“The third quarter marked another period of strong progress for
Continued Mr. Krakaris, “We are delivering strong financial results while expanding our product portfolio and building out the foundations of our data and platform strategies. We recently launched early access to Augmedix Go, our fully automated scalable AI medical documentation solution, and we continue to collaborate closely with HCA Healthcare to launch Augmedix Go for the emergency room setting. We have also forged strategic relationships with three innovative digital health companies as part of our open network and platform strategy. These vendor partners will be able to use our delivery platform through application programming interfaces (APIs) so that they and our health system partners can efficiently benefit and generate incremental ROI from our structured data and bi-directional communication channel to the point of care.”
“It is clearer than ever that there is a tremendous opportunity in front of Augmedix,” concluded Mr. Krakaris. “As healthcare systems lean into our ambient medical documentation technology to reduce the burden on clinicians and enhance operating efficiency, they are increasingly looking to leverage our structured data for insights and our bi-directional communication channel to deliver vital information that can effectuate change at the point of care. We are confident that addressing these expanded upstream and downstream requirements will create greater value for our customers and ultimately, our shareholders.”
Third Quarter 2023 Financial and Business Highlights
All comparisons, unless otherwise noted, are to the three months ended
- Total revenue was
$11.8 million , an increase of 50% compared to$7.9 million . - Dollar-based Net Revenue Retention was 157% for Health Enterprise customers compared to 130% in the third quarter of 2022 and 148% in the second quarter of 2023.
- Average Clinicians in Service grew 47%.
- GAAP Gross Margin increased 390 basis points to 49.5% compared to 45.7%.
- GAAP Operating Expenses were
$10.2 million , compared to$9.0 million in the third quarter of 2022 and$10.0 million in the second quarter of 2023. - GAAP Net Loss narrowed to
$4.4 million compared to$5.5 million . - EBITDA losses declined to
$3.7 million compared to$5.0 million . Adjusted EBITDA losses declined to$3.1 million compared to$4.5 million , which excludes stock-based compensation in both periods. Adjusted EBITDA losses again declined sequentially from$3.6 million in the second quarter of 2023. - Cash, cash equivalents, and restricted cash were
$22.3 million as ofSeptember 30, 2023 , compared to$22.0 million as ofDecember 31, 2022 . - The interest only period on our
$20 million term loan with SVB was lengthened fromJanuary 2024 toJuly 2024 as we exceeded the financial requirements for extension during the third quarter. - Launched the early access release of Augmedix Go for the clinical setting, a clinician-controlled mobile app that uses generative AI to create a fully automated draft medical note instantaneously.
- Established strategic collaborations with three innovative digital health companies – Myndshft,
Ellipsis Health , andThe Sullivan Group – to enhance healthcare enterprise efficiency and patient outcomes. - Hosted the initial
AI Advisory Council meeting with distinguished academics, governance experts, and customers to provide strategic guidance on Augmedix’s product roadmap on the development and use of AI. - Enhanced collaboration with HCA Healthcare and
Google Cloud to bring generative AI to hospitals. - Achieved certified status by HITRUST for information security, which validates Augmedix’s commitment to safeguarding sensitive patient information data.
Non-GAAP operating expenses, EBITDA and Adjusted EBITDA are a Non-GAAP financial measure. Please see “Non-GAAP Financial Measures” below and the Reconciliation of the GAAP to Non-GAAP Financial Measures table below.
2023 Revenue Guidance
Conference Call
Definition of Key Metrics
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
Clinicians in Service: We define a clinician in service as an individual doctor, nurse practitioner or other healthcare professional using our services. 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 number of clinicians in service is an indicator of the performance of our business as it demonstrates our ability to penetrate the market and grow our business.
About
Augmedix’s products relieve clinicians of administrative burden, in turn, reducing burnout, increasing clinician efficiency and improving patient access. Through Augmedix’s proprietary platform and bi-directional communication channel,
Contact Information
Investors:
FNK IR
(646) 809-2183
augx@fnkir.com
investors@augmedix.com
Media:
pr@augmedix.com
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: Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP Operating Expenses, EBITDA, 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 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 referring to 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 Financial Measures 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," “excited,” “optimistic,” 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 Company’s expectations regarding revenues for the full fiscal year 2023 and the achievement of its financial goals; the ability of the Company’s vendor and health system partners to efficiently benefit from, and generate incremental ROI through the use of, the Company’s structured data and bi-directional communication channel to the point of care; the tremendous opportunity in front of
Condensed Consolidated Statements of Operations
(Unaudited, in thousands except EPS and Average Clinicians in Service)
Three Months Ended | ||||||
(unaudited) | ||||||
2023 | 2022 | |||||
Revenue | $ | 11,767 | $ | 7,864 | ||
Cost of revenue | 5,937 | 4,274 | ||||
Gross profit | 5,830 | 3,590 | ||||
Operating Expenses | ||||||
General and administrative | 4,568 | 4,136 | ||||
Sales and marketing | 2,729 | 2,304 | ||||
Research and development | 2,936 | 2,608 | ||||
Total operating expenses | 10,233 | 9,048 | ||||
Loss from operations | (4,403 | ) | (5,458 | ) | ||
Other income (expense), net | (4 | ) | (32 | ) | ||
Net loss | $ | (4,407 | ) | $ | (5,490 | ) |
Weighted average common stock outstanding | 45,521 | 37,427 | ||||
Earnings Per Share | $ | (0.10 | ) | $ | (0.15 | ) |
Average Clinicians in Service (CIS) | 1,650 | 1,121 | ||||
Condensed Consolidated Balance Sheet
(Unaudited, in thousands)
2023 | 2022 | |||
Assets | ||||
Cash, cash equivalents, and restricted cash | $ | 22,286 | $ | 21,988 |
Accounts receivables, net | 9,446 | 6,354 | ||
Other assets | 9,101 | 5,299 | ||
Total assets | 40,833 | 33,641 | ||
Liabilities & Stockholders’ Equity | ||||
Liabilities | ||||
Accounts payable | $ | 1,816 | $ | 1,563 |
Deferred revenue | 7,993 | 7,254 | ||
Loan payable | 20,108 | 15,134 | ||
Other liabilities | 10,182 | 8,224 | ||
Total liabilities | $ | 40,099 | $ | 32,175 |
Stockholders’ equity | $ | 734 | $ | 1,466 |
Total liabilities & stockholders’ equity | $ | 40,833 | $ | 33,641 |
Condensed Consolidated Statement of Cash Flows
(Unaudited, in thousands)
Nine Months Ended | ||||||
2023 | 2022 | |||||
Cash flows from operating activities | $ | (14,468 | ) | $ | (12,387 | ) |
Cash flows from investing activities | (1,912 | ) | (816 | ) | ||
Cash flows from financing activities | 16,989 | (1,244 | ) | |||
Effect of exchange rate changes on cash and restricted cash | (311 | ) | (143 | ) | ||
Net decrease in cash | $ | 298 | $ | (14,590 | ) | |
Cash, restricted cash, and cash equivalents at the beginning of the period | $ | 21,988 | $ | 41,587 | ||
Cash, restricted cash, and cash equivalents at the end of the period | $ | 22,286 | $ | 26,997 | ||
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited, in thousands)
Three Months Ended | ||||||
(unaudited) | ||||||
Stock Based Compensation Expense | 2023 | 2022 | ||||
Cost of revenue | $ | 33 | $ | 22 | ||
General and administrative | 425 | 320 | ||||
Sales and marketing | 57 | 50 | ||||
Research and development | 122 | 85 | ||||
Total stock-based compensation expense | $ | 637 | $ | 477 | ||
Net loss | $ | (4,407 | ) | $ | (5,490 | ) |
Interest | 355 | 257 | ||||
Tax | 84 | 19 | ||||
Depreciation | 252 | 217 | ||||
EBITDA | $ | (3,716 | ) | $ | (4,997 | ) |
Add: Stock-based compensation | 637 | 477 | ||||
Adjusted EBITDA | $ | (3,079 | ) | $ | (4,520 | ) |
GAAP Cost of revenue | $ | 5,937 | $ | 4,274 | ||
Less: Stock-based compensation | 33 | 22 | ||||
Non-GAAP cost of revenue | $ | 5,904 | $ | 4,252 | ||
Non-GAAP Gross Profit | $ | 5,863 | $ | 3,612 | ||
Non-GAAP Gross Margin | 49.8 | % | 45.9 | % | ||
GAAP Operating expenses | $ | 10,233 | $ | 9,048 | ||
Less: Stock-based compensation | 604 | 455 | ||||
Non-GAAP operating expenses | $ | 9,629 | $ | 8,593 | ||
Source:
2023 GlobeNewswire, Inc., source