Acutus Medical (AFIB) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was $7.8 million, up 181% year-over-year, driven by increased sales of left-heart access products to Medtronic following a strategic shift to focus solely on this partnership.

• Q2 2024 revenue from continuing operations rose 172% year-over-year to $4.1 million, driven by left-heart access product sales.

• Net loss from continuing operations narrowed to $2.4 million from $8.5 million year-over-year; discontinued operations reported a net loss of $0.1 million versus $26.1 million in the prior year, reflecting the wind-down of mapping and ablation businesses.

• The company completed a major restructuring, reducing workforce by 65% and ceasing R&D, to focus exclusively on manufacturing for Medtronic and maximize contingent earnout payments.

• Nasdaq delisted the company’s common stock in May 2024; shares now trade on the OTC Pink Market under the symbol AFIB.

Financial highlights

• Gross margin improved to negative 8% in Q2 2024 from negative 67% in Q2 2023, reflecting manufacturing efficiencies.

• Operating expenses for Q2 2024 were negative $0.6 million, reflecting a $2.9 million gain on sale of business and no R&D expense post-restructuring.

• Net loss for Q2 2024 was $0.9 million, a significant improvement from $18.3 million in Q2 2023.

• Cash, cash equivalents, and marketable securities totaled $13.3 million as of June 30, 2024, down from $29.4 million at year-end 2023.

• Net cash used in operating activities from continuing operations was $13.2 million for the six months ended June 30, 2024.

Outlook and guidance

• Management expects to continue incurring losses for at least the next several years if restructuring benefits are not fully realized.

• The company’s future performance is highly dependent on Medtronic’s success in selling the left-heart access products and the achievement of related earnouts.

• No further financial guidance will be provided due to the strategic exit from electrophysiology mapping and ablation businesses.

• Restructuring is expected to reduce operating expenses and optimize cash resources, with the business now focused solely on manufacturing for Medtronic.