Exagen (XGN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $15.1 million, up 6.6% year-over-year, driven by higher ASPs and increased test volumes, despite a 13% decline in AVISE CTD test volume.

• Adjusted EBITDA loss improved 53% year-over-year to $1.6 million, marking the best quarterly financial performance to date.

• Net loss for Q2 2024 was $3.0 million, a 40% improvement from the prior year.

• Company is on track for profitability, with significant margin expansion and operational improvements over the past 18 months.

• AVISE CTD remains the core product, accounting for 90% of revenue in the first half of 2024.

Financial highlights

• Gross margin rose to 60.1% in Q2 2024 from 58.7% in Q2 2023, primarily due to ASP increases.

• Operating expenses (excluding COGS) decreased to $11.6 million from $13.2 million year-over-year, mainly from lower legal fees and stock-based compensation.

• Cash and cash equivalents stood at $24.5 million as of June 30, 2024; accounts receivable were $11.7 million.

• Net cash used in operating activities for H1 2024 was $11.5 million, down from $19.9 million in H1 2023.

• Net loss per share was $0.16 in Q2 2024, compared to $0.28 in Q2 2023.

Outlook and guidance

• Full-year 2024 revenue guidance raised to at least $57 million.

• Adjusted EBITDA loss for the year expected to be better than $12 million, a dramatic improvement from previous expectations.

• Management expects continued operating losses in the near term but anticipates positive cash flow within a year of launching new biomarkers, assuming incremental increases in ASP.

• Existing cash and anticipated revenue are expected to fund operations for at least the next 12 months.

• Seasonality expected to result in flat or slightly declining volumes in Q3 and Q4, with growth resuming in 2025.