Exagen (XGN) Q4 2023 earnings summary

Executive summary

• FY 2023 delivered record revenue of $52.5M and 137,650 AVISE CTD tests; gross margin improved to 56.1% from 46.9% in 2022.

• FY net loss narrowed to $23.7M from $47.4M; adjusted EBITDA loss improved to $17.1M from $39.8M.

Financial highlights

• Q4 2023 revenue was $13.8M vs. $12.8M YoY; gross margin was 59.2% vs. 50.9%.

• Q4 operating expenses fell to $18.9M from $27.3M, reflecting lower personnel costs, SG&A and R&D expenses.

• Q4 net loss was $5.6M vs. $14.4M; adjusted EBITDA loss was $3.9M vs. $13.4M.

• FY operating expenses declined to $75.4M from $91.6M; net loss was $23.7M vs. $47.4M.

Outlook and guidance

• FY 2024 revenue guidance is approximately $54M; Q1 2024 revenue guidance is $13.0M–$13.5M.

• FY 2024 adjusted EBITDA loss is expected to be better than $20M; existing cash is expected to cover anticipated requirements into 2026.