Rockley Photonics Reports Second Quarter of Fiscal 2022 Financial Results
Rockley Photonics (RKLY) announced a supply agreement and first commercial order for its Bioptx Baseline Band from a leading medtech company, with shipments expected in Q4 2022. The company also formed a partnership with a contract research organization to develop its biomarker sensing platform, further expanding its market opportunities. Financially, RKLY reported a revenue increase to $1.5 million for Q2 2022 but posted a net loss of $121.8 million. The company revised its 2022 revenue guidance to $5 - $10 million, eliminating all revenue from its datacom platform.
- Signed a supply agreement and received first commercial purchase order for Bioptx Baseline Band.
- Established partnership with a leading contract research organization for biomarker sensing platform development.
- Joined the Russell 3000 Index, enhancing market visibility.
- Net loss of $121.8 million in Q2 2022.
- Revised 2022 revenue guidance lowered to $5 - $10 million.
- Gross profit remains negative at $(0.8) million.
Signs Supply Agreement and Receives First Commercial Purchase Order from
Bolsters Board of
“I am proud of the progress we made in the second quarter. As we ramp towards commercial production, we have reached many of the milestones that we’ve been working towards and expect to reach many more in the coming months,” said Dr.
“There are many value creation opportunities ahead for
Business Highlights:
-
Signed Supply Agreement and Received First Commercial Purchase Order – Following the delivery of the initial production devices of its
Bioptx Baseline Band , the Company received its first commercial purchase order from a top 10, global medtech company.Rockley expects to ship the bands to the customer in the fourth quarter 2022, with volume production ramping in 2023.
-
Signed Partnership with Contract Research Organization (CRO), Opening a New Market for Bioptx™ – A top 10 CRO which provides full-service clinical development services to biopharmaceutical customers signed a partnership agreement withRockley to develop and evaluate its Bioptx biosensing wristband, cloud services, and other elements of its biomarker sensing platform, potentially integrating the health monitoring solutions into the CRO’s clinical research studies.
-
Named Renowned Healthcare Leader
Richard Kuntz , M.D.,M.Sc . to Board of Directors – World-class industry, clinical and research leaderDr. Kuntz joins Rockley’s board of directors, bringing a broad background in multiple areas of healthcare innovation. He served as Medtronic’s global chief medical and scientific officer and led its leading neuromodulation business. He founded and served as chief scientific officer of theHarvard Clinical Research Institute . He served as an interventional cardiologist at the Brigham and Women’s Hospital and on the faculty ofHarvard Medical School .
-
Established Scientific Advisory Board (SAB) of Prominent Scientists and Medical Experts –Rockley has assembled experts in therapies for diseases in the areas of diabetes and cardiology, as well as human hydration and fundamental spectroscopy to further the Company’s ongoing efforts to revolutionize wearable biosensing technology. TheSAB members will adviseRockley on its unique biosensing platform and provide input and guidance for Rockley’s efforts to realize the full potential of its biosensing platform for the consumer and medtech markets. The newly formedSAB will support Rockley’s mission of empowering people to make better-informed decisions about their health and well-being.
-
Joined Russell 3000® Index – The Company announced that it joined the broad-market Russell 3000® Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective
June 27, 2022 . The inclusion in the index is expected to enhance the Company’s visibility within the broader market and raise its profile in the wearables market.
- Entered Evaluation Phase of VitalSpex™ Pro Technology by Leading Consumer Wearables Customer – During the quarter, the Company announced that one of its tier-1 consumer wearables customers has begun an evaluation program using Rockley’s photonics-based sensing technology. The tier-1 customer adds to Rockley’s growing list of global consumer electronics manufacturers to receive shipments of Rockley’s VitalSpex Pro technology, which is expected to enable the non-invasive measurement of alcohol, glucose, and lactate from a wrist-worn device.
Guidance:
-
Revised 2022 Revenue Guidance – The Company expects to generate core product revenue of
$5 $10 million Rockley has removed all revenue from datacom platform monetization in its revised guidance for 2022. Expenses related to the datacom asset have been eliminated, and the impact of datacom and other expense reductions is expected to be cash flow neutral.
- 2023 Revenue Guidance – Previous information provided for 2023 is not reflective of management’s current views of 2023 as the Company continues to evolve its business and financial model. The Company intends to provide its 2023 revenue guidance in the future.
Second Quarter of Fiscal Year 2022 Financial Highlights:
(in millions except per share) |
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
$ |
1.5 |
|
|
$ |
1.0 |
|
|
$ |
2.2 |
|
|
$ |
2.5 |
|
|
$ |
4.0 |
|
Gross profit |
$ |
(0.8 |
) |
|
$ |
(2.4 |
) |
|
$ |
(2.4 |
) |
|
$ |
(3.2 |
) |
|
$ |
(4.3 |
) |
SG&A expense |
$ |
21.2 |
|
|
$ |
10.9 |
|
|
$ |
6.7 |
|
|
$ |
32.1 |
|
|
$ |
14.0 |
|
R&D expense |
$ |
26.3 |
|
|
$ |
24.8 |
|
|
$ |
17.6 |
|
|
$ |
51.1 |
|
|
$ |
33.5 |
|
Net loss |
$ |
(121.8 |
) |
|
$ |
(41.8 |
) |
|
$ |
(30.6 |
) |
|
$ |
(163.6 |
) |
|
$ |
(95.3 |
) |
Net loss per share |
$ |
(0.94 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.27 |
) |
|
$ |
(1.13 |
) |
Cash, cash equivalents, and investments at period end |
$ |
46.6 |
|
|
$ |
36.4 |
|
|
$ |
35.4 |
|
|
$ |
46.6 |
|
|
$ |
35.4 |
|
Cash used in operations |
$ |
(41.2 |
) |
|
$ |
(38.8 |
) |
|
$ |
(29.6 |
) |
|
$ |
(80.0 |
) |
|
$ |
(54.5 |
) |
Non-GAAP Financial Highlights:
SG&A expense |
$ |
9.0 |
|
|
$ |
9.5 |
|
|
$ |
5.8 |
|
|
$ |
18.6 |
|
|
$ |
11.3 |
|
R&D expense |
$ |
23.1 |
|
|
$ |
21.2 |
|
|
$ |
15.7 |
|
|
$ |
44.3 |
|
|
$ |
30.1 |
|
Net loss |
$ |
(106.3 |
) |
|
$ |
(36.2 |
) |
|
$ |
(27.4 |
) |
|
$ |
(142.6 |
) |
|
$ |
(88.6 |
) |
Net loss per share |
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.11 |
) |
|
$ |
(1.05 |
) |
Adjusted EBITDA |
$ |
(36.3 |
) |
|
$ |
(34.0 |
) |
|
$ |
(23.4 |
) |
|
$ |
(70.3 |
) |
|
$ |
(44.8 |
) |
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.
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 expectation that
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) risks related to the Company’s debt arrangements, restrictions on the Company’s operations contained in those debt arrangements and compliance with the terms thereof; (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 Company’s Annual Report on Form 10-K for the year ended 2021, and in other documents the Company files with the
Second Quarter 2022 Financial Results
|
|||||||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||||||
(Unaudited and in thousands, except share and per share amounts) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
$ |
1,505 |
|
|
$ |
962 |
|
|
$ |
2,195 |
|
|
$ |
2,467 |
|
|
$ |
3,966 |
|
Cost of revenue |
|
2,292 |
|
|
|
3,395 |
|
|
|
4,549 |
|
|
|
5,687 |
|
|
|
8,283 |
|
Gross profit |
|
(787 |
) |
|
|
(2,433 |
) |
|
|
(2,354 |
) |
|
|
(3,220 |
) |
|
|
(4,317 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general, and administrative expenses |
|
21,166 |
|
|
|
10,938 |
|
|
|
6,715 |
|
|
|
32,104 |
|
|
|
14,020 |
|
Research and development expenses |
|
26,299 |
|
|
|
24,802 |
|
|
|
17,551 |
|
|
|
51,101 |
|
|
|
33,531 |
|
Total operating expenses |
|
47,465 |
|
|
|
35,740 |
|
|
|
24,266 |
|
|
|
83,205 |
|
|
|
47,551 |
|
Loss from operations |
|
(48,252 |
) |
|
|
(38,173 |
) |
|
|
(26,620 |
) |
|
|
(86,425 |
) |
|
|
(51,868 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||||||||
Other expense |
|
(155 |
) |
|
|
(14 |
) |
|
|
2,860 |
|
|
|
(169 |
) |
|
|
2,860 |
|
Interest expense, net |
|
(4,514 |
) |
|
|
(2,653 |
) |
|
|
(179 |
) |
|
|
(7,167 |
) |
|
|
(326 |
) |
Gain (loss) on equity method investment |
|
(169 |
) |
|
|
207 |
|
|
|
(597 |
) |
|
|
38 |
|
|
|
(760 |
) |
Change in fair value of debt instruments |
|
(47,579 |
) |
|
|
— |
|
|
|
(6,008 |
) |
|
|
(47,579 |
) |
|
|
(45,661 |
) |
Change in fair value of warrant liabilities |
|
(18,219 |
) |
|
|
211 |
|
|
|
— |
|
|
|
(18,008 |
) |
|
|
— |
|
(Loss) gain on foreign currency |
|
(3,417 |
) |
|
|
(1,228 |
) |
|
|
97 |
|
|
|
(4,645 |
) |
|
|
631 |
|
Total other income (expense) |
|
(74,053 |
) |
|
|
(3,477 |
) |
|
|
(3,827 |
) |
|
|
(77,530 |
) |
|
|
(43,256 |
) |
Loss before income taxes |
|
(122,305 |
) |
|
|
(41,650 |
) |
|
|
(30,447 |
) |
|
|
(163,955 |
) |
|
|
(95,124 |
) |
Provision for income tax (benefit) |
|
(468 |
) |
|
|
131 |
|
|
|
110 |
|
|
|
(337 |
) |
|
|
210 |
|
Net loss |
$ |
(121,837 |
) |
|
$ |
(41,781 |
) |
|
$ |
(30,557 |
) |
|
$ |
(163,618 |
) |
|
$ |
(95,334 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.94 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.27 |
) |
|
$ |
(1.13 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
129,341,861 |
|
|
|
128,443,050 |
|
|
|
84,247,703 |
|
|
|
128,894,938 |
|
|
|
84,066,648 |
|
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited and in thousands, except share amounts and par value) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
38,772 |
|
|
$ |
36,786 |
|
Short-term investments |
|
7,826 |
|
|
|
26,965 |
|
Accounts receivable, net of allowance of |
|
1,466 |
|
|
|
1,359 |
|
Other receivables, net of allowance of |
|
48,127 |
|
|
|
47,462 |
|
Prepaid expenses and other current assets |
|
6,259 |
|
|
|
6,802 |
|
Total current assets |
|
102,450 |
|
|
|
119,374 |
|
Long-term investments |
|
— |
|
|
|
17,659 |
|
Property and equipment, net |
|
10,161 |
|
|
|
10,187 |
|
Equity method investment |
|
5,060 |
|
|
|
4,879 |
|
Intangible assets, net |
|
3,048 |
|
|
|
3,048 |
|
Other non-current assets |
|
8,191 |
|
|
|
7,683 |
|
Total assets |
$ |
128,910 |
|
|
$ |
162,830 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity (Deficit) |
|
|
|
||||
Current liabilities |
|
|
|
||||
Trade payables |
$ |
8,730 |
|
|
$ |
6,882 |
|
Accrued expenses |
|
15,730 |
|
|
|
17,360 |
|
Debt, current portion |
|
— |
|
|
|
26,312 |
|
Other current liabilities |
|
1,577 |
|
|
|
1,238 |
|
Total current liabilities |
|
26,037 |
|
|
|
51,792 |
|
Long-term debt, net of current portion |
|
97,561 |
|
|
|
— |
|
Warrant liabilities |
|
52,189 |
|
|
|
3,477 |
|
Other long-term liabilities |
|
3,588 |
|
|
|
3,743 |
|
Total liabilities |
|
179,375 |
|
|
|
59,012 |
|
|
|
|
|
||||
Shareholders’ equity (deficit) |
|
|
|
||||
Ordinary shares, |
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
514,225 |
|
|
|
504,714 |
|
Accumulated other comprehensive loss |
|
(176 |
) |
|
|
— |
|
Accumulated deficit |
|
(564,514 |
) |
|
|
(400,896 |
) |
Total shareholders’ equity (deficit) |
|
(50,465 |
) |
|
|
103,818 |
|
Total liabilities and shareholders’ equity (deficit) |
$ |
128,910 |
|
|
$ |
162,830 |
|
|
||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss |
|
$ |
(121,837 |
) |
|
$ |
(41,781 |
) |
|
$ |
(30,557 |
) |
|
$ |
(163,618 |
) |
|
$ |
(95,334 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
|
1,581 |
|
|
|
1,504 |
|
|
|
1,069 |
|
|
|
3,085 |
|
|
|
1,999 |
|
(Reversal) bad debt expense |
|
|
— |
|
|
|
(141 |
) |
|
|
— |
|
|
|
(141 |
) |
|
|
377 |
|
Accretion of marketable securities to redemption value |
|
|
(35 |
) |
|
|
(74 |
) |
|
|
— |
|
|
|
(109 |
) |
|
|
— |
|
Net realized loss on sale of marketable securities |
|
|
(155 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
(168 |
) |
|
|
— |
|
Stock-based compensation |
|
|
3,948 |
|
|
|
4,029 |
|
|
|
1,976 |
|
|
|
7,977 |
|
|
|
3,701 |
|
Change in equity-method investment |
|
|
153 |
|
|
|
(334 |
) |
|
|
604 |
|
|
|
(181 |
) |
|
|
491 |
|
Change in fair value of debt instrument |
|
|
47,579 |
|
|
|
— |
|
|
|
6,008 |
|
|
|
47,579 |
|
|
|
45,661 |
|
Change in fair value of warrant liabilities |
|
|
18,219 |
|
|
|
(211 |
) |
|
|
— |
|
|
|
18,008 |
|
|
|
— |
|
Forgiveness of Paycheck Protection Program loan |
|
|
— |
|
|
|
— |
|
|
|
(2,860 |
) |
|
|
— |
|
|
|
(2,860 |
) |
Non-cash interest on convertible loan notes |
|
|
484 |
|
|
|
— |
|
|
|
— |
|
|
|
484 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable |
|
|
(636 |
) |
|
|
529 |
|
|
|
(106 |
) |
|
|
(107 |
) |
|
|
2,137 |
|
Other receivables |
|
|
1,122 |
|
|
|
(1,646 |
) |
|
|
(2,644 |
) |
|
|
(524 |
) |
|
|
(5,013 |
) |
Prepaid expenses and other current assets |
|
|
490 |
|
|
|
53 |
|
|
|
(63 |
) |
|
|
543 |
|
|
|
(5,769 |
) |
Other non-current assets |
|
|
(557 |
) |
|
|
49 |
|
|
|
(236 |
) |
|
|
(508 |
) |
|
|
(1,733 |
) |
Trade payables |
|
|
4,542 |
|
|
|
(2,805 |
) |
|
|
(2,102 |
) |
|
|
1,737 |
|
|
|
(130 |
) |
Accrued expenses |
|
|
3,564 |
|
|
|
2,223 |
|
|
|
(441 |
) |
|
|
5,787 |
|
|
|
402 |
|
Other current and long-term liabilities |
|
|
359 |
|
|
|
(175 |
) |
|
|
(206 |
) |
|
|
184 |
|
|
|
1,614 |
|
Net cash used in operating activities |
|
|
(41,179 |
) |
|
|
(38,793 |
) |
|
|
(29,558 |
) |
|
|
(79,972 |
) |
|
|
(54,457 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property and equipment |
|
|
(1,935 |
) |
|
|
(1,010 |
) |
|
|
(2,109 |
) |
|
|
(2,945 |
) |
|
|
(2,822 |
) |
Purchase of marketable securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Proceeds from sale and maturities of marketable securities |
|
|
16,996 |
|
|
|
19,903 |
|
|
|
— |
|
|
|
36,899 |
|
|
|
— |
|
Purchase of asset acquisition |
|
|
— |
|
|
|
— |
|
|
|
(500 |
) |
|
|
— |
|
|
|
(500 |
) |
Net cash provided by (used in) investing activities |
|
|
15,061 |
|
|
|
18,893 |
|
|
|
(2,609 |
) |
|
|
33,954 |
|
|
|
(3,322 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from convertible loan notes |
|
|
80,685 |
|
|
|
— |
|
|
|
— |
|
|
|
80,685 |
|
|
|
76,723 |
|
Principal payments on long-term debt |
|
|
(21,316 |
) |
|
|
(4,995 |
) |
|
|
— |
|
|
|
(26,311 |
) |
|
|
— |
|
Proceeds from exercise of options |
|
|
516 |
|
|
|
579 |
|
|
|
146 |
|
|
|
1,095 |
|
|
|
283 |
|
Proceeds from exercise of warrants |
|
|
— |
|
|
|
— |
|
|
|
233 |
|
|
|
— |
|
|
|
233 |
|
Proceeds from issuance of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
263 |
|
Debt issuance costs incurred |
|
|
— |
|
|
|
— |
|
|
|
(2,416 |
) |
|
|
— |
|
|
|
(3,556 |
) |
Transaction costs |
|
|
(6,858 |
) |
|
|
(248 |
) |
|
|
— |
|
|
|
(7,106 |
) |
|
|
— |
|
Withheld taxes paid on behalf of employees on net settled stock-based awards |
|
|
— |
|
|
|
(359 |
) |
|
|
— |
|
|
|
(359 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
|
53,027 |
|
|
|
(5,023 |
) |
|
|
(2,037 |
) |
|
|
48,004 |
|
|
|
73,946 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
26,909 |
|
|
|
(24,923 |
) |
|
|
(34,204 |
) |
|
|
1,986 |
|
|
|
16,167 |
|
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning of period |
|
|
11,863 |
|
|
|
36,786 |
|
|
|
69,599 |
|
|
|
36,786 |
|
|
|
19,228 |
|
End of period |
|
$ |
38,772 |
|
|
$ |
11,863 |
|
|
$ |
35,395 |
|
|
$ |
38,772 |
|
|
$ |
35,395 |
|
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
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(121,837 |
) |
|
$ |
(41,781 |
) |
|
$ |
(30,557 |
) |
|
$ |
(163,618 |
) |
|
$ |
(95,334 |
) |
Interest expense, net |
|
|
4,514 |
|
|
|
2,653 |
|
|
|
179 |
|
|
|
7,167 |
|
|
|
326 |
|
Provision for income tax (benefit) |
|
|
(468 |
) |
|
|
131 |
|
|
|
110 |
|
|
|
(337 |
) |
|
|
210 |
|
Depreciation and amortization |
|
|
1,581 |
|
|
|
1,504 |
|
|
|
1,069 |
|
|
|
3,085 |
|
|
|
1,999 |
|
EBITDA |
|
|
(116,210 |
) |
|
|
(37,493 |
) |
|
|
(29,199 |
) |
|
|
(153,703 |
) |
|
|
(92,799 |
) |
Non-capitalized transaction costs* |
|
|
9,988 |
|
|
|
— |
|
|
|
79 |
|
|
|
9,988 |
|
|
|
1,040 |
|
Stock-based compensation |
|
|
3,948 |
|
|
|
4,029 |
|
|
|
1,976 |
|
|
|
7,977 |
|
|
|
3,701 |
|
Change in equity method investment |
|
|
153 |
|
|
|
(334 |
) |
|
|
604 |
|
|
|
(181 |
) |
|
|
491 |
|
Change in fair value of debt instruments |
|
|
47,579 |
|
|
|
— |
|
|
|
6,008 |
|
|
|
47,579 |
|
|
|
45,661 |
|
Change in fair value of warrant liabilities |
|
|
18,219 |
|
|
|
(211 |
) |
|
|
— |
|
|
|
18,008 |
|
|
|
— |
|
Forgiveness of PPP Loan |
|
|
— |
|
|
|
— |
|
|
|
(2,860 |
) |
|
|
— |
|
|
|
(2,860 |
) |
Adjusted EBITDA |
|
$ |
(36,323 |
) |
|
$ |
(34,009 |
) |
|
$ |
(23,392 |
) |
|
$ |
(70,332 |
) |
|
$ |
(44,766 |
) |
Non-GAAP Net Income
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(121,837 |
) |
|
$ |
(41,781 |
) |
|
$ |
(30,557 |
) |
|
$ |
(163,618 |
) |
|
$ |
(95,334 |
) |
Cost of revenue adjustment |
|
|
166 |
|
|
|
508 |
|
|
|
363 |
|
|
|
675 |
|
|
|
631 |
|
Selling, general and administrative adjustment |
|
|
12,133 |
|
|
|
1,410 |
|
|
|
945 |
|
|
|
13,543 |
|
|
|
2,692 |
|
Research and development adjustment |
|
|
3,218 |
|
|
|
3,615 |
|
|
|
1,816 |
|
|
|
6,832 |
|
|
|
3,417 |
|
Non-GAAP Net Loss |
|
$ |
(106,320 |
) |
|
$ |
(36,248 |
) |
|
$ |
(27,433 |
) |
|
$ |
(142,568 |
) |
|
$ |
(88,594 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP net loss per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.33 |
) |
|
$ |
(1.11 |
) |
|
$ |
(1.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
|
129,341,861 |
|
|
|
128,443,050 |
|
|
|
84,247,703 |
|
|
|
128,894,938 |
|
|
|
84,066,648 |
|
Non-GAAP - Cost of Revenue
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of revenue |
|
$ |
2,292 |
|
$ |
3,395 |
|
$ |
4,549 |
|
$ |
5,687 |
|
$ |
8,283 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
|
166 |
|
|
508 |
|
|
363 |
|
|
675 |
|
|
631 |
Non-GAAP Cost of revenue |
|
$ |
2,126 |
|
$ |
2,887 |
|
$ |
4,186 |
|
$ |
5,012 |
|
$ |
7,652 |
Non-GAAP - Selling, General and Administrative Expenses
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling, general, and administrative expenses |
|
$ |
21,166 |
|
$ |
10,938 |
|
$ |
6,715 |
|
$ |
32,104 |
|
$ |
14,020 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
|
570 |
|
|
561 |
|
|
424 |
|
|
1,131 |
|
|
801 |
Stock-based compensation |
|
|
1,575 |
|
|
849 |
|
|
442 |
|
|
2,424 |
|
|
851 |
Non-capitalized transaction costs* |
|
|
9,988 |
|
|
— |
|
|
79 |
|
|
9,988 |
|
|
1,040 |
Non-GAAP selling, general and administrative expenses |
|
$ |
9,033 |
|
$ |
9,528 |
|
$ |
5,770 |
|
$ |
18,561 |
|
$ |
11,328 |
Non-GAAP - Research and Development Expenses
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Research and development expenses |
|
$ |
26,299 |
|
$ |
24,802 |
|
$ |
17,551 |
|
$ |
51,101 |
|
$ |
33,531 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization |
|
|
1,011 |
|
|
943 |
|
|
645 |
|
|
1,954 |
|
|
1,198 |
Stock-based compensation |
|
|
2,207 |
|
|
2,672 |
|
|
1,171 |
|
|
4,878 |
|
|
2,219 |
Non-GAAP research and development expenses |
|
$ |
23,081 |
|
$ |
21,187 |
|
$ |
15,735 |
|
$ |
44,269 |
|
$ |
30,114 |
* |
Non-capitalized transaction costs include non-recurring expense related to the issuance of convertible loan notes in 2022, 2021 and the Business Combination. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220811005665/en/
Media
Rainemakers
Telephone: +1 415-349-7432
Email: rockley-pr@rainemakers.com
Investors
Telephone: +1 626-995-0001
Email: investors@rockleyphotonics.com
Source:
FAQ
What is Rockley Photonics' revenue for Q2 2022?
What is the revised revenue guidance for Rockley in 2022?
What significant agreements did Rockley announce in August 2022?
What was Rockley Photonics' net loss for Q2 2022?
What new partnerships did Rockley form recently?
