Accelerate Diagnostics (AXDX) Q2 2024 earnings summary

Executive summary

• Announced successful preclinical trial results for the Wave antimicrobial susceptibility testing (AST) platform, achieving key clinical performance milestones and operational readiness for clinical trials.

• Net sales for Q2 2024 were $3.0 million, up 2% year-over-year, driven by higher consumable sales.

• Net loss for Q2 2024 was $11.6 million, or $0.50 per share, a significant improvement from $32.7 million in Q2 2023.

• Gross margin declined to 23% from 27% year-over-year due to product mix and higher manufacturing costs.

• Secured $15 million in additional funding from existing noteholders, expected to fund operations through 2025.

Financial highlights

• Q2 2024 net sales: $3.0 million (+2% YoY); H1 2024 net sales: $5.9 million (+3% YoY).

• Gross margin for Q2 2024: 23%; year-to-date: 24%.

• SG&A expenses decreased to $5.4 million from $7.6 million year-over-year; R&D expenses dropped to $3.9 million from $5.8 million.

• Net loss for Q2 2024: $11.6 million; H1 2024 net loss: $25.8 million (improved from $49.5 million in H1 2023).

• Ended Q2 with $9.7 million in cash and equivalents, down from $15.8 million at the start of the quarter.

Outlook and guidance

• Additional $15 million in funding is anticipated to support operations through 2025 and advance Wave strategic milestones.

• Management states current funding is insufficient to support operations for 12 months; additional capital is required.

• Clinical trial for Wave is imminent, with all systems installed and materials prepared at four external sites.

• FDA clearance for Accelerate Arc Products is anticipated by end of 2024; U.S. commercialization on hold pending approval.

• Management expects continued investment in new product development and commercialization efforts.