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; 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;
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 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.com760.560.1525
Exagen Inc.Statements of
Operations(in thousands, except share and per
share data) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
|
|
|
Revenue |
|
$ |
13,765 |
|
|
$ |
12,837 |
|
|
$ |
52,548 |
|
|
$ |
45,563 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
|
|
5,620 |
|
|
|
6,309 |
|
|
|
23,092 |
|
|
|
24,214 |
|
Selling, general and administrative expenses |
|
|
12,216 |
|
|
|
12,812 |
|
|
|
47,428 |
|
|
|
52,018 |
|
Research and development expenses |
|
|
1,076 |
|
|
|
2,701 |
|
|
|
4,865 |
|
|
|
9,876 |
|
Goodwill impairment |
|
|
— |
|
|
|
5,506 |
|
|
|
— |
|
|
|
5,506 |
|
Total operating expenses |
|
|
18,912 |
|
|
|
27,328 |
|
|
|
75,385 |
|
|
|
91,614 |
|
Loss from operations |
|
|
(5,147 |
) |
|
|
(14,491 |
) |
|
|
(22,837 |
) |
|
|
(46,051 |
) |
Interest expense |
|
|
(566 |
) |
|
|
(626 |
) |
|
|
(2,335 |
) |
|
|
(2,448 |
) |
Interest income |
|
|
146 |
|
|
|
481 |
|
|
|
1,516 |
|
|
|
830 |
|
Loss before income taxes |
|
|
(5,567 |
) |
|
|
(14,636 |
) |
|
|
(23,656 |
) |
|
|
(47,669 |
) |
Income tax (expense)
benefit |
|
|
(6 |
) |
|
|
282 |
|
|
|
(33 |
) |
|
|
282 |
|
Net loss |
|
$ |
(5,573 |
) |
|
$ |
(14,354 |
) |
|
$ |
(23,689 |
) |
|
$ |
(47,387 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.31 |
) |
|
$ |
(0.83 |
) |
|
$ |
(1.34 |
) |
|
$ |
(2.77 |
) |
Weighted-average number of
shares used to compute net loss per share, basic and diluted |
|
|
17,836,090 |
|
|
|
17,194,293 |
|
|
|
17,679,467 |
|
|
|
17,082,348 |
|
Exagen Inc.Condensed Balance
Sheets(in thousands, except share and per share
data) |
|
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
36,493 |
|
|
$ |
62,391 |
|
Accounts receivable, net |
|
|
6,551 |
|
|
|
6,077 |
|
Prepaid expenses and other current assets |
|
|
4,797 |
|
|
|
4,143 |
|
Total current assets |
|
|
47,841 |
|
|
|
72,611 |
|
Property and equipment,
net |
|
|
5,201 |
|
|
|
8,197 |
|
Operating lease right-of-use
assets |
|
|
3,286 |
|
|
|
4,885 |
|
Other assets |
|
|
616 |
|
|
|
528 |
|
Total assets |
|
$ |
56,944 |
|
|
$ |
86,221 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
3,131 |
|
|
$ |
3,046 |
|
Operating lease liabilities |
|
|
976 |
|
|
|
1,040 |
|
Borrowings-current portion |
|
|
264 |
|
|
|
190 |
|
Accrued and other current liabilities |
|
|
7,531 |
|
|
|
5,347 |
|
Total current liabilities |
|
|
11,902 |
|
|
|
9,623 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
|
|
19,231 |
|
|
|
28,778 |
|
Non-current operating lease
liabilities |
|
|
2,760 |
|
|
|
4,493 |
|
Other non-current
liabilities |
|
|
357 |
|
|
|
867 |
|
Total liabilities |
|
|
34,250 |
|
|
|
43,761 |
|
Commitments and contingencies
(Note 5) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, $0.001 par value; 200,000,000 shares authorized at
December 31, 2023 and December 31, 2022; 17,045,954 and 16,549,984
shares issued and outstanding at December 31, 2023 and December 31,
2022, respectively |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
301,893 |
|
|
|
297,970 |
|
Accumulated deficit |
|
|
(279,216 |
) |
|
|
(255,527 |
) |
Total stockholders' equity |
|
|
22,694 |
|
|
|
42,460 |
|
Total liabilities and
stockholders' equity |
|
$ |
56,944 |
|
|
$ |
86,221 |
|
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. |
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
(in thousands) |
|
Adjusted
EBITDA |
|
|
|
Net loss |
$ |
(23,689 |
) |
|
$ |
(47,387 |
) |
Other (Income) Expense |
|
(1,516 |
) |
|
|
(830 |
) |
Interest Expense |
|
2,335 |
|
|
|
2,448 |
|
Income tax expense (benefit) |
|
33 |
|
|
|
(282 |
) |
Depreciation and amortization expense |
|
2,168 |
|
|
|
1,557 |
|
Stock-based compensation expense |
|
3,617 |
|
|
|
4,704 |
|
Adjusted EBITDA
(Non-GAAP) |
$ |
(17,052 |
) |
|
$ |
(39,790 |
) |
Grafico Azioni Exagen (NASDAQ:XGN)
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Grafico Azioni Exagen (NASDAQ:XGN)
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