Rockley Photonics Announces Fourth Quarter and Full Year 2021 Financial Results
Rockley Photonics (NYSE: RKLY) reported its 2021 financial results, showing a 63% revenue decline to $8.2 million from $22.3 million in 2020. Despite this, gross profit improved to $2.7 million compared to a loss in Q3 2021. The company introduced its Bioptx™ biomarker sensing platform to the professional healthcare market and expanded partnerships in consumer wearables, targeting significant growth in 2022. Net loss narrowed significantly to $14.7 million in Q4 compared to $58 million the previous quarter. The 2022 revenue outlook is projected between $20 - $30 million.
- Launched Bioptx biomarker sensing platform ahead of schedule to meet customer demand.
- Achieved significant expansion in consumer wearables with six new agreements.
- Improved gross profit to $2.7 million in Q4 2021.
- Revenue declined by 63% year-over-year from $22.3 million in 2020 to $8.2 million in 2021.
- Net loss of $14.7 million in Q4 represents a substantial loss despite narrowing from previous quarter.
Customer Demand Drives Early Introduction of Bioptx™ Biomarker Sensing Platform, Adding Professional Healthcare Solution to Previously Announced Consumer Wearables Solution, VitalSpex™
Rockley Ends 2021 with 17 Consumer Electronics and Medtech Contracted Customers, First Commercial Products Expected to Be Available as Early as Second Half 2022 and Volume Ramp Expected in 2023
“Throughout 2021, we made tremendous progress in product development and with our customers, exceeding many of our goals for the year,” said Dr.
“During the quarter, we achieved many of our goals and strengthened our financial position,” said
Business Highlights:
-
VitalSpex to Drive Continued Momentum in Consumer Wearables – During the quarter, the Company announced a significant expansion of its footprint in the consumer wearables market by signing new agreements with six global consumer electronics manufacturers.
Rockley is actively working with 12 consumer electronics customers, including six of the top ten largest manufacturers of smart watches and wristbands, to design its chipsets and modules into consumer products as well as offer products that will provide access to its AI cloud suite.
-
Bioptx Biomarker Sensing Platform to Serve Professional Healthcare Market – The Company announced its Bioptx product line, a platform featuring a non-invasive, continuous biosensing wristband enabled with technology that will measure an extensive range of biomarkers and leverage custom cloud analytics and AI. Bioptx was launched two years ahead of schedule to meet increasing demand from customers, accelerating the development of non-invasive remote monitoring solutions for healthcare. Engineering samples shipped in January to multiple customers, and availability of the first commercial products is expected in the second half of 2022. The Company also plans to generate recurring revenue from its AI cloud suite and subscription sales.
Rockley plans to seek certification from theU.S. Food and Drug Administration and other regulatory agencies.
-
Human Studies of Biomarkers to Continue in 2022 –
Rockley recently announced initial results of its human studies of core body temperature and blood pressure. In the temperature study,Rockley demonstrated the initial efficacy of its photonics-based sensor for measuring core body temperature, surpassing the results achieved by auxiliary sensors like oral, ear, and infrared thermometers. Next, the Company released the results of its pilot blood pressure human study, using a cuffless,Rockley -powered, wrist-worn device. The results demonstrated promising signal quality, potentially providing an alternative method for measuring cardiovascular health, and also suggested a strong correlation to heart rate and heart rate variability measurements, which are commonly used in electrocardiogram equipment. Additional human studies for these and other biomarkers, including hydration, alcohol, lactate, and glucose trends, are ongoing, and the results are expected to be released throughout 2022.
-
Membership in Center to
Stream Healthcare in Place (C2SHIP) Accepted – During the quarter,Rockley joined C2SHIP, a consortium of academic centers and industry partners, including many leading researchers and academics, with a mission to develop technologies and approaches for high-quality personalized healthcare delivered at home. C2SHIP is sponsored by theNational Science Foundation .
-
ISO 9001 Certification Demonstrates Commitment to Quality Solutions – Following an extensive review process,
Rockley achieved ISO 9001 certification, demonstrating its commitment to its customers, to optimizing its leadership team, to improving and fine-tuning its internal processes, and to the practice of continuous improvement. The Company is proud that its commitment to quality management principles has been recognized.
Fourth Quarter and Fiscal Year 2021 Financial Highlights:
(in millions except per share) |
Three Months Ended |
|
|
Years Ended |
|
|||||||||||||||||||
|
|
|
Variance ($) |
|
|
|
Variance ($) |
|||||||||||||||||
Revenue |
$ |
2.4 |
|
$ |
1.8 |
|
$ |
0.6 |
|
|
$ |
8.2 |
|
$ |
22.3 |
|
$ |
(14.1 |
) |
|||||
Gross profit |
$ |
2.7 |
|
$ |
(1.6 |
) |
$ |
4.3 |
|
|
$ |
(3.2 |
) |
$ |
(1.9 |
) |
$ |
(1.3 |
) |
|||||
SG&A expense |
$ |
12.4 |
|
$ |
13.6 |
|
$ |
(1.2 |
) |
|
$ |
40.0 |
|
$ |
20.3 |
|
$ |
19.7 |
|
|||||
R&D expense |
$ |
12.6 |
|
$ |
26.4 |
|
$ |
(13.8 |
) |
|
$ |
72.6 |
|
$ |
35.9 |
|
$ |
36.7 |
|
|||||
Net loss |
$ |
(14.7 |
) |
$ |
(58.0 |
) |
$ |
43.3 |
|
|
$ |
(168.0 |
) |
$ |
(80.3 |
) |
$ |
(87.7 |
) |
|||||
Net loss per share |
$ |
(0.12 |
) |
$ |
(0.54 |
) |
$ |
0.42 |
|
|
$ |
(1.66 |
) |
$ |
(0.96 |
) |
$ |
(0.70 |
) |
|||||
Cash, cash equivalents, and investments at period end |
$ |
81.4 |
|
$ |
125.0 |
|
$ |
(43.6 |
) |
|
$ |
81.4 |
|
$ |
19.2 |
|
$ |
62.2 |
|
|||||
Cash used in operations |
$ |
(34.1 |
) |
$ |
(37.4 |
) |
$ |
3.3 |
|
|
$ |
(126.0 |
) |
$ |
(48.4 |
) |
$ |
(77.6 |
) |
|||||
Non-GAAP Financial Highlights:
SG&A expense |
$ |
10.1 |
|
$ |
9.4 |
|
$ |
0.7 |
|
|
$ |
30.9 |
|
$ |
14.4 |
|
$ |
16.5 |
|
|||||
R&D expense |
$ |
8.1 |
|
$ |
24.3 |
|
$ |
(16.2 |
) |
|
$ |
62.5 |
|
$ |
29.6 |
|
$ |
32.9 |
|
|||||
Net loss |
$ |
(7.1 |
) |
$ |
(51.4 |
) |
$ |
44.3 |
|
|
$ |
(147.0 |
) |
$ |
(65.8 |
) |
$ |
(81.2 |
) |
|||||
Net loss per share |
$ |
(0.06 |
) |
$ |
(0.48 |
) |
$ |
0.42 |
|
|
$ |
(1.46 |
) |
$ |
(0.79 |
) |
$ |
(0.67 |
) |
|||||
Adjusted EBITDA |
$ |
(14.7 |
) |
$ |
(35.6 |
) |
$ |
20.9 |
|
|
$ |
(95.0 |
) |
$ |
(43.6 |
) |
$ |
(51.4 |
) |
A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the financial statement tables included in this press release. For more information regarding the non-GAAP financial measures discussed in this press release, please see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures" below.
Revised Outlook for Fiscal Year 2022:
Revenue |
|
Actual results may differ materially from Rockley’s financial outlook as a result of several factors, including the factors described under “Cautionary Statement Regarding Forward-Looking Statements” below.
Conference Call Information
The
Disclosure Information
In compliance with disclosure obligations under Regulation FD,
About
A global leader in photonics-based health monitoring and communications solutions,
Formed in 2013,
To learn more about
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not historical facts constitute “forward-looking statements” for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding Rockley’s future expectations, beliefs, plans, objectives, and assumptions regarding future events or performance. The words “anticipate,” “believe,” “continue,” “could,” “develop,” “enable,” “estimate,” “eventual,” “expect,” “future,” “intend,” “may,” “might,” “opportunity,” “outlook,” “plan,” “possible,” “position,” “potential,” “predict,” “project,” “revolutionize,” “seem,” “should,” “trend,” “will,” “would” and other terms that predict or indicate future events, trends, or expectations, and similar expressions or the negative of such expressions may identify forward-looking statements, but the absence of these words or terms does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements regarding the following: (a) the potential of the Company’s solutions to improve individuals’ health and well-being and enable the transition from reactive to proactive healthcare; (b) the anticipated retirement of the Company’s remaining debt obligation and timing thereof; (c) the Company’s financing agreement with
Forward-looking statements are subject to several risks and uncertainties (many of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: (i) the Company’s ability to achieve commercial production of its products and technology, including in a timely and cost-effective manner; (ii) the Company’s ability to achieve customer design wins, convert memoranda of understanding and development contracts into production contracts, and achieve customer acceptance of its products and technology; (iii) risks related to purchase orders, including the lack of long-term purchase commitments, the cancellation, reduction, delay, or other changes in customer purchase orders, and if and to the extent customers seek to enter into licensing arrangements in lieu of purchases; (iv) the Company’s history of losses and need for additional capital and its ability to access additional financing to support its operations and execute on its business plan, as well as the risks associated with any future financings; (v) legal and regulatory risks, including those related to its products and technology and any threatened or actual litigation; (vi) risks associated with its fabless manufacturing model and dependency on third-party suppliers; (vii) the Company’s reliance on a few significant customers for a majority of its revenue and its ability to expand and diversify its customer base; (viii) the Company’s financial performance; (ix) the impacts of COVID-19 on the Company, its customers and suppliers, its target markets, and the economy; (x) the Company’s ability to successfully manage growth and its operations as a public company; (xi) fluctuations in the Company’s stock price and the Company’s ability to maintain the listing of its ordinary shares on the NYSE; (xii) the Company’s ability to anticipate and respond to industry trends and customer requirements; (xiii) changes in the Company’s current and future target markets; (xiv) intellectual property risks; (xv) the Company’s ability to compete successfully; (xvi) market opportunity and market demand for, and acceptance of, the Company’s products and technology, as well as the customer products into which the Company’s products and technology are incorporated; (xvii) risks related to international operations; (xviii) risks related to cybersecurity, privacy, and infrastructure; (xix) risks related to financial and accounting matters; (xx) general economic, financial, legal, political, and business conditions and changes in domestic and foreign markets; (xxi) the Company’s ability to realize the anticipated benefits of the business combination; (xxii) changes adversely affecting the businesses or markets in which the Company is engaged; and (xxiii) risks related to the Company’s backlog, including the risk that backlog may not translate into future revenue, as well as other factors described under the heading “Risk Factors” in the registration statement on Form S-1 filed by the Company on
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except share and per share amounts) |
||||||||||||||||||||
|
Three Months Ended |
|
Years Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
2,408 |
|
|
$ |
1,839 |
|
|
$ |
3,282 |
|
|
$ |
8,213 |
|
|
$ |
22,343 |
|
|
Cost of revenue |
|
(326 |
) |
|
|
3,459 |
|
|
|
6,140 |
|
|
|
11,416 |
|
|
|
24,240 |
|
|
Gross profit |
|
2,734 |
|
|
|
(1,620 |
) |
|
|
(2,858 |
) |
|
|
(3,203 |
) |
|
|
(1,897 |
) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
Selling, general and administrative expenses |
|
12,388 |
|
|
|
13,568 |
|
|
|
7,657 |
|
|
|
39,976 |
|
|
|
20,260 |
|
|
Research and development expenses |
|
12,624 |
|
|
|
26,418 |
|
|
|
8,893 |
|
|
|
72,573 |
|
|
|
35,900 |
|
|
Total operating expenses |
|
25,012 |
|
|
|
39,986 |
|
|
|
16,550 |
|
|
|
112,549 |
|
|
|
56,160 |
|
|
Loss from operations |
|
(22,278 |
) |
|
|
(41,606 |
) |
|
|
(19,408 |
) |
|
|
(115,752 |
) |
|
|
(58,057 |
) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|||||||||||
Forgiveness of PPP loan |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,860 |
|
|
|
— |
|
|
Interest expense, net |
|
(2,868 |
) |
|
|
(1,587 |
) |
|
|
(116 |
) |
|
|
(4,781 |
) |
|
|
(189 |
) |
|
Equity method investment loss |
|
17 |
|
|
|
40 |
|
|
|
(333 |
) |
|
|
(703 |
) |
|
|
(1,274 |
) |
|
Change in fair value of debt |
|
— |
|
|
|
(14,255 |
) |
|
|
(14,616 |
) |
|
|
(59,916 |
) |
|
|
(20,163 |
) |
|
Change in fair value of warrant |
|
10,312 |
|
|
|
515 |
|
|
|
— |
|
|
|
10,827 |
|
|
|
— |
|
|
Gain (loss) on foreign currency |
|
(31 |
) |
|
|
(481 |
) |
|
|
1,344 |
|
|
|
119 |
|
|
|
(25 |
) |
|
Total other income (expense) |
|
7,430 |
|
|
|
(15,768 |
) |
|
|
(13,721 |
) |
|
|
(51,594 |
) |
|
|
(21,651 |
) |
|
Loss before income taxes |
|
(14,848 |
) |
|
|
(57,374 |
) |
|
|
(33,129 |
) |
|
|
(167,346 |
) |
|
|
(79,708 |
) |
|
Provision for income tax |
|
(141 |
) |
|
|
598 |
|
|
|
195 |
|
|
|
667 |
|
|
|
569 |
|
|
Net loss and comprehensive loss |
$ |
(14,707 |
) |
|
$ |
(57,972 |
) |
|
$ |
(33,324 |
) |
|
$ |
(168,013 |
) |
|
$ |
(80,277 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic and diluted |
$ |
(0.12 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.40 |
) |
|
$ |
(1.66 |
) |
|
$ |
(0.96 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic and diluted |
|
127,355,926 |
|
|
|
107,633,037 |
|
|
|
83,652,056 |
|
|
|
100,917,939 |
|
|
|
83,457,400 |
|
|
Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts and par value) |
||||||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
36,786 |
|
|
$ |
19,228 |
|
|
Short-term investments, at fair value |
|
26,965 |
|
|
|
— |
|
|
Accounts receivable, net of allowance of |
|
1,359 |
|
|
|
4,925 |
|
|
Other receivables, net of allowance of |
|
47,462 |
|
|
|
18,024 |
|
|
Prepaid expenses |
|
6,795 |
|
|
|
1,605 |
|
|
Other current assets |
|
7 |
|
|
|
609 |
|
|
Total current assets |
|
119,374 |
|
|
|
44,391 |
|
|
Long-term investments, at fair value |
|
17,659 |
|
|
|
— |
|
|
Property, equipment, net |
|
10,187 |
|
|
|
6,182 |
|
|
Equity method investment |
|
4,879 |
|
|
|
5,202 |
|
|
Intangible assets |
|
3,048 |
|
|
|
3,048 |
|
|
Other non-current assets |
|
7,683 |
|
|
|
1,607 |
|
|
Total assets |
$ |
162,830 |
|
|
$ |
60,430 |
|
|
|
|
|
|
|||||
Liabilities and Shareholders’ Equity (Deficit) |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Trade payables |
$ |
6,882 |
|
|
$ |
4,413 |
|
|
Accrued expenses |
|
17,360 |
|
|
|
10,395 |
|
|
Debt, current portion |
|
26,312 |
|
|
|
— |
|
|
Other current liabilities |
|
1,238 |
|
|
|
998 |
|
|
Total current liabilities |
|
51,792 |
|
|
|
15,806 |
|
|
Long-term debt, net of current portion |
|
— |
|
|
|
74,804 |
|
|
Warrant liabilities |
|
3,477 |
|
|
|
— |
|
|
Other long-term liabilities |
|
3,743 |
|
|
|
1,127 |
|
|
Total liabilities |
|
59,012 |
|
|
|
91,737 |
|
|
|
|
|
|
|||||
Shareholders’ equity (deficit) |
|
|
|
|||||
Ordinary shares, |
|
— |
|
|
|
— |
|
|
Additional paid-in-capital |
|
504,714 |
|
|
|
201,576 |
|
|
Accumulated deficit |
|
(400,896 |
) |
|
|
(232,883 |
) |
|
Total shareholders’ equity (deficit) |
|
103,818 |
|
|
|
(31,307 |
) |
|
Total liabilities and shareholders’ equity (deficit) |
$ |
162,830 |
|
|
$ |
60,430 |
|
|
Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
|
$ |
(14,707 |
) |
|
$ |
(57,972 |
) |
|
$ |
(33,324 |
) |
|
$ |
(168,013 |
) |
|
$ |
(80,277 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation of property and equipment |
|
|
1,412 |
|
|
|
1,229 |
|
|
|
692 |
|
|
|
4,640 |
|
|
|
2,787 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(107 |
) |
Amortization of debt issuance costs |
|
|
— |
|
|
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
|
— |
|
Bad debt expense and allowance for doubtful accounts |
|
|
443 |
|
|
|
— |
|
|
|
— |
|
|
|
820 |
|
|
|
— |
|
Accretion of marketable securities to redemption value |
|
|
(90 |
) |
|
|
(32 |
) |
|
|
— |
|
|
|
(122 |
) |
|
|
— |
|
Stock-based compensation |
|
|
6,157 |
|
|
|
2,155 |
|
|
|
2,178 |
|
|
|
12,013 |
|
|
|
8,043 |
|
Change in equity-method investment |
|
|
(23 |
) |
|
|
(145 |
) |
|
|
333 |
|
|
|
323 |
|
|
|
1,274 |
|
Change in fair value of debt instrument |
|
|
— |
|
|
|
14,255 |
|
|
|
14,616 |
|
|
|
59,916 |
|
|
|
20,163 |
|
Change in fair value of warrant liabilities |
|
|
(10,312 |
) |
|
|
(515 |
) |
|
|
— |
|
|
|
(10,827 |
) |
|
|
— |
|
Forgiveness of Paycheck Protection Program loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,860 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable |
|
|
(145 |
) |
|
|
895 |
|
|
|
2,569 |
|
|
|
2,887 |
|
|
|
1,458 |
|
Other receivables |
|
|
(22,637 |
) |
|
|
(1,929 |
) |
|
|
(6,110 |
) |
|
|
(29,579 |
) |
|
|
(2,074 |
) |
Prepaid expenses and other current assets |
|
|
2,991 |
|
|
|
(2,090 |
) |
|
|
429 |
|
|
|
(4,868 |
) |
|
|
1,307 |
|
Other non-current assets |
|
|
(4,465 |
) |
|
|
403 |
|
|
|
119 |
|
|
|
(5,795 |
) |
|
|
604 |
|
Trade payables |
|
|
516 |
|
|
|
1,277 |
|
|
|
789 |
|
|
|
1,663 |
|
|
|
(3,126 |
) |
Accrued expenses |
|
|
5,146 |
|
|
|
5,398 |
|
|
|
(769 |
) |
|
|
10,946 |
|
|
|
3,537 |
|
Other current and long-term liabilities |
|
|
1,615 |
|
|
|
(374 |
) |
|
|
(1,103 |
) |
|
|
2,855 |
|
|
|
(1,943 |
) |
Net cash used in operating activities |
|
|
(34,099 |
) |
|
|
(37,445 |
) |
|
|
(19,616 |
) |
|
|
(126,001 |
) |
|
|
(48,354 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property and equipment |
|
|
(2,142 |
) |
|
|
(2,876 |
) |
|
|
(326 |
) |
|
|
(7,840 |
) |
|
|
(1,416 |
) |
Purchase of marketable securities |
|
|
112 |
|
|
|
(54,800 |
) |
|
|
— |
|
|
|
(54,688 |
) |
|
|
— |
|
Proceeds from sale of marketable securities |
|
|
5,000 |
|
|
|
5,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Proceeds from maturity of marketable securities |
|
|
156 |
|
|
|
30 |
|
|
|
— |
|
|
|
186 |
|
|
|
— |
|
Payment for asset acquisition |
|
|
— |
|
|
|
— |
|
|
|
(250 |
) |
|
|
(500 |
) |
|
|
(250 |
) |
Investment in equity method investee |
|
|
— |
|
|
|
— |
|
|
|
(2,490 |
) |
|
|
— |
|
|
|
(4,990 |
) |
Net cash used in investing activities |
|
|
3,126 |
|
|
|
(52,646 |
) |
|
|
(3,066 |
) |
|
|
(52,842 |
) |
|
|
(6,656 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from convertible loan notes |
|
|
— |
|
|
|
— |
|
|
|
23,067 |
|
|
|
76,723 |
|
|
|
51,781 |
|
Principal payments on long-term debt |
|
|
(5,000 |
) |
|
|
— |
|
|
|
27 |
|
|
|
(5,000 |
) |
|
|
(1,952 |
) |
Proceeds from issuance of ordinary shares |
|
|
— |
|
|
|
167,966 |
|
|
|
— |
|
|
|
167,966 |
|
|
|
1,961 |
|
Proceeds from Paycheck Protection Program loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,860 |
|
Proceeds from exercise of options |
|
|
563 |
|
|
|
86 |
|
|
|
22 |
|
|
|
932 |
|
|
|
42 |
|
Proceeds from the exercise of warrants |
|
|
— |
|
|
|
146 |
|
|
|
— |
|
|
|
379 |
|
|
|
7 |
|
Proceeds from issuance of warrants |
|
|
— |
|
|
|
— |
|
|
|
360 |
|
|
|
263 |
|
|
|
360 |
|
Debt issuance costs incurred |
|
|
— |
|
|
|
3,173 |
|
|
|
(494 |
) |
|
|
(383 |
) |
|
|
(494 |
) |
Transaction costs |
|
|
(2,995 |
) |
|
|
(41,484 |
) |
|
|
— |
|
|
|
(44,479 |
) |
|
|
— |
|
Principal payments on finance lease |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,231 |
) |
Net cash provided by financing activities |
|
|
(7,432 |
) |
|
|
129,887 |
|
|
|
22,982 |
|
|
|
196,401 |
|
|
|
53,334 |
|
Net increase (decrease) in cash and cash equivalents |
|
|
(38,405 |
) |
|
|
39,796 |
|
|
|
300 |
|
|
|
17,558 |
|
|
|
(1,676 |
) |
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period |
|
|
75,191 |
|
|
|
35,395 |
|
|
|
18,928 |
|
|
|
19,228 |
|
|
|
20,904 |
|
End of period |
|
$ |
36,786 |
|
|
$ |
75,191 |
|
|
$ |
19,228 |
|
|
$ |
36,786 |
|
|
$ |
19,228 |
|
Use of Non-GAAP Financial Measures
In addition to financial information presented in accordance with GAAP, this press release includes certain financial measures that are not prepared in accordance with generally accepted accounting principles in
The Company believes that presenting these non-GAAP financial measures provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. The Company uses these non-GAAP measures to help assess its operating performance and operating leverage in its business, analyze its financial results, establish operational goals, develop operating budgets, and make strategic decisions. The Company also believes that the presentation of these non-GAAP financial measures provides an additional tool for investors to use in comparing its core business and results of operations over multiple periods with other companies in its industry, many of which present similar non-GAAP financial measures to investors, and to help analyze the Company’s cash performance.
Other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies. Further, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. Accordingly, these non-GAAP financial measures should be considered as supplemental in nature, should not be considered as the sole measure of the Company’s performance, and are not intended to be construed, and should not be considered, in isolation from, or as a substitute for, the comparable or related financial information calculated in accordance with GAAP.
Adjusted EBITDA (unaudited, in thousands): |
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(14,707 |
) |
|
$ |
(57,972 |
) |
|
$ |
(33,324 |
) |
|
$ |
(168,013 |
) |
|
$ |
(80,277 |
) |
Interest expense, net |
|
|
2,868 |
|
|
|
1,587 |
|
|
|
116 |
|
|
|
4,781 |
|
|
|
189 |
|
Provision for income tax |
|
|
(141 |
) |
|
|
598 |
|
|
|
195 |
|
|
|
667 |
|
|
|
569 |
|
Depreciation and amortization |
|
|
1,412 |
|
|
|
1,229 |
|
|
|
692 |
|
|
|
4,640 |
|
|
|
2,787 |
|
EBITDA |
|
|
(10,568 |
) |
|
|
(54,558 |
) |
|
|
(32,321 |
) |
|
|
(157,925 |
) |
|
|
(76,732 |
) |
Non-capitalized transaction costs* |
|
|
83 |
|
|
|
3,214 |
|
|
|
2,070 |
|
|
|
4,337 |
|
|
|
3,611 |
|
Stock-based compensation |
|
|
6,157 |
|
|
|
2,155 |
|
|
|
2,178 |
|
|
|
12,013 |
|
|
|
8,043 |
|
Change in equity method investment |
|
|
(23 |
) |
|
|
(145 |
) |
|
|
333 |
|
|
|
323 |
|
|
|
1,274 |
|
Change in fair value of debt instruments |
|
|
— |
|
|
|
14,255 |
|
|
|
14,616 |
|
|
|
59,916 |
|
|
|
20,163 |
|
Change in fair value of warrants |
|
|
(10,312 |
) |
|
|
(515 |
) |
|
|
— |
|
|
|
(10,827 |
) |
|
|
— |
|
Forgiveness of PPP Loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,860 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
(14,663 |
) |
|
$ |
(35,594 |
) |
|
$ |
(13,124 |
) |
|
$ |
(95,023 |
) |
|
$ |
(43,641 |
) |
Non-GAAP Net Income (unaudited, in thousands): |
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(14,707 |
) |
|
$ |
(57,972 |
) |
|
$ |
(33,324 |
) |
|
$ |
(168,013 |
) |
|
$ |
(80,277 |
) |
Cost of revenue adjustment |
|
|
848 |
|
|
|
347 |
|
|
|
463 |
|
|
|
1,825 |
|
|
|
2,271 |
|
Selling, general and administrative adjustment |
|
|
2,284 |
|
|
|
4,132 |
|
|
|
2,630 |
|
|
|
9,108 |
|
|
|
5,826 |
|
Research and development adjustment |
|
|
4,520 |
|
|
|
2,119 |
|
|
|
1,847 |
|
|
|
10,057 |
|
|
|
6,344 |
|
Non-GAAP Net Loss |
|
$ |
(7,055 |
) |
|
$ |
(51,374 |
) |
|
$ |
(28,384 |
) |
|
$ |
(147,023 |
) |
|
$ |
(65,836 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP net loss per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.46 |
) |
|
$ |
(0.79 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
|
127,355,926 |
|
|
|
107,633,037 |
|
|
|
83,652,056 |
|
|
|
100,917,939 |
|
|
|
83,457,400 |
|
Non-GAAP - Cost of Revenue (unaudited, in thousands): |
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue |
|
$ |
(326 |
) |
|
$ |
3,459 |
|
$ |
6,140 |
|
$ |
11,416 |
|
$ |
24,240 |
Adjustment: |
|
|
|
|
|
|
|
|
|
|
||||||
Stock-based compensation |
|
|
848 |
|
|
|
347 |
|
|
463 |
|
|
1,825 |
|
|
2,271 |
Non-GAAP cost of revenue |
|
$ |
(1,174 |
) |
|
$ |
3,112 |
|
$ |
5,677 |
|
$ |
9,591 |
|
$ |
21,969 |
Non-GAAP - Selling, General and Administrative Expenses (unaudited, in thousands): |
|
Three Months Ended |
|
Years Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
515 |
|
449 |
|
187 |
|
1,765 |
|
756 |
Stock-based compensation |
|
1,686 |
|
469 |
|
373 |
|
3,006 |
|
1,459 |
Non-capitalized transaction costs* |
|
83 |
|
3,214 |
|
2,070 |
|
4,337 |
|
3,611 |
Non-GAAP selling, general and administrative expenses |
|
|
|
|
|
|
|
|
|
14,434 |
Non-GAAP - Research and Development Expenses (unaudited, in thousands): |
|
Three Months Ended |
|
Years Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Research and development expenses |
|
$ |
12,624 |
|
$ |
26,418 |
|
$ |
8,893 |
|
$ |
72,573 |
|
$ |
35,900 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
|
897 |
|
|
780 |
|
|
505 |
|
|
2,875 |
|
|
2,031 |
Stock-based compensation |
|
|
3,623 |
|
|
1,339 |
|
|
1,342 |
|
|
7,182 |
|
|
4,313 |
Non-GAAP research and development expenses |
|
$ |
8,104 |
|
$ |
24,299 |
|
$ |
7,046 |
|
$ |
62,516 |
|
$ |
29,556 |
__________________
* Non-capitalized transaction costs include non-recurring expense related to the issuance of convertible loan notes and the Business Combination.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220308006224/en/
For
Media
Rainemakers
Telephone: +1 415-349-7432
Email: rockley-pr@rainemakers.com
Investors
Telephone: +1 626-995-0001
investors@rockleyphotonics.com
Source:
FAQ
What were Rockley Photonics' 2021 financial results?
What is the projected revenue for Rockley in 2022?
What new products were announced by Rockley?
How did Rockley's net loss change in Q4 2021?
