Biodesix Announces Fourth Quarter and Fiscal Year 2023 Results and Business Highlights
Persistent, high double-digit growth in Lung Diagnostic test volume - growing 65% in FY2023 versus FY2022 - and the sixth consecutive quarter with greater than 50% year-over-year growth;
Ongoing improvement in gross profit margin with achievement of 77% in fourth quarter 2023, up 11 points over fourth quarter 2022;
2024 Total Revenue Guidance of
Conference Call and Webcast Today at
“I am exceptionally proud of the
Fourth Quarter and Full Year 2023 Financial Results
-
Total revenue of
$14.7 million and$49.1 million for the fourth quarter and fiscal 2023, respectively, an increase of 52% and 49% over the respective prior year comparable periods excluding COVID testing revenues, and an increase of 53% and 28% over the respective prior year comparable periods including COVID testing revenues;-
Lung Diagnostic revenue of
$12.8 million and$45.1 million for the fourth quarter and fiscal 2023, respectively, an increase of 55% and 54% over the respective prior year comparable periods, primarily driven by the continued adoption of Nodify Lung® Nodule Risk Assessment tests; -
Biopharma Services and other revenue of
$1.9 million and$3.9 million for the fourth quarter and fiscal 2023, respectively, an increase of 38% and 6% over the respective prior year comparable periods, a result of both delivering against our expanding book of business and securing new agreements; entering 2024 with increasing dollars under contract;
-
Lung Diagnostic revenue of
-
Gross profit was
$11.3 million or 77% and$36.1 million or 73% for the fourth quarter and fiscal 2023, respectively, as a percentage of revenue compared to 66% and 63% in the prior year comparable periods, primarily driven by growth in Lung Diagnostic testing and optimization of testing workflows that resulted in improvements in costs per test, the ongoing recovery of our Biopharma Services business, and the commercial discontinuation of lower-margin COVID-19 testing; -
Operating expenses (excluding direct costs and expenses) of
$18.2 million and$77.4 million for the fourth quarter and fiscal 2023, a decrease of 10% and increase of 4% over the respective prior year comparable periods;- Decrease in fourth quarter 2023 is primarily attributable to a decrease in research and development costs, partially offset by increased sales and marketing costs to support Lung Diagnostic sales growth, enhance product awareness and drive adoption, while the full year increase in operating expenses was driven by an increase in sales and marketing costs, partially offset by a reduction in research and development costs;
-
Includes non-cash stock compensation expense of
$1.1 million and$5.4 million during fourth quarter and fiscal 2023, respectively, a decrease of 48% and 10% over the respective prior year comparable periods;
-
Net loss of
$9.1 million and$52.1 million for the fourth quarter and fiscal 2023, respectively, an improvement of 55% and 20% over the respective prior year comparable periods;-
Fourth quarter and fiscal 2023 included a gain of
$0.1 million and loss of$1.3 million , respectively, from the change in fair value of warrant liabilities associated with our term loan facility withPerceptive Advisors (Perceptive); -
Fourth quarter and fiscal 2022 included loss on debt extinguishment and modification of
$4.0 million and$7.0 million , respectively;
-
Fourth quarter and fiscal 2023 included a gain of
-
Adjusted EBITDA was a loss of
$4.9 million and$32.7 million for the fourth quarter and fiscal 2023, respectively, an improvement of 55% and 24% over the respective prior year comparable periods; -
Cash and cash equivalents of
$26.3 million as ofDecember 31, 2023 ;-
The Company successfully drew down the second tranche of
$10 million from its$50 million term loan facility with Perceptive in the fourth quarter of 2023; -
Cash balance includes the remaining
$12.2 million of the$27.5 million private placement announced inAugust 2023 .
-
The Company successfully drew down the second tranche of
2024 Financial Outlook
-
The Company anticipates generating between
$65 million to$68 million in total revenue in 2024, representing an approximate 32% to 39% year-over-year growth rate.
Conference call and webcast information
Listeners can register for the webcast via this link. Analysts wishing to participate in the question-and-answer session should use this link. A replay of the webcast will be available via the Company’s investor website approximately two hours after the call’s conclusion. Those who plan on participating are advised to join 15 minutes prior to the start time.
For a full list of
Use of Non-GAAP Financial Measure
Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of Net loss to Adjusted EBITDA, helps investors make comparisons between our Company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.
Adjusted EBITDA is used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures. Period-to-period comparisons of Adjusted EBITDA help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net loss or Loss from operations. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items and may not be directly comparable to similarly titled metrics used by other companies.
We calculate Adjusted EBITDA as Net loss adjusted to exclude interest, income tax expense, if any, depreciation and amortization, share-based compensation expense, loss on debt extinguishments, net, COVID-19 revenue, COVID-19 direct costs and expenses, change in fair value of warrant liabilities, net, other income, net, and other non-recurring items. Non-recurring items are excluded as they are not representative of our underlying operating performance. We also exclude revenue and direct costs and expenses associated with COVID-19 because we believe that these revenues and expenses do not reflect expected future operating results as they do not represent our Lung Diagnostic and Biopharma Services business. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for Loss from operations, Net loss, and other GAAP measures.
About
Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict,” “potential,” “opportunity,” “goals,” or “should,” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors.
Condensed Balance Sheets (unaudited) (in thousands, except share data) |
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Assets |
||||||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
26,284 |
|
|
$ |
43,088 |
|
Accounts receivable, net of allowance for doubtful accounts of |
|
|
7,679 |
|
|
|
5,065 |
|
Other current assets |
|
|
5,720 |
|
|
|
5,181 |
|
Total current assets |
|
|
39,683 |
|
|
|
53,334 |
|
Non‑current assets |
|
|
|
|
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Property and equipment, net |
|
|
27,867 |
|
|
|
5,848 |
|
Intangible assets, net |
|
|
7,911 |
|
|
|
9,797 |
|
Operating lease right-of-use assets |
|
|
1,745 |
|
|
|
2,973 |
|
|
|
|
15,031 |
|
|
|
15,031 |
|
Other long-term assets |
|
|
6,859 |
|
|
|
5,923 |
|
Total non‑current assets |
|
|
59,413 |
|
|
|
39,572 |
|
Total assets |
|
$ |
99,096 |
|
|
$ |
92,906 |
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
||||||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
|
$ |
2,929 |
|
|
$ |
1,685 |
|
Accrued liabilities |
|
|
7,710 |
|
|
|
8,218 |
|
Deferred revenue |
|
|
324 |
|
|
|
962 |
|
Current portion of operating lease liabilities |
|
|
252 |
|
|
|
1,543 |
|
Current portion of contingent consideration |
|
|
21,857 |
|
|
|
10,341 |
|
Current portion of notes payable |
|
|
51 |
|
|
|
49 |
|
Other current liabilities |
|
|
293 |
|
|
|
41 |
|
Total current liabilities |
|
|
33,416 |
|
|
|
22,839 |
|
Non‑current liabilities |
|
|
|
|
||||
Long‑term notes payable, net of current portion |
|
|
35,225 |
|
|
|
25,004 |
|
Long-term operating lease liabilities |
|
|
25,163 |
|
|
|
5,254 |
|
Contingent consideration |
|
|
— |
|
|
|
18,645 |
|
Other long-term liabilities |
|
|
712 |
|
|
|
558 |
|
Total non‑current liabilities |
|
|
61,100 |
|
|
|
49,461 |
|
Total liabilities |
|
|
94,516 |
|
|
|
72,300 |
|
Commitments and contingencies |
|
|
|
|
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Stockholders' equity |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
96 |
|
|
|
78 |
|
Additional paid‑in capital |
|
|
424,050 |
|
|
|
387,948 |
|
Accumulated deficit |
|
|
(419,566 |
) |
|
|
(367,420 |
) |
Total stockholders' equity |
|
|
4,580 |
|
|
|
20,606 |
|
Total liabilities and stockholders' equity |
|
$ |
99,096 |
|
|
$ |
92,906 |
|
Condensed Statements of Operations (unaudited) (in thousands, except per share data) |
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Three Months Ended |
|
Year Ended |
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|
2023 |
|
2022 |
|
2023 |
|
2022 |
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Revenues |
|
|
|
|
|
|
|
|
||||||||
Lung Diagnostic |
|
$ |
12,753 |
|
|
$ |
8,241 |
|
|
$ |
45,135 |
|
|
$ |
29,298 |
|
COVID-19 |
|
|
44 |
|
|
|
16 |
|
|
|
57 |
|
|
|
5,240 |
|
Diagnostic Testing revenue |
|
|
12,797 |
|
|
|
8,257 |
|
|
|
45,192 |
|
|
|
34,538 |
|
Biopharma Services and other revenue |
|
|
1,871 |
|
|
|
1,351 |
|
|
|
3,895 |
|
|
|
3,674 |
|
Total revenues |
|
|
14,668 |
|
|
|
9,608 |
|
|
|
49,087 |
|
|
|
38,212 |
|
Direct costs and expenses |
|
|
3,374 |
|
|
|
3,306 |
|
|
|
13,010 |
|
|
|
14,154 |
|
Research and development |
|
|
1,889 |
|
|
|
3,565 |
|
|
|
9,988 |
|
|
|
13,102 |
|
Sales, marketing, general and administrative |
|
|
16,251 |
|
|
|
16,626 |
|
|
|
67,387 |
|
|
|
61,462 |
|
Impairment loss on intangible assets |
|
|
24 |
|
|
|
— |
|
|
|
44 |
|
|
|
81 |
|
Total operating expenses |
|
|
21,538 |
|
|
|
23,497 |
|
|
|
90,429 |
|
|
|
88,799 |
|
Loss from operations |
|
|
(6,870 |
) |
|
|
(13,889 |
) |
|
|
(41,342 |
) |
|
|
(50,587 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(2,329 |
) |
|
|
(2,550 |
) |
|
|
(9,536 |
) |
|
|
(8,072 |
) |
Loss on debt extinguishments, net |
|
|
— |
|
|
|
(3,977 |
) |
|
|
— |
|
|
|
(6,981 |
) |
Change in fair value of warrant liability, net |
|
|
58 |
|
|
|
84 |
|
|
|
(1,274 |
) |
|
|
84 |
|
Other income, net |
|
|
2 |
|
|
|
(5 |
) |
|
|
6 |
|
|
|
109 |
|
Total other expense |
|
|
(2,269 |
) |
|
|
(6,448 |
) |
|
|
(10,804 |
) |
|
|
(14,860 |
) |
|
|
|
|
|
|
|
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|
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Net loss |
|
$ |
(9,139 |
) |
|
$ |
(20,337 |
) |
|
$ |
(52,146 |
) |
|
$ |
(65,447 |
) |
Net loss per share, basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.55 |
) |
Weighted-average shares outstanding, basic and diluted |
|
|
92,325 |
|
|
|
57,805 |
|
|
|
82,113 |
|
|
|
42,103 |
|
Reconciliation of Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
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|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
|
$ |
(9,139 |
) |
|
$ |
(20,337 |
) |
|
$ |
(52,146 |
) |
|
$ |
(65,447 |
) |
Interest expense |
|
|
2,329 |
|
|
|
2,550 |
|
|
|
9,536 |
|
|
|
8,072 |
|
Depreciation and amortization |
|
|
977 |
|
|
|
898 |
|
|
|
3,328 |
|
|
|
3,597 |
|
Share-based compensation expense |
|
|
1,081 |
|
|
|
2,077 |
|
|
|
5,373 |
|
|
|
5,961 |
|
Loss on debt extinguishments, net |
|
|
— |
|
|
|
3,977 |
|
|
|
— |
|
|
|
6,981 |
|
COVID-19 Revenue |
|
|
(44 |
) |
|
|
(16 |
) |
|
|
(57 |
) |
|
|
(5,240 |
) |
COVID-19 Direct costs and expenses |
|
|
— |
|
|
|
95 |
|
|
|
1 |
|
|
|
3,109 |
|
Change in fair value of warrant liability, net |
|
|
(58 |
) |
|
|
(84 |
) |
|
|
1,274 |
|
|
|
(84 |
) |
Other income, net |
|
|
(2 |
) |
|
|
5 |
|
|
|
(6 |
) |
|
|
(109 |
) |
Adjusted EBITDA |
|
$ |
(4,856 |
) |
|
$ |
(10,835 |
) |
|
$ |
(32,697 |
) |
|
$ |
(43,160 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240301670433/en/
Media:
Director, Corporate Communications
[email protected]
(720) 925-9285
Investors:
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(339) 970-2843
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