Beyond Air (XAIR) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 revenue reached $1.2 million, up from zero the prior year, with commercial momentum for LungFit PH and expanded customer base across 10 states.

• Over 50 US hospitals have used LungFit PH, treating more than 1,100 patients and delivering over 75,000 hours of therapy.

• All expiring contracts were renewed, and multi-year contracts more than doubled since the last call.

• Appointed David Webster as Chief Commercial Officer to drive commercial operations, starting July 8.

• Implemented capital conservation strategy, reducing headcount by over 20% and focusing resources on LungFit PH commercialization.

Financial highlights

• FY2024 revenue was $1.2 million; cost of revenue was $2.5 million, resulting in a gross margin loss.

• R&D expenses rose to $24.4 million from $16.8 million, mainly from increased trial and professional fees.

• SG&A expenses increased to $37.3 million from $34.7 million, primarily due to higher headcount.

• Net loss for FY2024 was $64.3 million ($1.82/share), compared to $59.4 million ($1.86/share) in FY2023.

• Cash, equivalents, and marketable securities totaled $34.5 million at March 31, 2024.

Outlook and guidance

• FY2025 revenue guidance revised to over $10 million, down from $12–16 million, due to milestone delays.

• Revenue growth expected to accelerate in Q1 FY2025, with majority of FY2025 revenue anticipated in the second half.

• Net cash burn rate projected to be under $30 million in FY2025, with further decline in FY2026 and cash flow breakeven targeted for Q4 FY2026.

• R&D spend to be reduced by over 20% year-over-year; SG&A to decrease by 5–10%.

• Operations expected to be funded through at least July 2025.