Akoya Biosciences Reports First Quarter 2024 Financial Results
May 13 2024 - 4:00PM
Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial
Biology Company®, today announced its financial results for the
first quarter ending March 31, 2024.
Business Highlights
- Revenue was $18.4 million in the
first quarter of 2024, compared to $21.4 million in the prior year
period; a decrease of 14%. Reagents and services revenue continued
to increase.
- Akoya announced the establishment of a new Manufacturing Center
of Excellence in Marlborough, Massachusetts to scale internal
reagent manufacturing to meet the accelerating demand for
reagents.
- Akoya’s partner Acrivon Therapeutics presented initial positive
Phase 2b clinical data for the ACR-368 therapeutic in patients
positive for the ACR-368 OncoSignature Assay in ovarian and
endometrial cancer, deployed on the PhenoImager HT platform.
- Akoya and NeraCare, a leading developer of laboratory tests for
the prognosis of melanoma patients, announced an exclusive
partnership to enable personalized therapy selection for
early-stage melanoma patients at high risk of relapse and
death.
- Akoya and Shanghai KR Pharmtech announced that the KR-HT5
instrument, based on the PhenoImager HT, has received premarket
approval from China’s National Medical Products Administration
(NMPA).
“While we made meaningful progress in advancing both our
operational and clinical objectives, our first quarter results fell
short of expectations due to three main factors. First, systemic
pressure on capital expenditures persisted. Second, certain
pharmaceutical partner lab services revenue were deferred to the
second half of 2024 due to revised clinical trial milestones.
Third, the completion and launch of our fully operational
Manufacturing Center of Excellence temporarily impacted reagent
fulfillment times, delaying instrument purchases,” said Brian
McKelligon, CEO of Akoya Biosciences. “With the industry’s leading
installed base, normalization of pharmaceutical partner revenue in
the second half of 2024, and now resolved reagent availability
issues, we believe that our foundational initiatives will lead us
back to strong top-line growth and achievement of our profitability
objectives.”
First Quarter 2024 Financial Results
- Revenue was $18.4 million in the
first quarter of 2024, compared to $21.4 million in the prior year
period; a decrease of 14%. Reagents and services revenue continued
to increase.
- For the first quarter of 2024,
reported gross margin was 46% while non-GAAP adjusted gross margin
was 57% when excluding the write off from discontinued legacy
instruments. Both GAAP and non-GAAP adjusted gross margin were 57%
for the first quarter of 2023.
- For the first quarter of 2024,
operating expenses were $30.0 million and non-GAAP operating
expenses were $25.6 million when excluding an impairment charge for
facility consolidation and restructuring associated with a
reduction in force in January. Both GAAP and non-GAAP operating
expenses were $29.7 million for the first quarter of 2023.
- For the first quarter of 2024,
loss from operations was $21.6 million and non-GAAP loss from
operations was $15.2 million, excluding the items noted above. Both
GAAP and non-GAAP loss from operations were $17.4 million for the
first quarter of 2023.
- Ended the quarter with an
instrument installed base of 1,213 (354 PhenoCyclers, 859
PhenoImagers), a year-over-year increase of 22% compared to an
installed base of 992 in the prior year period (273 PhenoCyclers,
719 PhenoImagers).
- 1,307 total publications citing
Akoya’s technology as of March 31, 2024, compared to 860 total
publications in the prior year period: an increase of 52%.
- $61.6 million of cash, cash equivalents and marketable
securities as of March 31, 2024.
2024 Financial Outlook
Akoya is updating its revenue outlook for the full year 2024
while maintaining its commitment to achieving operating cash flow
breakeven by year end. The Company now expects full year 2024
revenue to be in the range of $104.0-$112.0 million.
Webcast and Conference Call Details
Akoya will host a conference call today, May 13, 2024, at 5:00
p.m. Eastern Time to discuss its first quarter 2024 financial
results. Investors interested in listening to the conference call
are required to register online. A live webcast of the conference
call will be available on the “Investors” section of the Company's
website at https://investors.akoyabio.com/. The webcast will be
archived on the website following the completion of the call for
three months.
Non-GAAP Financial Measures
In addition to reporting financial measures in accordance with
generally accepted accounting principles (“GAAP”), Akoya is
including in this press release “non-GAAP adjusted gross profit,”
“non-GAAP adjusted gross margin,” “non-GAAP operating expense,” and
“non-GAAP loss from operations,” all of which are non-GAAP
financial measures. Akoya defines non-GAAP adjusted gross profit as
gross profit margin adjusted for certain excess and obsolete
inventory charges. Non-GAAP adjusted gross margin is defined as
non-GAAP adjusted gross profit divided by total revenue. Akoya
defines non-GAAP operating expense as operating expense adjusted
for impairment and restructuring charges. Akoya defines non-GAAP
loss from operations as loss from operations adjusted for certain
excess and obsolete inventory charges, impairment, and
restructuring charges.
Akoya includes these non-GAAP financial measures because it
believes they allow investors to understand and evaluate the
Company’s core operating performance and trends. In particular, the
exclusion of certain items in calculating non-GAAP adjusted gross
profit, non-GAAP adjusted gross margin, non-GAAP operating expense,
and non-GAAP loss from operations can provide useful measures for
period-to-period comparisons of the Company’s core business. These
non-GAAP financial measures have limitations as analytical tools,
including the fact that such non-GAAP financial measures may not be
comparable to similarly titled measures presented by other
companies because other companies may calculate non-GAAP adjusted
gross profit, non-GAAP adjusted gross margin, non-GAAP operating
expense, and non-GAAP loss from operations differently than Akoya
does. For more information regarding these non-GAAP financial
measures, see the tables included at the end of this press
release.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on management’s beliefs and assumptions and on information
currently available to management. All statements contained in this
release other than statements of historical fact are
forward-looking statements, including statements regarding our
expectations for full year 2024 revenue, our growth prospects, our
ability to achieve operating cash flow breakeven, projected timing
for achieving operating cash flow breakeven, our expectations
regarding our ability to market, sell and meet demand for our
products and services, our expectations regarding our current and
potential partnerships and collaborations, and other statements
regarding our business strategies, use of capital, results of
operations, financial and operational performance and plans and
objectives for future operations.
In some cases, you can identify forward-looking statements by
the words “may,” “will,” “could,” “would,” “should,” “expect,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“project,” “potential,” “continue,” “ongoing” or the negative of
these terms or other comparable terminology, although not all
forward-looking statements contain these words. These statements
involve risks, uncertainties and other factors that may cause
actual results, levels of activity, performance, or achievements to
be materially different from the information expressed or implied
by these forward-looking statements. These risks, uncertainties and
other factors are described under "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and elsewhere in the documents we file with the
Securities and Exchange Commission from time to time. We caution
you that forward-looking statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. As a result, the
forward-looking statements may not prove to be accurate. The
forward-looking statements in this press release represent our
views as of the date hereof. We undertake no obligation to update
any forward-looking statements for any reason, except as required
by law.
About Akoya Biosciences
As The Spatial Biology Company®, Akoya Biosciences’ mission is
to bring context to the world of biology and human health through
the power of spatial phenotyping. The Company offers comprehensive
single-cell imaging solutions that allow researchers to phenotype
cells with spatial context and visualize how they organize and
interact to influence disease progression and response to therapy.
Akoya offers a full continuum of spatial phenotyping solutions to
serve the diverse needs of researchers across discovery,
translational and clinical research: PhenoCode™ Panels and
PhenoCycler®, PhenoImager® Fusion and PhenoImager HT Instruments.
To learn more about Akoya, visit www.akoyabio.com.
Investor Contact:
Priyam Shahinvestors@akoyabio.com
Media Contact:
Christine Quernmedia@akoyabio.com
|
AKOYA BIOSCIENCES, INC. AND
SUBSIDIARYCondensed Consolidated Balance
Sheets (unaudited)(in
thousands) |
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,039 |
|
|
$ |
83,125 |
|
Marketable securities |
|
|
48,536 |
|
|
|
— |
|
Accounts receivable, net |
|
|
13,473 |
|
|
|
16,994 |
|
Inventories, net |
|
|
22,988 |
|
|
|
17,877 |
|
Prepaid expenses and other current assets |
|
|
3,793 |
|
|
|
3,794 |
|
Total current assets |
|
|
101,829 |
|
|
|
121,790 |
|
Property and equipment,
net |
|
|
8,964 |
|
|
|
10,729 |
|
Demo inventory, net |
|
|
726 |
|
|
|
893 |
|
Intangible assets, net |
|
|
16,699 |
|
|
|
17,412 |
|
Goodwill |
|
|
18,262 |
|
|
|
18,262 |
|
Operating lease right of use
assets, net |
|
|
5,568 |
|
|
|
8,365 |
|
Financing lease right of use
assets, net |
|
|
1,348 |
|
|
|
1,562 |
|
Other non-current assets |
|
|
1,354 |
|
|
|
1,356 |
|
Total assets |
|
$ |
154,750 |
|
|
$ |
180,369 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other current
liabilities |
|
$ |
23,209 |
|
|
$ |
25,209 |
|
Current portion of operating lease liabilities |
|
|
2,654 |
|
|
|
2,681 |
|
Current portion of financing lease liabilities |
|
|
718 |
|
|
|
767 |
|
Deferred revenue |
|
|
6,612 |
|
|
|
6,688 |
|
Total current liabilities |
|
|
33,193 |
|
|
|
35,345 |
|
Deferred revenue, net of
current portion |
|
|
2,928 |
|
|
|
3,193 |
|
Long-term debt, net |
|
|
75,469 |
|
|
|
75,254 |
|
Contingent consideration
liability, net of current portion |
|
|
4,015 |
|
|
|
5,765 |
|
Operating lease liabilities,
net of current portion |
|
|
5,713 |
|
|
|
6,238 |
|
Financing lease liabilities,
net of current portion |
|
|
634 |
|
|
|
766 |
|
Other long-term
liabilities |
|
|
75 |
|
|
|
38 |
|
Total liabilities |
|
|
122,027 |
|
|
|
126,599 |
|
Total stockholders'
equity |
|
|
32,723 |
|
|
|
53,770 |
|
Total liabilities and
stockholders' equity |
|
$ |
154,750 |
|
|
$ |
180,369 |
|
|
AKOYA BIOSCIENCES, INC. AND
SUBSIDIARYConsolidated Statements of
Operations (unaudited)(in
thousands, except share and per share amounts) |
|
|
|
Three months ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
Product revenue |
|
$ |
12,140 |
|
|
$ |
15,524 |
|
Service and other revenue |
|
|
6,210 |
|
|
|
5,886 |
|
Total revenue |
|
|
18,350 |
|
|
|
21,410 |
|
Cost of goods sold: |
|
|
|
|
|
|
Cost of product revenue |
|
|
6,723 |
|
|
|
5,751 |
|
Cost of service and other revenue |
|
|
3,248 |
|
|
|
3,366 |
|
Total cost of goods sold |
|
|
9,971 |
|
|
|
9,117 |
|
Gross profit |
|
|
8,379 |
|
|
|
12,293 |
|
Operating expenses: |
|
|
|
|
|
|
Selling, general and administrative |
|
|
19,863 |
|
|
|
23,124 |
|
Research and development |
|
|
5,554 |
|
|
|
6,378 |
|
Change in fair value of contingent consideration |
|
|
179 |
|
|
|
227 |
|
Impairment |
|
|
2,971 |
|
|
|
— |
|
Restructuring |
|
|
1,397 |
|
|
|
— |
|
Total operating expenses |
|
|
29,964 |
|
|
|
29,729 |
|
Loss from operations |
|
|
(21,585 |
) |
|
|
(17,436 |
) |
Other income (expense): |
|
|
|
|
|
|
Interest expense |
|
|
(2,612 |
) |
|
|
(2,054 |
) |
Interest income |
|
|
937 |
|
|
|
765 |
|
Other expense, net |
|
|
(161 |
) |
|
|
(48 |
) |
Loss before provision for
income taxes |
|
|
(23,421 |
) |
|
|
(18,773 |
) |
Provision for income
taxes |
|
|
(63 |
) |
|
|
(29 |
) |
Net loss |
|
$ |
(23,484 |
) |
|
$ |
(18,802 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.48 |
) |
|
$ |
(0.49 |
) |
Weighted-average shares
outstanding, basic and diluted |
|
|
49,188,170 |
|
|
|
38,326,024 |
|
|
AKOYA BIOSCIENCES, INC. AND
SUBSIDIARYGross Profit to Non-GAAP Adjusted Gross
Profit Reconciliation and Calculation of Gross Margin and Non-GAAP
Adjusted Gross Margin
(unaudited)(in thousands) |
|
|
|
Three months ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
|
2023 |
|
Total revenue |
|
$ |
18,350 |
|
|
$ |
21,410 |
|
|
|
|
|
|
|
|
Gross profit |
|
|
8,379 |
|
|
|
12,293 |
|
Provision for excess and
obsolete inventories - product discontinuation and lease exit
inventory charges |
|
|
2,045 |
|
|
|
— |
|
Non-GAAP adjusted gross
profit |
|
$ |
10,424 |
|
|
$ |
12,293 |
|
|
|
|
|
|
|
|
Gross margin |
|
|
46% |
|
|
|
57% |
|
|
|
|
|
|
|
|
Non-GAAP adjusted gross
margin |
|
|
57% |
|
|
|
57% |
|
|
AKOYA BIOSCIENCES, INC. AND
SUBSIDIARYOperating Expense to Non-GAAP Operating
Expense Reconciliation
(unaudited)(in thousands) |
|
|
|
Three months ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
|
2023 |
Operating expenses |
|
$ |
29,964 |
|
|
$ |
29,729 |
|
Impairment |
|
|
(2,971 |
) |
|
|
— |
|
Restructuring |
|
|
(1,397 |
) |
|
|
— |
|
Non-GAAP operating
expenses |
|
$ |
25,596 |
|
|
$ |
29,729 |
|
|
AKOYA BIOSCIENCES, INC. AND SUBSIDIARYLoss
From Operations to Non-GAAP Loss From Operations
Reconciliation (unaudited)(in
thousands) |
|
|
|
Three months ended |
|
|
March 31, |
|
March 31, |
|
|
2024 |
|
|
2023 |
|
Loss from operations |
|
$ |
(21,585 |
) |
|
$ |
(17,436 |
) |
Provision for excess and
obsolete inventories - product discontinuation and lease exit
inventory charges |
|
|
2,045 |
|
|
|
— |
|
Impairment |
|
|
2,971 |
|
|
|
— |
|
Restructuring |
|
|
1,397 |
|
|
|
— |
|
Non-GAAP loss from
operations |
|
$ |
(15,172 |
) |
|
$ |
(17,436 |
) |
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