Press Release Details
Exagen Inc. Reports Third Quarter 2019 Results
AVISE® Testing Revenue Drives 27% Revenue Growth
Recent Highlights:
- Experienced record demand, including a 29% increase of flagship AVISE® CTD volume, including AVISE® Lupus, to 27,159 tests.
- Grew the number of ordering healthcare providers by 29% to 1,591, compared to the third quarter of 2018, with 98% healthcare provider adopter retention.
- Generated total revenue of
$10.4 million for the third quarter of 2019, representing 27% growth over the third quarter of 2018. - Successfully completed initial public offering in September, selling 4.14 million shares of stock with aggregate gross proceeds to the company of
$58.0 million . - Advanced strategic integrated testing and therapeutics strategy (Dx/Rx) through co-promotion agreement with Janssen Biotech for SIMPONI®.
- Further expanded the salesforce to 55 representatives to execute Dx/Rx strategy.
“The Exagen team took an important step in the quarter by completing our initial public offering, which will help enable the company’s continued growth. The company continues to execute at a high level, delivering another record quarter of testing volumes, increasing the number of ordering healthcare providers, and benefiting patients suffering from chronic autoimmune diseases. This continued traction resulted in revenue growth of 27%. Our results are indicative of our momentum and we believe we are well-positioned for continued growth in 2019 and beyond,” said
Third Quarter 2019 Financial Results
Revenue for the three months ended
Gross margins improved to 54% in the third quarter of 2019 compared to 53% in the third quarter of 2018, driven by higher testing volumes.
Operating expenses increased to
For the third quarter of 2019, net loss was
Cash and cash equivalents were approximately
2019 Guidance
For the full year 2019,
Conference Call
A conference call to discuss third quarter 2019 financial results is scheduled for today
About
Forward Looking Statements
CONTACTS:
Investors
Mike.Cavanaugh@westwicke.com
646.677.1838
Company
kadawi@exagen.com
760.477.5514
Unaudited Condensed Statements of Operations
(in thousands, except share and per share data)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 10,439 | $ | 8,223 | $ | 30,173 | $ | 22,799 | ||||||||
Operating expenses: | ||||||||||||||||
Costs of revenue (excluding amortization of purchased technology) | 4,783 | 3,852 | 14,217 | 11,376 | ||||||||||||
Selling, general and administrative expenses | 7,306 | 4,932 | 20,787 | 14,419 | ||||||||||||
Research and development expenses | 507 | 525 | 1,610 | 1,592 | ||||||||||||
Amortization of intangible assets | — | 47 | — | 141 | ||||||||||||
Total operating expenses | 12,596 | 9,356 | 36,614 | 27,528 | ||||||||||||
Loss from operations | (2,157 | ) | (1,133 | ) | (6,441 | ) | (4,729 | ) | ||||||||
Interest expense | (909 | ) | (704 | ) | (2,720 | ) | (2,098 | ) | ||||||||
Change in fair value of financial instruments | (200 | ) | 55 | 267 | 55 | |||||||||||
Other income, net | 125 | 26 | 264 | 77 | ||||||||||||
Net loss | (3,141 | ) | (1,756 | ) | (8,630 | ) | (6,695 | ) | ||||||||
Accretion of redeemable convertible preferred stock | (338 | ) | (2,768 | ) | (4,640 | ) | (6,462 | ) | ||||||||
Deemed dividend recorded in connection with financing transactions | (13,601 | ) | — | (13,601 | ) | (1,152 | ) | |||||||||
Net loss attributable to common stockholders | $ | (17,080 | ) | $ | (4,524 | ) | $ | (26,871 | ) | $ | (14,309 | ) | ||||
Net loss per share, basic and diluted | $ | (11.29 | ) | $ | (71.80 | ) | $ | (48.70 | ) | $ | (227.11 | ) | ||||
Weighted-average number of shares used to compute net loss per share, basic and diluted | 1,513,189 | 63,005 | 551,730 | 63,005 | ||||||||||||
Condensed Balance Sheets
(in thousands, except share and per share data)
September 30, 2019 | December 31, 2018 | |||||||
(Unaudited) | (As Revised) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 77,828 | $ | 13,164 | ||||
Accounts receivable, net | 6,238 | 5,952 | ||||||
Prepaid expenses and other current assets | 1,686 | 2,196 | ||||||
Total current assets | 85,752 | 21,312 | ||||||
Property and equipment, net | 1,314 | 1,566 | ||||||
Goodwill | 5,506 | 5,506 | ||||||
Other assets | 172 | 503 | ||||||
Total assets | $ | 92,744 | $ | 28,887 | ||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,213 | $ | 1,279 | ||||
Accrued liabilities | 6,449 | 3,923 | ||||||
Proceeds received prior to issuance of Series G redeemable convertible preferred stock | — | 3,750 | ||||||
Total current liabilities | 7,662 | 8,952 | ||||||
Borrowings-non-current portion, net of discounts and debt issuance costs | 25,677 | 24,617 | ||||||
Redeemable convertible preferred stock warrant liabilities | — | 1,503 | ||||||
Deferred tax liabilities | 245 | 245 | ||||||
Other non-current liabilities | 510 | 304 | ||||||
Total liabilities | 34,094 | 35,621 | ||||||
Commitments and contingencies | ||||||||
Redeemable convertible preferred stock, $0.001 par value; 750,300,000 shares authorized; none and 532,606,084 shares issued and outstanding at September 30, 2019 (unaudited) and December 31, 2018, respectively; liquidation preference of $0 and $163,316 at September 31, 2019 (unaudited) and December 31, 2018, respectively |
— | 105,232 | ||||||
Stockholders' equity (deficit): | ||||||||
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued or outstanding at September 30, 2019; no shares authorized, issued or outstanding at December 31, 2018 |
— | — | ||||||
Common stock, $0.001 par value; 200,000,000 and 1,470,000,000 shares authorized at September 30, 2019 (unaudited) and December 31, 2018, respectively; 12,559,492 and 63,005 shares issued and outstanding at September 30, 2019 (unaudited) and December 31, 2018, respectively |
13 | — | ||||||
Additional paid-in capital | 219,831 | 40,598 | ||||||
Accumulated deficit | (161,194 | ) | (152,564 | ) | ||||
Total stockholders' equity (deficit) | 58,650 | (111,966 | ) | |||||
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 92,744 | $ | 28,887 |
Source: Exagen, Inc.