Exagen (XGN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $12.5M, including a $1.2M one-time negative adjustment; nine-month revenue rose 8.3% to $42.0M, driven by improved ASP despite lower test volumes.

• Net loss for Q3 2024 was $5.0M, with a nine-month net loss of $11.4M, a 40% improvement year-over-year.

• Gross margin for Q3 was 55.8% (59.7% excluding adjustments); nine-month gross margin improved to 58.7% from 54.9% in 2023.

• AVISE CTD test accounted for over 90% of revenue, with ASP rising to $404 per CTD test.

• New CFO Jeff Black joined in September 2024, contributing to financial oversight and operational improvements.

Financial highlights

• Q3 2024 revenue: $12.5M (down 6.8% year-over-year); nine-month revenue: $42.0M (up 8.3%).

• Q3 2024 net loss: $5.0M; nine-month net loss: $11.4M (improved from $18.1M in 2023).

• Q3 2024 gross margin: 55.8% (59.7% ex-adjustments); nine-month gross margin: 58.7%.

• Q3 2024 operating expenses: $17.2M (down 7.1% year-over-year); nine-month operating expenses: $52.2M (down 7.5%).

• Cash and equivalents at quarter-end: $22.0M; net cash burn in Q3: $2.5M.

Outlook and guidance

• Full-year 2024 revenue expected at $55M–$56M, reflecting Q3 adjustments.

• Adjusted EBITDA loss for 2024 expected to be better than $12M.

• Revenue growth projected at 5% over 2023 and 20% over 2022; adjusted EBITDA improvement of 30% over 2023 and 70% over 2022.

• Cash flow positivity targeted by end of 2025, with sufficient capital to reach this milestone.

• Run-rate revenue for profitability expected in the low-to-mid $70M range with 60%+ gross margin by end of 2025.