Exagen Inc. Reports Strong Second Quarter 2023 Results
August 07 2023 - 8:00AM
Exagen Inc. (Nasdaq: XGN), a leading provider of autoimmune testing
solutions, today reported financial results for the quarter ended
June 30, 2023.
Second Quarter Highlights:
- Delivered a record 37,749 AVISE® CTD
tests in the second quarter, an 8% increase over the second quarter
of 2022.
- Recognized total revenue of $14.1
million for the second quarter, a 26% increase over the first
quarter of 2023.
- Achieved gross margin of 54% in the
six months ended June 30, 2023.
- AVISE® CTD trailing twelve-month ASP
of $320.
"I'm very proud of the Exagen team and the results we have
delivered as we operate a more effective organization, ensuring we
continue to provide the best testing solutions to the Rheumatology
community. Although these results have surpassed our expectations,
our ambitions for the future remain even greater," said John
Aballi, President and Chief Executive Officer of Exagen.
Second Quarter
2023 Financial Results
Revenue was $14.1 million for the second quarter of 2023,
compared with $11.2 million in the first quarter of 2023 and $7.6
million in the second quarter of 2022, primarily due to an increase
in ASP and, as previously disclosed, due to Q2 2022 Medicare
revenue being constrained and recognized in Q3 of 2022.
Gross margin was 58.7% in the second quarter of 2023, compared to
47.2% in the first quarter of 2023 and 20.1% in the second quarter
of 2022, primarily due to increased accrual rates due to improved
collections from prior periods.
Operating expenses were $19.1 million in the second quarter of
2023, compared with $21.7 million in the second quarter of 2022,
primarily due to decreases in employee related expenses from the
reduction in force in early December 2022.
For the second quarter of 2023, net loss was $5.0 million,
compared to a net loss of $7.7 million in the first quarter of 2023
and a net loss of $14.7 million in the second quarter of 2022.
Cash and cash equivalents were $31.5 million as of June 30,
2023, which reflects the $10 million principal prepayment we made
when refinancing our debt on April 28 of this year and an increase
in accounts receivable to $16.2 million.
2023 Guidance
We are providing revenue guidance for the third
quarter of 2023 in the range of $10 million to $10.5
million.
Conference Call
A conference call to review second quarter 2023 financial
results and to provide a business update is scheduled for today
August 7, 2023 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, August 21, 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 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 Twitter.
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, strategies and ambitions; the potential utility and
effectiveness of Exagen’s services and testing solutions, potential
shareholder value and growth, and 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, 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.
Investor RelationsExagen Inc.Ryan
Douglasrdouglas@exagen.com760.560.1525
CompanyExagen Inc.Kamal Adawi, Chief Financial
Officerkadawi@exagen.com
Exagen Inc.
Unaudited Condensed Statements of
Operations(in thousands, except share and per
share data)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
Revenue |
|
$ |
14,137 |
|
|
$ |
7,606 |
|
|
$ |
25,367 |
|
|
$ |
18,000 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Costs of revenue |
|
|
5,836 |
|
|
|
6,078 |
|
|
|
11,762 |
|
|
|
11,895 |
|
Selling, general and administrative expenses |
|
|
11,953 |
|
|
|
12,903 |
|
|
|
23,837 |
|
|
|
25,055 |
|
Research and development expenses |
|
|
1,263 |
|
|
|
2,689 |
|
|
|
2,389 |
|
|
|
4,793 |
|
Total operating expenses |
|
|
19,052 |
|
|
|
21,670 |
|
|
|
37,988 |
|
|
|
41,743 |
|
Loss from operations |
|
|
(4,915 |
) |
|
|
(14,064 |
) |
|
|
(12,621 |
) |
|
|
(23,743 |
) |
Interest expense |
|
|
(574 |
) |
|
|
(606 |
) |
|
|
(1,212 |
) |
|
|
(1,204 |
) |
Interest income |
|
|
476 |
|
|
|
5 |
|
|
|
1,132 |
|
|
|
10 |
|
Net loss |
|
$ |
(5,013 |
) |
|
$ |
(14,665 |
) |
|
$ |
(12,701 |
) |
|
$ |
(24,937 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.86 |
) |
|
$ |
(0.72 |
) |
|
$ |
(1.46 |
) |
Weighted-average number of shares
used to compute net loss per share, basic and diluted |
|
|
17,655,483 |
|
|
|
17,058,516 |
|
|
|
17,591,478 |
|
|
|
17,025,636 |
|
Exagen Inc.
Unaudited Condensed Balance
Sheets(in thousands, except share and per share
data)
|
|
June 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
31,466 |
|
|
$ |
62,391 |
|
Accounts receivable, net |
|
|
16,235 |
|
|
|
6,077 |
|
Prepaid expenses and other current assets |
|
|
3,570 |
|
|
|
4,143 |
|
Total current assets |
|
|
51,271 |
|
|
|
72,611 |
|
Property and equipment, net |
|
|
7,875 |
|
|
|
8,197 |
|
Operating lease right-of-use
assets |
|
|
4,412 |
|
|
|
4,885 |
|
Other assets |
|
|
620 |
|
|
|
528 |
|
Total assets |
|
$ |
64,178 |
|
|
$ |
86,221 |
|
Liabilities and
Stockholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,309 |
|
|
$ |
3,046 |
|
Accrued and other current liabilities |
|
|
5,933 |
|
|
|
5,347 |
|
Operating lease liabilities |
|
|
1,104 |
|
|
|
1,040 |
|
Borrowings-current portion |
|
|
257 |
|
|
|
190 |
|
Total current liabilities |
|
|
8,603 |
|
|
|
9,623 |
|
Borrowings-non-current
portion, net of discounts and debt issuance costs |
|
|
19,153 |
|
|
|
28,778 |
|
Non-current operating lease
liabilities |
|
|
3,923 |
|
|
|
4,493 |
|
Other non-current
liabilities |
|
|
597 |
|
|
|
867 |
|
Total liabilities |
|
|
32,276 |
|
|
|
43,761 |
|
Commitments and contingencies
(Note 5) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no
shares issued or outstanding as of June 30, 2023 and December
31, 2022 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 200,000,000 shares authorized as of
June 30, 2023 and December 31, 2022; 16,858,194 and 16,549,984
shares issued and outstanding as of June 30, 2023 and December
31, 2022, respectively |
|
|
17 |
|
|
|
17 |
|
Additional paid-in capital |
|
|
300,113 |
|
|
|
297,970 |
|
Accumulated deficit |
|
|
(268,228 |
) |
|
|
(255,527 |
) |
Total stockholders' equity |
|
|
31,902 |
|
|
|
42,460 |
|
Total liabilities and
stockholders' equity |
|
$ |
64,178 |
|
|
$ |
86,221 |
|
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