“The fourth quarter was a solid end to a strong year for
“We are pleased with the early performance of Augmedix Go, our clinician-controlled mobile app that uses ambient AI technology and structured data to create a fully automated draft medical note,” continued Krakaris. “Feedback has been encouraging in terms of quality and acceptance by clinicians. Initial orders for the ambulatory version since it was made generally available in December have met our expectations. Meanwhile, the emergency room version of Augmedix Go is on track for its own General Availability release by the end of March. Independently, our strategic partner HCA Healthcare is making plans for a broad roll-out across its network of hospitals.”
Concluded Krakaris, “With expanded capital resources, we are accelerating our efforts to capture the growing medical documentation opportunity in front of us. We are highly confident that our broad portfolio of products, including a high-performing automated documentation solution, that works effectively across ambulatory and acute care settings, structured data, a bi-directional communication channel to the point of care, and HITRUST certification, provide
Quarter Ended | Year Ended | ||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||
Financial Highlights: | |||||||||||||||||
Revenues | 45 | % | 45 | % | |||||||||||||
Gross profit | 54 | % | 54 | % | |||||||||||||
Gross margin | 49.3 % | 46.3 % | 300 bps | 48.0 % | 45.1 % | 290 bps | |||||||||||
Net loss | $(4,492 | ) | $(5,599 | ) | 20 | % | $(19,171 | ) | $(24,449 | ) | 22 | % | |||||
Loss per share | $(0.09 | ) | $(0.15 | ) | 40 | % | $(0.44 | ) | $(0.65 | ) | 32 | % | |||||
Adjusted EBITDA (non-GAAP) | $(3,306 | ) | $(4,470 | ) | 26 | % | $(15,210 | ) | $(19,404 | ) | 22 | % | |||||
Fourth Quarter 2023 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended
- Total revenue was
$12.7 million , slightly stronger than our January pre-announcement and an increase of 45% compared to$8.8 million . - Dollar-based Net Revenue Retention was 152% for our Health Enterprise customers compared to 126%.
- Gross Profit increased 54% to
$6.2 million from$4.0 million . - Gross Margin increased 300 basis points to 49.3% compared to 46.3%.
- Operating Expenses were
$10.6 million compared to$9.5 million . Adjusted operating expenses, a Non-GAAP metric, increased 12% to$9.9 million compared to$8.8 million . - Net loss was
$4.5 million compared to$5.6 million . - Adjusted EBITDA loss, a Non-GAAP metric, improved to
$3.3 million from$4.5 million . - Operating cash burn improved to
$0.9 million compared to$4.4 million . - Cash and cash equivalents as of
December 31, 2023 , was$46.2 million compared to$21.3 million as ofDecember 31, 2022 . - Common shares and pre-funded warrants outstanding as of
December 31, 2023 were 52,988,987. The pre-funded warrants are included in the weighted average shares outstanding for the EPS calculation. Net exercising 100% of the remaining warrants and 100% of the fully-vested and in-the-money employee equity awards at a price of$3.20 per share would add another approximately 4.1 million common shares.
Full Year 2023 Financial Highlights
All comparisons, unless otherwise noted, are to the 12 months ended
- Total revenue was
$44.9 million , an increase of 45% compared to$30.9 million . - Dollar-based Net Revenue Retention was 148% for our Health Enterprise customers compared to 128%.
- Gross Profit increased 54% to
$21.5 million from$14.0 million . - Gross Margin increased 290 basis points to 48.0% compared to 45.1%.
- Operating Expenses were
$40.3 million compared to$36.3 million . Adjusted operating expenses, a Non-GAAP metric, grew 11% to$38.0 million compared to$34.3 million . - Net loss was
$19.2 million compared to$24.4 million . - Adjusted EBITDA loss, a Non-GAAP metric, improved to
$15.2 million from$19.4 million .
Adjusted operating expenses and Adjusted EBITDA are Non-GAAP financial measures. See “Non-GAAP Financial Measures.” Please see “Non-GAAP Financial Measures” below and the Reconciliation of GAAP to Non-GAAP Metrics table below.
2024 Revenue Guidance
Based on the solid finish to 2023 and the trends we are seeing this year,
Conference Call
Definition of Key Metrics
Average Clinicians in Service: We define a clinician in service as an individual doctor, nurse practitioner or other healthcare professional using our products. We average the month-end number of clinicians in service for all months in the measurement period and the number of clinicians in service at the end of the month immediately preceding the measurement period. We believe growth in the average number of clinicians in service is a key indicator of the performance of our business as it demonstrates our ability to penetrate the market and grow our business.
Average Annual Revenue Per Clinician: Average revenue per clinician is determined as total revenue, excluding Data Services revenue, recognized during the period presented divided by the average number of clinicians in service during that same period. Using the number of clinicians in service at the end of each month, we derive an average number of clinicians in service for the periods presented. The average annual revenue per clinician will vary based upon minimum hours of service requested by clinicians, pricing, and our product mix.
Dollar-Based Net Revenue Retention: We define a "Health Enterprise" as a company or network of doctors that has at least 50 clinicians currently employed or affiliated that could utilize our services. Dollar-based net revenue retention is determined as the revenue from
About
The platform transforms natural conversations into organized medical notes, structured data, and point-of-care notifications that enhance efficiency and clinical decision support.
Incorporating data from millions of interactions across all care settings,
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted operating expenses, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted Operating Expense as total operating expenses less share-based compensation expense.
In the fourth quarter of 2023,
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from reviewing these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
For more information on the non-GAAP financial measures, please see the Reconciliation of GAAP to non-GAAP Metrics table in this press release. This accompanying table includes details on the GAAP financial measures that are most directly comparable to Non-GAAP financial measures and the related reconciliations between these financial measures.
Forward-Looking Statements
This press release contains "forward-looking statements" that involve a number of risks and uncertainties. Words such as "believes," "may," "will," "estimates," "potential," "continues," "anticipates," "intends," "expects," "could," "would," "projects," "plans," "targets," and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the encouraging feedback we have received regarding the early performance of Augmedix Go; the emergency room version of Augmedix Go being on track for its own General Availability release by the end of March; our strategic partner HCA Healthcare preparing to formally evaluate this version of Augmedix Go before a broad roll-out across its network of hospitals; the acceleration of our efforts to capture the growing medical documentation opportunity in front of us; our high confidence that our broad portfolio of products, including a high-performing automated documentation solution, that works effectively across ambulatory and acute care settings, structured data, a bi-directional communication channel to the point of care, and HITRUST certification, provide
Investors:
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Media:
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Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited, in thousands, except shares and key metrics) | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues | $ | 12,680 | $ | 8,751 | $ | 44,855 | $ | 30,933 | |||||||
Cost of revenues | 6,434 | 4,702 | 23,329 | 16,979 | |||||||||||
Gross profit | 6,246 | 4,049 | 21,526 | 13,954 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative | 4,906 | 4,538 | 18,442 | 16,893 | |||||||||||
Sales and marketing | 2,747 | 2,339 | 10,687 | 9,283 | |||||||||||
Research and development | 2,940 | 2,612 | 11,176 | 10,149 | |||||||||||
Total operating expenses | 10,593 | 9,489 | 40,305 | 36,325 | |||||||||||
Loss from operations | (4,347 | ) | (5,440 | ) | (18,779 | ) | (22,371 | ) | |||||||
Other income (expenses): | |||||||||||||||
Interest expense | (645 | ) | (373 | ) | (2,253 | ) | (1,675 | ) | |||||||
Interest income | 384 | 177 | 1,110 | 245 | |||||||||||
Loss on debt extinguishment | — | — | — | (1,097 | ) | ||||||||||
Change in fair value of warrant liability | — | — | (105 | ) | — | ||||||||||
Other | 93 | 108 | 1,001 | 560 | |||||||||||
Total other income (expenses), net | (168 | ) | (88 | ) | (247 | ) | (1,967 | ) | |||||||
Loss before income taxes | (4,515 | ) | (5,528 | ) | (19,026 | ) | (24,338 | ) | |||||||
Income tax expense (benefit) | (24 | ) | 71 | 145 | 111 | ||||||||||
Net loss | $ | (4,491 | ) | $ | (5,599 | ) | $ | (19,171 | ) | $ | (24,449 | ) | |||
Weighted average shares of common stock outstanding, basic and diluted | 49,021,095 | 37,435,000 | 43,946,263 | 37,418,463 | |||||||||||
Key Metrics: | |||||||||||||||
Average clinicians in service | 1,789 | 1,246 | 1,585 | 1,093 | |||||||||||
Average annual revenue per clinician | 28,200 | 27,500 | 28,100 | 27,900 | |||||||||||
Dollar-based net revenue retention | 152 % | 126 % | 148 % | 128 % |
Condensed Consolidated Balance Sheet | ||||||
(Unaudited, in thousands) | ||||||
2023 | 2022 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 46,217 | $ | 21,251 | ||
Restricted cash | 125 | 125 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 8,572 | 6,354 | ||||
Prepaid expenses and other current assets | 1,909 | 1,820 | ||||
Total current assets | 56,823 | 29,550 | ||||
Property and equipment, net | 3,739 | 1,573 | ||||
Operating lease right of use asset | 5,220 | 1,567 | ||||
Restricted cash, non-current | — | 612 | ||||
Deposits and other assets | 930 | 339 | ||||
Total assets | $ | 66,712 | $ | 33,641 | ||
Liabilities, and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Loan payable, current portion | $ | 5,000 | $ | 3,750 | ||
Accounts payable | 721 | 1,563 | ||||
Accrued expenses and other current liabilities | 6,589 | 5,321 | ||||
Deferred revenue | 8,963 | 7,254 | ||||
Operating lease liability, current portion | 1,494 | 872 | ||||
Customer deposits | 851 | 554 | ||||
Total current liabilities | 23,618 | 19,314 | ||||
Loan payable, net of current portion | 15,303 | 11,384 | ||||
Other liabilities | 421 | 509 | ||||
Operating lease liability, net of current portion | 4,049 | 968 | ||||
Total liabilities | $ | 43,391 | $ | 32,175 | ||
Total stockholders’ equity | 23,321 | 1,466 | ||||
Total liabilities and stockholders’ equity | $ | 66,712 | $ | 33,641 |
Condensed Consolidated Statement of Cash Flows | ||||||||
(Unaudited, in thousands) | ||||||||
Year Ended | ||||||||
2023 | 2022 | |||||||
Net cash used in operating activities | $ | (15,400 | ) | $ | (16,773 | ) | ||
Net cash used in investing activities | (3,146 | ) | (1,408 | ) | ||||
Net cash provided by (used in) financing activities | 43,370 | (1,237 | ) | |||||
Effect of exchange rate changes on cash and restricted cash | (470 | ) | (181 | ) | ||||
Net increase (decrease) in cash and restricted cash | 24,354 | (19,599 | ) | |||||
Cash and restricted cash at beginning of year | 21,988 | 41,587 | ||||||
Cash and restricted cash at end of year | $ | 46,342 | $ | 21,988 |
Reconciliation of GAAP to Non-GAAP Metrics | |||||||||||||||
(Unaudited, in thousands) | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||
Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||
Net loss | $ | (4,492 | ) | $ | (5,599 | ) | $ | (19,171 | ) | $ | (24,449 | ) | |||
Add: Other income (expense) , net | 169 | 89 | 247 | 1,967 | |||||||||||
Add: Depreciation | 306 | 249 | 1,098 | 856 | |||||||||||
Add: Share-based compensation | 736 | 720 | 2,471 | 2,112 | |||||||||||
Add: Income tax expense (benefit) | (24 | ) | 71 | 145 | 111 | ||||||||||
Total adjustments | 1,186 | 1,129 | 3,961 | 5,045 | |||||||||||
Adjusted EBITDA | $ | (3,306 | ) | $ | (4,470 | ) | $ | (15,210 | ) | $ | (19,404 | ) | |||
Adjusted Operating Expenses: | |||||||||||||||
Total operating expenses | $ | 10,593 | $ | 9,489 | $ | 40,305 | $ | 36,325 | |||||||
Less: Share-based compensation | 698 | 697 | 2,346 | 2,023 | |||||||||||
Adjusted operating expenses | $ | 9,895 | $ | 8,792 | $ | 37,959 | $ | 34,302 |
Source:
2024 GlobeNewswire, Inc., source