“Augmedix delivered in-line first quarter performance, with 40% revenue growth, 143% net revenue retention and 47.1% gross margins,” commented Manny Krakaris,
“We are seeing an increasing amount of interest with new and existing customers that are evaluating our AI products, Augmedix Go and Augmedix Go Assist, including active discussions for large deployments. In particular, the recently introduced ER version is resonating with health systems as it is the first fully-automated, generative AI powered medical documentation product for acute care. Augmedix Go Assist is quickly becoming a compelling solution given its attractive mix of price and efficiency. Meanwhile, following a successful pilot, our strategic partner HCA Healthcare is planning to expand Augmedix Go to additional emergency departments within its health system."
“At the same time, we have observed a slow-down in purchasing commitments by some providers as they evaluate the many AI offerings currently available. Based on current expectations, we now believe it is prudent to adjust our full year revenue outlook to reflect these developments that have arisen since the last earnings call,” continued Krakaris. “We are continuing to sell cohorts of new Live users, although not at the level that we had previously expected, while providers evaluate various AI offerings, including our own. A couple of our health systems have chosen to transition some of their Augmedix Live users to Augmedix Go Assist, reducing the near-term revenue expectations at these accounts. While the transition from our established Live product to our AI-based solutions, Augmedix Go and Augmedix Go Assist, may result in slower short-term revenue growth given the lower APRU of our AI products, we welcome this transition as it exposes us to a much larger segment of the market. We expect this will ultimately result in robust revenue growth going forward that is generated from products with inherently higher gross margins than our established Live product.”
Concluded Krakaris, “Our strategic positioning has always been to meet customers where they are today and where they want to be in the future. For this reason, we offer health systems the most comprehensive portfolio of products in the industry, giving unrivaled flexibility and value to users, that allow customers to select the optimal solution based on the clinician and the encounter. The market is trying to balance the need for medical note accuracy and completeness against cost-effective optimization. We believe offering solutions that span this spectrum is the winning approach at this juncture of AI’s evolution. This is being validated, in fact, by the strong early interest in our AI-based products.
Three Months Ended | ||||||||||
Financial Highlights: | 2024 | 2023 | Change | |||||||
Revenues | 40% | |||||||||
Gross profit | 45% | |||||||||
Gross margin | 47.1% | 45.6% | 150 bps | |||||||
Net loss | (24)% | |||||||||
Loss per share | 14% | |||||||||
Adjusted EBITDA (non-GAAP) | (19)% | |||||||||
First Quarter 2024 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended
- Total revenue was
$13.5 million , an increase of 40% compared to$9.6 million . - Dollar-based Net Revenue Retention was 143% for our Health Enterprise customers compared to 136%.
- Gross Profit increased 45% to
$6.3 million from$4.4 million . - Gross Margin increased 150 basis points to 47.1% compared to 45.6%.
- Operating Expenses were
$12.7 million compared to$9.5 million . Adjusted operating expenses, a Non-GAAP metric, increased 32% to$11.9 million compared to$9.0 million . - Net loss was
$6.5 million compared to$5.2 million . - Adjusted EBITDA loss, a Non-GAAP metric, was
$5.1 million compared to$4.3 million . - Operating cash burn was
$8.2 million compared to$6.2 million . - Cash and cash equivalents, as of
March 31, 2024 , was$37.3 million compared to$19.9 million as ofMarch 31, 2023 . - Common shares and pre-funded warrants outstanding as of
March 31, 2024 were 53,146,326. 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$2.22 per share would add another approximately 2.3 million common shares.
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 our current outlook,
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. At this time clinicians in service does not include clinicians using Augmedix Go.
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: 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 full-year revenue guidance for 2024; our confidence about our positioning within the medical documentation market, and our expectation to report continued growth throughout the rest of the year; Go Assist quickly becoming a compelling solution; HCA Healthcare’s plans to expand Augmedix Go to additional emergency departments within its health system; our observation of a slow-down in purchasing commitments by some providers; the transition by customers from our Live product to our AI-based solutions exposing us to a much larger segment of the market that will ultimately result in robust revenue growth going forward that is generated from products with inherently higher gross margins than our Live product; our offering to health systems the most comprehensive portfolio of products in the industry, giving unrivaled flexibility and value to users; the market trying to balance the need for medical note accuracy and completeness against cost-effective optimization and our belief that our offering solutions that span this spectrum are the winning approach at this juncture of AI’s evolution; the strong early interest in our AI-based products; and
Investors:
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Condensed Consolidated Statements of Operations (Unaudited, in thousands, except shares and key metrics) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 13,471 | $ | 9,628 | ||||
Cost of revenues | 7,130 | 5,242 | ||||||
Gross profit | 6,341 | 4,386 | ||||||
Operating expenses: | ||||||||
General and administrative | 5,347 | 4,207 | ||||||
Sales and marketing | 3,563 | 2,563 | ||||||
Research and development | 3,833 | 2,710 | ||||||
Total operating expenses | 12,743 | 9,480 | ||||||
Loss from operations | (6,402 | ) | (5,094 | ) | ||||
Other income (expenses): | ||||||||
Interest expense | (616 | ) | (408 | ) | ||||
Interest income | 503 | 162 | ||||||
Other | (64 | ) | 134 | |||||
Total other income (expenses), net | (177 | ) | (112 | ) | ||||
Net loss before income taxes | (6,579 | ) | (5,206 | ) | ||||
Income tax expense (benefit) | (80 | ) | 33 | |||||
Net loss | $ | (6,499 | ) | $ | (5,239 | ) | ||
Weighted average shares of common stock outstanding, basic and diluted | 53,058,667 | 37,491,072 | ||||||
Key Metrics: | ||||||||
Average clinicians in service | 1,862 | 1,371 | ||||||
Average annual revenue per clinician | $ | 28,700 | $ | 27,800 | ||||
Dollar-based net revenue retention rate | 143 | % | 136 | % | ||||
Condensed Consolidated Balance Sheet (Unaudited, in thousands) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 37,301 | $ | 46,217 | ||||
Restricted cash | 125 | 125 | ||||||
Accounts receivable, net of allowance for credit losses of | 9,979 | 8,572 | ||||||
Prepaid expenses and other current assets | 2,568 | 1,909 | ||||||
Total current assets | 49,973 | 56,823 | ||||||
Property and equipment, net | 3,597 | 3,739 | ||||||
Operating lease right of use asset | 4,918 | 5,220 | ||||||
Restricted cash, non-current | 209 | — | ||||||
Deposits and other assets | 859 | 930 | ||||||
Total assets | $ | 59,556 | $ | 66,712 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,245 | $ | 721 | ||||
Accrued expenses and other current liabilities | 4,429 | 6,589 | ||||||
Deferred revenue | 9,014 | 8,963 | ||||||
Customer deposits | 851 | 851 | ||||||
Operating lease liability, current portion | 1,487 | 1,494 | ||||||
Loan payable, current portion | 7,500 | 5,000 | ||||||
Total current liabilities | 24,526 | 23,618 | ||||||
Operating lease liability, net of current portion | 3,751 | 4,049 | ||||||
Loan payable, net of current portion | 12,952 | 15,303 | ||||||
Other liabilities | 548 | 421 | ||||||
Total liabilities | 41,777 | 43,391 | ||||||
Total stockholders' equity | 17,779 | 23,321 | ||||||
Total liabilities and stockholders' equity | $ | 59,556 | $ | 66,712 | ||||
Condensed Consolidated Statement of Cash Flows (Unaudited, in thousands) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net cash used in operating activities | $ | (8,236 | ) | $ | (6,221 | ) | ||
Net cash used in investing activities | (542 | ) | (173 | ) | ||||
Net cash provided by financing activities | 59 | 5,085 | ||||||
Effect of exchange rate changes on cash and restricted cash | 12 | (40 | ) | |||||
Net decrease in cash and restricted cash | (8,707 | ) | (1,349 | ) | ||||
Cash and restricted cash at beginning of year | 46,342 | 21,988 | ||||||
Cash and restricted cash at end of year | $ | 37,635 | $ | 20,639 | ||||
Reconciliation of GAAP to Non-GAAP Metrics (Unaudited, in thousands) | ||||||||
Three Months Ended | ||||||||
Adjusted EBITDA: | 2024 | 2023 | ||||||
Net loss | $ | (6,499 | ) | $ | (5,239 | ) | ||
Add: Other income (expense) , net | (177 | ) | (112 | ) | ||||
Add: Depreciation | 439 | 279 | ||||||
Add: Share-based compensation | 885 | 533 | ||||||
Add: Income tax expense (benefit) | (80 | ) | 33 | |||||
Total adjustments | 1,421 | 957 | ||||||
Adjusted EBITDA | $ | (5,078 | ) | $ | (4,282 | ) | ||
Adjusted Operating Expenses: | ||||||||
Total operating expenses | $ | 12,743 | $ | 9,480 | ||||
Less: Share-based compensation | 844 | 507 | ||||||
Adjusted operating expenses | $ | 11,899 | $ | 8,973 | ||||
Source:
2024 GlobeNewswire, Inc., source