Augmedix Delivers 45% Revenue Growth and Expanded Gross Margins for Fourth Quarter of 2023
- Revenue surged by 45% to $12.7 million in Q4 and $44.9 million for the full year 2023.
- Gross profit saw a significant increase of 54% to $6.2 million in Q4 and $21.5 million for the full year 2023.
- Net loss decreased by 20% to $4.5 million in Q4 and 22% to $19.2 million for the full year 2023.
- Adjusted EBITDA loss improved by 26% to $3.3 million in Q4 and 22% to $15.2 million for the full year 2023.
- Cash and cash equivalents as of December 31, 2023, stood at $46.2 million, reflecting a solid financial position.
- Augmedix expects to generate approximately $60 to $62 million of revenue in 2024, highlighting positive growth expectations.
- The company's strategic partner HCA Healthcare is planning a broad roll-out of Augmedix's solutions across its network of hospitals, indicating strong industry partnerships.
- The introduction of Augmedix Go, a clinician-controlled mobile app, has received positive feedback and is expected to drive further growth.
- The company's diversified product portfolio and focus on profitability goals position Augmedix as a market leader in the medical documentation sector.
- None.
Insights
The financial results presented by Augmedix display a robust revenue increase of 45% year-over-year, which is a significant indicator of the company's growth trajectory. The reported net revenue retention rate of 152% for Health Enterprise customers is particularly noteworthy, as it suggests that not only is Augmedix retaining its customer base, but it is also expanding its revenue streams from existing clients. This metric is often seen as a bellwether for future revenue stability and growth potential.
From a profitability perspective, the gross margin expansion of 300 basis points to 49.3% is commendable, demonstrating operational efficiency and cost management. However, the company continues to operate at a loss, with a net loss reduction of 20% compared to the previous year. Investors may view the reduced operating cash burn positively, as it reflects a move towards financial sustainability. The capital raise in November is likely to support further expansion and investment in product development, which could be a catalyst for future growth.
Augmedix's strategic positioning in the ambient AI medical documentation sector is significant, considering the growing demand for efficient healthcare documentation solutions. The launch and anticipated roll-out of Augmedix Go, both in ambulatory and emergency room settings, demonstrate the company's commitment to innovation and meeting the needs of clinicians. The market's positive response to the app's quality and acceptance by clinicians could be a driver for increased adoption rates.
Additionally, the partnership with HCA Healthcare and plans for a broad network roll-out could substantially increase market penetration and reinforce Augmedix's presence in the healthcare sector. As the company continues to target both ambulatory and acute care settings with its portfolio, the potential market leadership position it aims for could materialize, provided that the execution aligns with strategic goals and customer acquisition continues to accelerate.
Augmedix's performance in a rapidly evolving healthcare technology market is impressive, with its HITRUST certification adding a layer of credibility and trust in its solutions. The company's focus on ambient AI technology for medical documentation aligns with the industry's move towards digitalization and automation to improve efficiency and reduce administrative burdens on clinicians.
The integration of structured data and bi-directional communication channels into its product offerings demonstrates a deep understanding of healthcare providers' needs. As the company anticipates strong growth and gross margin expansion in 2024, it will be important to monitor how its investments in technology and product development translate into market share gains and customer satisfaction.
SAN FRANCISCO, March 18, 2024 (GLOBE NEWSWIRE) -- Augmedix (Nasdaq: AUGX), a leader in ambient AI medical documentation and data solutions, today reported financial results for the three and 12 months ended December 31, 2023.
“The fourth quarter was a solid end to a strong year for Augmedix both operationally and financially,” stated Augmedix CEO Manny Krakaris. “We delivered a
“We are pleased with the early performance of Augmedix Go, our clinician-controlled mobile app that uses ambient AI technology and structured data to create a fully automated draft medical note,” continued Krakaris. “Feedback has been encouraging in terms of quality and acceptance by clinicians. Initial orders for the ambulatory version since it was made generally available in December have met our expectations. Meanwhile, the emergency room version of Augmedix Go is on track for its own General Availability release by the end of March. Independently, our strategic partner HCA Healthcare is making plans for a broad roll-out across its network of hospitals.”
Concluded Krakaris, “With expanded capital resources, we are accelerating our efforts to capture the growing medical documentation opportunity in front of us. We are highly confident that our broad portfolio of products, including a high-performing automated documentation solution, that works effectively across ambulatory and acute care settings, structured data, a bi-directional communication channel to the point of care, and HITRUST certification, provide Augmedix with a differentiated offering that will enable Augmedix to be one of the market leaders as the market matures over the coming years. In 2024, we anticipate another year of strong growth and continued gross margin expansion that will benefit from our increased investment from our November capital raise proceeds.”
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||
| Financial Highlights: | |||||||||||||||||
| Revenues | 45 | % | 45 | % | |||||||||||||
| Gross profit | 54 | % | 54 | % | |||||||||||||
| Gross margin | 49.3 % | 46.3 % | 300 bps | 48.0 % | 45.1 % | 290 bps | |||||||||||
| Net loss | ) | ) | 20 | % | ) | ) | 22 | % | |||||||||
| Loss per share | ) | ) | 40 | % | ) | ) | 32 | % | |||||||||
| Adjusted EBITDA (non-GAAP) | ) | ) | 26 | % | ) | ) | 22 | % | |||||||||
Fourth Quarter 2023 Financial Highlights
All comparisons, unless otherwise noted, are to the three months ended December 31, 2022.
- Total revenue was
$12.7 million , slightly stronger than our January pre-announcement and an increase of45% compared to$8.8 million . - Dollar-based Net Revenue Retention was
152% for our Health Enterprise customers compared to126% . - Gross Profit increased
54% to$6.2 million from$4.0 million . - Gross Margin increased 300 basis points to
49.3% compared to46.3% . - Operating Expenses were
$10.6 million compared to$9.5 million . Adjusted operating expenses, a Non-GAAP metric, increased12% to$9.9 million compared to$8.8 million . - Net loss was
$4.5 million compared to$5.6 million . - Adjusted EBITDA loss, a Non-GAAP metric, improved to
$3.3 million from$4.5 million . - Operating cash burn improved to
$0.9 million compared to$4.4 million . - Cash and cash equivalents as of December 31, 2023, was
$46.2 million compared to$21.3 million as of December 31, 2022. - Common shares and pre-funded warrants outstanding as of December 31, 2023 were 52,988,987. The pre-funded warrants are included in the weighted average shares outstanding for the EPS calculation. Net exercising
100% of the remaining warrants and100% of the fully-vested and in-the-money employee equity awards at a price of$3.20 per share would add another approximately 4.1 million common shares.
Full Year 2023 Financial Highlights
All comparisons, unless otherwise noted, are to the 12 months ended December 31, 2022.
- Total revenue was
$44.9 million , an increase of45% compared to$30.9 million . - Dollar-based Net Revenue Retention was
148% for our Health Enterprise customers compared to128% . - Gross Profit increased
54% to$21.5 million from$14.0 million . - Gross Margin increased 290 basis points to
48.0% compared to45.1% . - Operating Expenses were
$40.3 million compared to$36.3 million . Adjusted operating expenses, a Non-GAAP metric, grew11% to$38.0 million compared to$34.3 million . - Net loss was
$19.2 million compared to$24.4 million . - Adjusted EBITDA loss, a Non-GAAP metric, improved to
$15.2 million from$19.4 million .
Adjusted operating expenses and Adjusted EBITDA are Non-GAAP financial measures. See “Non-GAAP Financial Measures.” Please see “Non-GAAP Financial Measures” below and the Reconciliation of GAAP to Non-GAAP Metrics table below.
2024 Revenue Guidance
Based on the solid finish to 2023 and the trends we are seeing this year, Augmedix expects to generate approximately
Conference Call
Augmedix will host a conference call at 4:30 p.m. ET / 1:30 p.m. PT today, Monday, March 18, 2024, to discuss its fourth quarter and full year 2023 financial results. The conference call can be accessed by dialing + 1-877-407-3982 for U.S. participants or +1 (201) 493-6780 for international participants and referencing conference ID # 13726968. Interested parties may access a live and archived webcast on the “Investor Relations” section of the Company’s website at: ir.augmedix.com.
Definition of Key Metrics
Average Clinicians in Service: We define a clinician in service as an individual doctor, nurse practitioner or other healthcare professional using our products. We average the month-end number of clinicians in service for all months in the measurement period and the number of clinicians in service at the end of the month immediately preceding the measurement period. We believe growth in the average number of clinicians in service is a key indicator of the performance of our business as it demonstrates our ability to penetrate the market and grow our business.
Average Annual Revenue Per Clinician: Average revenue per clinician is determined as total revenue, excluding Data Services revenue, recognized during the period presented divided by the average number of clinicians in service during that same period. Using the number of clinicians in service at the end of each month, we derive an average number of clinicians in service for the periods presented. The average annual revenue per clinician will vary based upon minimum hours of service requested by clinicians, pricing, and our product mix.
Dollar-Based Net Revenue Retention: We define a "Health Enterprise" as a company or network of doctors that has at least 50 clinicians currently employed or affiliated that could utilize our services. Dollar-based net revenue retention is determined as the revenue from Health Enterprises as of twelve months prior to such period end as compared to revenue from these same Health Enterprises as of the current period end, or current period revenue. Current period revenue includes any expansion or new products and is net of contraction or churn over the trailing twelve months but excludes revenue from new Health Enterprises in the current period. We believe growth in dollar-based net revenue retention is a key indicator of the performance of our business as it demonstrates our ability to increase revenue across our existing customer base through expansion of users and products, as well as our ability to retain existing customers.
About Augmedix
Augmedix (Nasdaq: AUGX) empowers clinicians to connect with patients by liberating them from administrative burden through the power of ambient AI, data, and trust.
The platform transforms natural conversations into organized medical notes, structured data, and point-of-care notifications that enhance efficiency and clinical decision support.
Incorporating data from millions of interactions across all care settings, Augmedix collaborates with hospitals and health systems to improve clinical, operational, and financial outcomes.
Augmedix is headquartered in San Francisco, CA, with offices around the world. To learn more, visit www.augmedix.com.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted operating expenses, and adjusted EBITDA. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted Operating Expense as total operating expenses less share-based compensation expense.
In the fourth quarter of 2023, Augmedix changed its computation of Adjusted EBITDA to better reflect the performance of the Company’s business predominantly due to the equity financing that occurred in November of 2023, which significantly increased the Company’s cash balance. We now define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; income tax expense (benefit); and other income (expense) net, which consists of interest expense on our debt facility, interest income from our cash and cash equivalents, realized foreign currency gains and losses, loss on extinguishment of debt, change in fair value of a warrant liability, and grant income from the Bangladesh government related to our Bangladesh subsidiary. Prior to the fourth quarter of 2023, the Company did not exclude interest income earned on cash balances, realized foreign currency transaction gains or losses or grant income received from the Bangladesh government from the computation of Adjusted EBITDA. Adjusted EBITDA has been recast in prior periods to reflect this change for consistency in presentation.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from reviewing these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity as well as comparisons to our competitors' operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
There are a number of limitations related to the use of non-GAAP financial measures. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their relevant financial measures in accordance with GAAP.
For more information on the non-GAAP financial measures, please see the Reconciliation of GAAP to non-GAAP Metrics table in this press release. This accompanying table includes details on the GAAP financial measures that are most directly comparable to Non-GAAP financial measures and the related reconciliations between these financial measures.
Forward-Looking Statements
This press release contains "forward-looking statements" that involve a number of risks and uncertainties. Words such as "believes," "may," "will," "estimates," "potential," "continues," "anticipates," "intends," "expects," "could," "would," "projects," "plans," "targets," and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the encouraging feedback we have received regarding the early performance of Augmedix Go; the emergency room version of Augmedix Go being on track for its own General Availability release by the end of March; our strategic partner HCA Healthcare preparing to formally evaluate this version of Augmedix Go before a broad roll-out across its network of hospitals; the acceleration of our efforts to capture the growing medical documentation opportunity in front of us; our high confidence that our broad portfolio of products, including a high-performing automated documentation solution, that works effectively across ambulatory and acute care settings, structured data, a bi-directional communication channel to the point of care, and HITRUST certification, provide Augmedix with a differentiated offering that will enable Augmedix to be one of the market leaders as the market matures over the coming years; our anticipation that 2024 will be another year of strong growth and continued gross margin expansion that will benefit from the increased investment we are making from our November capital raise proceeds; and our expectation to generate approximately
Investors:
Matt Chesler, CFA
FNK IR
investors@augmedix.com
Media:
Kaila Grafeman
Augmedix
pr@augmedix.com
| AUGMEDIX, INC. | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (Unaudited, in thousands, except shares and key metrics) | |||||||||||||||
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues | $ | 12,680 | $ | 8,751 | $ | 44,855 | $ | 30,933 | |||||||
| Cost of revenues | 6,434 | 4,702 | 23,329 | 16,979 | |||||||||||
| Gross profit | 6,246 | 4,049 | 21,526 | 13,954 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 4,906 | 4,538 | 18,442 | 16,893 | |||||||||||
| Sales and marketing | 2,747 | 2,339 | 10,687 | 9,283 | |||||||||||
| Research and development | 2,940 | 2,612 | 11,176 | 10,149 | |||||||||||
| Total operating expenses | 10,593 | 9,489 | 40,305 | 36,325 | |||||||||||
| Loss from operations | (4,347 | ) | (5,440 | ) | (18,779 | ) | (22,371 | ) | |||||||
| Other income (expenses): | |||||||||||||||
| Interest expense | (645 | ) | (373 | ) | (2,253 | ) | (1,675 | ) | |||||||
| Interest income | 384 | 177 | 1,110 | 245 | |||||||||||
| Loss on debt extinguishment | — | — | — | (1,097 | ) | ||||||||||
| Change in fair value of warrant liability | — | — | (105 | ) | — | ||||||||||
| Other | 93 | 108 | 1,001 | 560 | |||||||||||
| Total other income (expenses), net | (168 | ) | (88 | ) | (247 | ) | (1,967 | ) | |||||||
| Loss before income taxes | (4,515 | ) | (5,528 | ) | (19,026 | ) | (24,338 | ) | |||||||
| Income tax expense (benefit) | (24 | ) | 71 | 145 | 111 | ||||||||||
| Net loss | $ | (4,491 | ) | $ | (5,599 | ) | $ | (19,171 | ) | $ | (24,449 | ) | |||
| Weighted average shares of common stock outstanding, basic and diluted | 49,021,095 | 37,435,000 | 43,946,263 | 37,418,463 | |||||||||||
| Key Metrics: | |||||||||||||||
| Average clinicians in service | 1,789 | 1,246 | 1,585 | 1,093 | |||||||||||
| Average annual revenue per clinician | 28,200 | 27,500 | 28,100 | 27,900 | |||||||||||
| Dollar-based net revenue retention | 152 % | 126 % | 148 % | 128 % | |||||||||||
| AUGMEDIX, INC. | ||||||
| Condensed Consolidated Balance Sheet | ||||||
| (Unaudited, in thousands) | ||||||
| December 31, | ||||||
| 2023 | 2022 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 46,217 | $ | 21,251 | ||
| Restricted cash | 125 | 125 | ||||
| Accounts receivable, net of allowance for doubtful accounts of | 8,572 | 6,354 | ||||
| Prepaid expenses and other current assets | 1,909 | 1,820 | ||||
| Total current assets | 56,823 | 29,550 | ||||
| Property and equipment, net | 3,739 | 1,573 | ||||
| Operating lease right of use asset | 5,220 | 1,567 | ||||
| Restricted cash, non-current | — | 612 | ||||
| Deposits and other assets | 930 | 339 | ||||
| Total assets | $ | 66,712 | $ | 33,641 | ||
| Liabilities, and Stockholders’ Equity | ||||||
| Current liabilities: | ||||||
| Loan payable, current portion | $ | 5,000 | $ | 3,750 | ||
| Accounts payable | 721 | 1,563 | ||||
| Accrued expenses and other current liabilities | 6,589 | 5,321 | ||||
| Deferred revenue | 8,963 | 7,254 | ||||
| Operating lease liability, current portion | 1,494 | 872 | ||||
| Customer deposits | 851 | 554 | ||||
| Total current liabilities | 23,618 | 19,314 | ||||
| Loan payable, net of current portion | 15,303 | 11,384 | ||||
| Other liabilities | 421 | 509 | ||||
| Operating lease liability, net of current portion | 4,049 | 968 | ||||
| Total liabilities | $ | 43,391 | $ | 32,175 | ||
| Total stockholders’ equity | 23,321 | 1,466 | ||||
| Total liabilities and stockholders’ equity | $ | 66,712 | $ | 33,641 | ||
| AUGMEDIX, INC. | ||||||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| (Unaudited, in thousands) | ||||||||
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Net cash used in operating activities | $ | (15,400 | ) | $ | (16,773 | ) | ||
| Net cash used in investing activities | (3,146 | ) | (1,408 | ) | ||||
| Net cash provided by (used in) financing activities | 43,370 | (1,237 | ) | |||||
| Effect of exchange rate changes on cash and restricted cash | (470 | ) | (181 | ) | ||||
| Net increase (decrease) in cash and restricted cash | 24,354 | (19,599 | ) | |||||
| Cash and restricted cash at beginning of year | 21,988 | 41,587 | ||||||
| Cash and restricted cash at end of year | $ | 46,342 | $ | 21,988 | ||||
| AUGMEDIX, INC. | |||||||||||||||
| Reconciliation of GAAP to Non-GAAP Metrics | |||||||||||||||
| (Unaudited, in thousands) | |||||||||||||||
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| Adjusted EBITDA: | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net loss | $ | (4,492 | ) | $ | (5,599 | ) | $ | (19,171 | ) | $ | (24,449 | ) | |||
| Add: Other income (expense) , net | 169 | 89 | 247 | 1,967 | |||||||||||
| Add: Depreciation | 306 | 249 | 1,098 | 856 | |||||||||||
| Add: Share-based compensation | 736 | 720 | 2,471 | 2,112 | |||||||||||
| Add: Income tax expense (benefit) | (24 | ) | 71 | 145 | 111 | ||||||||||
| Total adjustments | 1,186 | 1,129 | 3,961 | 5,045 | |||||||||||
| Adjusted EBITDA | $ | (3,306 | ) | $ | (4,470 | ) | $ | (15,210 | ) | $ | (19,404 | ) | |||
| Adjusted Operating Expenses: | |||||||||||||||
| Total operating expenses | $ | 10,593 | $ | 9,489 | $ | 40,305 | $ | 36,325 | |||||||
| Less: Share-based compensation | 698 | 697 | 2,346 | 2,023 | |||||||||||
| Adjusted operating expenses | $ | 9,895 | $ | 8,792 | $ | 37,959 | $ | 34,302 | |||||||
FAQ
What was Augmedix's (AUGX) revenue for the fourth quarter of 2023?
What was the gross profit for Augmedix (AUGX) in the fourth quarter of 2023?
What was the net loss for Augmedix (AUGX) in the fourth quarter of 2023?
What is Augmedix's (AUGX) revenue guidance for 2024?
What is the purpose of Augmedix Go, the mobile app mentioned in the press release?
