DermTech Reports First-Quarter 2022 Financial Results; Company Affirms Full-Year 2022 Outlook
DermTech, Inc. (NASDAQ: DMTK) reported first-quarter 2022 financial results, highlighting a record growth in billable sample volume, which increased by 53% to approximately 14,370. Assay revenue surged 61% year-over-year to $3.5 million, contributing to total revenue of $3.7 million, a 47% rise. However, net loss was $30.1 million ($1.01 per share), up from $15.1 million in Q1 2021. The company affirmed its 2022 assay revenue outlook of $22-$26 million and expanded telehealth services, now covering 95% of the U.S. population.
- Billable sample volume grew 53% year-over-year.
- Assay revenue increased by 61%, reaching $3.5 million.
- Total revenue rose by 47% to $3.7 million.
- Affirmed full-year 2022 assay revenue outlook between $22 million and $26 million.
- Expanded telehealth availability to 44 states, covering 95% of the U.S. population.
- Net loss increased to $30.1 million from $15.1 million year-over-year.
- Sales and marketing expenses rose by 137% to $15.4 million.
- R&D expenses surged by 182% to $6.3 million.
- General and administrative expenses increased by 66% to $8.6 million.
- Record billable sample volume and assay revenue
“We kicked off the year on a record pace for many of our key operating metrics and affirmed our full-year 2022 outlook,” said
First-Quarter 2022 Financial Results
- Billable sample volume grew 53 percent from the first quarter of 2021 to approximately 14,370.
-
Assay revenue was
, up 61 percent from the first quarter of 2021, primarily due to higher billable sample volume.$3.5 million -
Total revenue was
, a 47 percent increase from the first quarter of 2021, driven by higher assay revenue.$3.7 million -
Sales and marketing expenses were
, a 137 percent increase from the first quarter of 2021. The increase was primarily attributable to higher employee-related costs from increased headcount and marketing expenditures.$15.4 million -
Research and development expenses were
, a 182 percent increase from the first quarter of 2021, largely due to higher employee-related and clinical trial costs.$6.3 million -
General and administrative expenses were
, a 66 percent increase from the first quarter of 2021. The increase was driven by higher employee-related and infrastructure costs.$8.6 million -
Net loss was
, or$30.1 million per share, which included$1.01 of non-cash stock-based compensation expense, as compared to$3.9 million , or$15.1 million per share, for the first quarter of 2021, which included$0.55 of non-cash stock-based compensation expense.$2.2 million -
Cash, cash equivalents, restricted cash and short-term marketable securities were
as of$202.1 million March 31, 2022 .
Other Business Highlights
-
In
March 2022 , SKIN:The Journal of Cutaneous Medicine published theOptumInsight economic study, which suggested that using DermTech’s Pigmented Lesion Assay to rule out melanoma can minimize avoidable surgical procedures on benign lesions and decrease downstream costs of late-stage melanoma diagnoses, which reduces overall cost of care. This model predicted annual net savings of per member per month over a three-year period for commercial health plans.$0.54 -
The Company expanded its telehealth availability through DermTech Connect, which is now available in 44 states and represents
95% of theU.S. population.
2022 Outlook
The Company affirmed its full-year 2022 outlook for assay revenue between
Conference Call Information
As previously announced, the Company will host a conference call to discuss its results at
About
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of
Condensed Consolidated Balance Sheets (in thousands, except share and per share data) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
|
$ |
145,053 |
|
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$ |
176,882 |
|
Short-term marketable securities |
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54,053 |
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48,449 |
|
Accounts receivable |
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4,995 |
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|
3,847 |
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Inventory |
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763 |
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|
480 |
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Prepaid expenses and other current assets |
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3,260 |
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3,166 |
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Total current assets |
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208,124 |
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232,824 |
|
Property and equipment, net |
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5,141 |
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4,549 |
|
Operating lease right-of-use assets |
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|
23,065 |
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|
7,744 |
|
Restricted cash |
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3,025 |
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|
3,025 |
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Other assets |
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167 |
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|
167 |
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Total assets |
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$ |
239,522 |
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$ |
248,309 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,575 |
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$ |
2,880 |
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Accrued compensation |
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6,643 |
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5,120 |
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Accrued liabilities |
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3,041 |
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1,227 |
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Short-term deferred revenue |
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1,350 |
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1,380 |
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Current portion of operating lease liabilities |
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1,703 |
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1,453 |
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Current portion of finance lease obligations |
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|
112 |
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|
121 |
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Total current liabilities |
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14,424 |
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12,181 |
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Warrant liability |
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|
129 |
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|
146 |
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Long-term finance lease obligations, less current portion |
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|
105 |
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|
136 |
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Operating lease liabilities, long-term |
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21,383 |
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6,148 |
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Total liabilities |
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36,041 |
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18,611 |
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Stockholders’ equity: |
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Common stock,
authorized as of 29,940,637 and 29,772,922 shares issued and outstanding at
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3 |
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3 |
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Additional paid-in capital |
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440,644 |
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436,183 |
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Accumulated other comprehensive loss |
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(694 |
) |
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(124 |
) |
Accumulated deficit |
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(236,472 |
) |
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(206,364 |
) |
Total stockholders’ equity |
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203,481 |
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229,698 |
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Total liabilities and stockholders’ equity | $ | 239,522 |
$ | 248,309 |
Condensed Consolidated Statements of Operations (in thousands, except share and per share data) |
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Three Months Ended |
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2022 |
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2021 |
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Revenues: |
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Assay revenue |
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$ |
3,518 |
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$ |
2,190 |
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Contract revenue |
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200 |
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334 |
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Total revenues |
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3,718 |
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2,524 |
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Cost of revenues: |
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Cost of assay revenue |
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3,530 |
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1,971 |
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Cost of contract revenue |
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24 |
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31 |
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Total cost of revenues |
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3,554 |
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2,002 |
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Gross profit |
|
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164 |
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|
522 |
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Operating expenses: |
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Sales and marketing |
|
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15,443 |
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|
6,512 |
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Research and development |
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6,338 |
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2,251 |
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General and administrative |
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8,574 |
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5,172 |
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Total operating expenses |
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30,355 |
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13,935 |
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Loss from operations |
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(30,191 |
) |
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(13,413 |
) |
Other income/(expense): |
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Interest income, net |
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66 |
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34 |
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Change in fair value of warrant liability |
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17 |
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(1,689 |
) |
Total other income/(expense) |
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83 |
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(1,655 |
) |
Net loss |
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$ |
(30,108 |
) |
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$ |
(15,068 |
) |
Weighted average shares outstanding used in computing net loss per share, basic and diluted |
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29,836,072 |
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27,152,868 |
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Net loss per share of common stock outstanding, basic and diluted |
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$ |
(1.01 |
) |
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$ |
(0.55 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006051/en/
(858) 291-1647
steve.kunszabo@dermtech.com
Source:
FAQ
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