Exagen Inc. Reports Fourth Quarter and Full Year 2022 Results
March 20 2023 - 4:05PM
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, 2022.
Recent Highlights:
- Record 135,210 flagship AVISE® CTD
tests, for the full year 2022, including 33,819 tests for the
fourth quarter of 2022. Since the launch of AVISE® CTD in 2012, we
have now delivered approximately 750,000 of these tests.
- Total revenue of $45.6 million for
the year ended December 31, 2022, and total revenue of $12.8
million for the fourth quarter of 2022.
- John Aballi, President and CEO, joined the Company in the
fourth quarter of 2022 and implemented a new strategy focused on
reducing cash burn and driving ASP and GM improvement to ultimately
reach profitability with current cash balance.
“I’m pleased to be joining Exagen at this exciting time and am
happy with our team’s performance to finish the year.
2022 saw significant improvement in our Medicare rate and record
AVISE CTD testing delivered, providing rheumatologists with the
best diagnostic tool for a comprehensive autoimmune
evaluation. I’m excited to be part of this team and
look forward to an even better 2023,” said John Aballi, President
and CEO.
Fourth Quarter 2022
Financial Results
Total revenue for the three months ended December 31, 2022 and
2021 was $12.8 million and $12.7 million, respectively. Total gross
margin was 50.9% in the fourth quarter of 2022 compared to 61.1% in
the fourth quarter of 2021. The decrease in gross margin percentage
was driven by an increase in COGS mostly attributable to
inflationary pressures and a decrease in other testing volume,
which was slightly offset by an increase in ASP.
Operating expenses were $27.3 million in the fourth quarter of
2022, compared to $18.9 million in the fourth quarter of 2021.
Operating expenses in the fourth quarter include a one-time
impairment in the amount of $5.5 million of goodwill from 2010.
Additional year-over-year increases were primarily due to an
increase in employee related expenses due to headcount and
inflation, an increase in public company expenses, an increase in
marketing expenditures, and a one-time $1.2 million charge for
severance payments related to our reduction-in-force and the CEO
transition.
For the fourth quarter of 2022, net loss was $14.4 million, of
which $6.7 million was from goodwill impairment and severance
charges, compared to a net loss of $7.1 million for the fourth
quarter of 2021.
Cash and cash equivalents were approximately $62.4 million as of
December 31, 2022.
Full Year 2022
Financial Results
Total revenue for full year 2022 was $45.6 million, compared
with $48.3 million for the full year 2021. Total gross margin was
46.9% for the full year 2022 compared to 57.4% in 2021.
Operating expenses were $91.6 million for the full year of 2022,
compared with $72.4 million for the full year of 2021.
Net loss was $47.4 million for the full year of 2022, compared
with $26.9 million for the full year of 2021.
Guidance
For the first quarter 2023, we are increasing guidance to be in
the range of $9.2 million to $9.7 million, up from $8.2 million to
$9.2 million conveyed at the start of the quarter.
Conference Call
A conference call to provide a business update and review fourth
quarter and year-end 2022 financial results is scheduled for today
March 20, 2023 at 4:30 PM Eastern Time (1:30 PM 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 3, 2023 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 13736103. A link to the replay of the webcast will
also be available in the investor relations section of Exagen's
website.
About Exagen
Exagen is dedicated to transforming the care continuum for
patients suffering from debilitating and chronic autoimmune
diseases by enabling timely differential diagnosis and optimizing
therapeutic intervention. Exagen has developed and is
commercializing a portfolio of innovative testing products under
its AVISE® brand, several of which are based on our proprietary
Cell-Bound Complement Activation Products, or CB-CAPs, technology.
Exagen’s goal is to enable providers to improve care for patients
through the differential diagnosis, prognosis and monitoring of
complex autoimmune and autoimmune-related diseases, including
rheumatoid arthritis and lupus. For further information please
visit www.Exagen.com.
Forward Looking Statements
Exagen 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 and strategies; the potential utility and effectiveness of
Exagen's services and testing solutions that are currently
available; the ability of the Company to obtain and maintain wider
and consistent reimbursement for its tests; Exagen's future
potential growth; and the 2023 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: the COVID-19 pandemic may
continue to adversely affect our business, financial condition and
results of operations, including as a result of shutdowns of our
facilities and operations as well as those of our suppliers and
courier services, impeding patient movement and interruptions to
healthcare services causing a decrease in test volumes, disruptions
to the supply chain of material needed for our tests, our sales and
commercialization activities and our ability to receive specimens
and perform or deliver the results from our tests, 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 our tests; the
Company’s commercial success depends upon attaining and maintaining
significant market acceptance of its testing products and promoted
therapeutics among rheumatologists, patients, third-party payors
and others in the medical community; the Company’s ability to
successfully execute on its business strategies, third-party payors
not providing coverage and adequate reimbursement for the Company’s
testing products; the Company’s ability to obtain and maintain
intellectual property protection for its testing products;
regulatory developments affecting the Company’s business; and other
risks described in Exagen’s prior press releases and Exagen’s
filings with the Securities and Exchange Commission, or SEC,
including under the heading “Risk Factors” in Exagen’s Annual
Report on Form 10-K for the year ended December 31, 2022 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.
CONTACTS:
Investor RelationsExagen Inc.Ryan
Douglasrdouglas@exagen.com760.560.1525
CompanyExagen Inc.Kamal Adawi, Chief Financial
Officerkadawi@exagen.com
Exagen Inc.
Statements of
Operations(in thousands, except share and per
share data)
|
|
Three Months EndedDecember 31, |
|
Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(Unaudited) |
|
|
|
|
Revenue |
|
$ |
12,837 |
|
|
$ |
12,689 |
|
|
$ |
45,563 |
|
|
$ |
48,299 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
|
|
6,309 |
|
|
|
4,939 |
|
|
|
24,214 |
|
|
|
20,588 |
|
Selling, general and administrative expenses |
|
|
12,812 |
|
|
|
11,802 |
|
|
|
52,018 |
|
|
|
44,541 |
|
Research and development expenses |
|
|
2,701 |
|
|
|
2,202 |
|
|
|
9,876 |
|
|
|
7,237 |
|
Goodwill impairment |
|
|
5,506 |
|
|
|
— |
|
|
|
5,506 |
|
|
|
— |
|
Total operating expenses |
|
|
27,328 |
|
|
|
18,943 |
|
|
|
91,614 |
|
|
|
72,366 |
|
Loss from operations |
|
|
(14,491 |
) |
|
|
(6,254 |
) |
|
|
(46,051 |
) |
|
|
(24,067 |
) |
Interest expense |
|
|
(626 |
) |
|
|
(639 |
) |
|
|
(2,448 |
) |
|
|
(2,625 |
) |
Interest income |
|
|
481 |
|
|
|
15 |
|
|
|
830 |
|
|
|
16 |
|
Loss before income taxes |
|
|
(14,636 |
) |
|
|
(6,878 |
) |
|
|
(47,669 |
) |
|
|
(26,676 |
) |
Income tax expense |
|
|
282 |
|
|
|
(175 |
) |
|
|
282 |
|
|
|
(175 |
) |
Net loss |
|
$ |
(14,354 |
) |
|
$ |
(7,053 |
) |
|
$ |
(47,387 |
) |
|
$ |
(26,851 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.83 |
) |
|
$ |
(0.42 |
) |
|
$ |
(2.77 |
) |
|
$ |
(1.68 |
) |
Weighted-average number of
shares used to compute net loss per share, basic and diluted |
|
|
17,194,293 |
|
|
|
16,969,614 |
|
|
|
17,082,348 |
|
|
|
15,972,256 |
|
Exagen Inc.
Condensed Balance
Sheets(in thousands, except share and per share
data)
|
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
62,391 |
|
|
$ |
99,442 |
|
Accounts receivable, net |
|
|
6,077 |
|
|
|
9,654 |
|
Prepaid expenses and other current assets |
|
|
4,143 |
|
|
|
3,638 |
|
Total current assets |
|
|
72,611 |
|
|
|
112,734 |
|
Property and equipment,
net |
|
|
8,197 |
|
|
|
4,772 |
|
Operating lease right-of-use
assets |
|
|
4,885 |
|
|
|
— |
|
Goodwill |
|
|
— |
|
|
|
5,506 |
|
Other assets |
|
|
528 |
|
|
|
433 |
|
Total assets |
|
$ |
86,221 |
|
|
$ |
123,445 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
3,046 |
|
|
$ |
2,492 |
|
Operating lease liabilities |
|
|
1,040 |
|
|
|
— |
|
Borrowings-current portion |
|
|
190 |
|
|
|
— |
|
Accrued and other current liabilities |
|
|
5,347 |
|
|
|
6,826 |
|
Total current liabilities |
|
|
9,623 |
|
|
|
9,318 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
|
|
28,778 |
|
|
|
27,478 |
|
Non-current operating lease
liabilities |
|
|
4,493 |
|
|
|
— |
|
Deferred tax liabilities |
|
|
— |
|
|
|
306 |
|
Other non-current
liabilities |
|
|
867 |
|
|
|
1,407 |
|
Total liabilities |
|
|
43,761 |
|
|
|
38,509 |
|
Commitments and contingencies
(Note 5) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, $0.001 par value; 200,000,000 shares authorized at
December 31, 2022 and December 31, 2021; 16,549,984 and 16,164,994
shares issued and outstanding at December 31, 2022 and December 31,
2021, respectively |
|
|
17 |
|
|
|
16 |
|
Additional paid-in capital |
|
|
297,970 |
|
|
|
293,060 |
|
Accumulated deficit |
|
|
(255,527 |
) |
|
|
(208,140 |
) |
Total stockholders' equity |
|
|
42,460 |
|
|
|
84,936 |
|
Total liabilities and
stockholders' equity |
|
$ |
86,221 |
|
|
$ |
123,445 |
|
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