Rockley Photonics Reports Third Quarter 2021 Financial Results
Rockley Photonics Holdings Limited (NYSE: RKLY) reported revenue of $1.8 million for Q3 2021, down from $2.2 million in Q2. The company has a backlog of $23.0 million and completed its business combination with SC Health. Major partnerships were signed with top consumer electronics and medtech firms, enhancing its VitalSpex™ biomarker sensing platform. However, Rockley recorded a GAAP net loss of $58.0 million and cash used in operations increased to $37.4 million. The company maintains $125.0 million in cash and investments as of September 30, 2021.
- Backlog of $23.0 million indicates strong future revenue potential.
- New partnerships with tier-1 consumer electronics and medtech companies enhance market position.
- Improved response to VitalSpex™ platform suggests customer validation in healthcare applications.
- Revenue decreased from $2.2 million in Q2 to $1.8 million in Q3.
- GAAP net loss increased to $58.0 million from $30.6 million in the prior quarter.
- Cash used in operations rose to $37.4 million, indicating higher operational costs.
Revenue of
Broadened and accelerated commercial opportunities for VitalSpex™, Rockley’s end-to-end non-invasive biomarker sensing platform, by signing multiple partnerships across key markets, including tier-1 consumer electronics manufacturers, global medtech companies, and leading healthcare research institutions
“I’m very excited about our progress in the third quarter as our product development and commercial activities exceeded internal expectations. Rockley’s VitalSpex™ biomarker sensing platform has been well-received by our customers in both the consumer and medtech markets, we’ve signed new agreements with a wide range of partners, and we continue to make substantial progress with our ongoing human studies toward optimizing our biomarker algorithms,” said Dr.
“We strengthened our balance sheet with the completion of our business combination and our financing arrangement with
Business Highlights:
-
Completed its business combination with
SC Health onAugust 11, 2021 , and commenced trading on the NYSE under the ticker “RKLY” onAugust 12, 2021 - Extended the Company’s leadership in providing biosensing solutions for the consumer electronics market with the addition of five global consumer electronics companies, bringing its total to six of the top ten consumer wearables manufacturers, and reducing the Company’s exposure to any single customer
-
Expanded and accelerated its commercial strategy in medical devices and healthcare by signing multi-year partnerships with two of the world’s top-ten medical equipment and device manufacturers, enabling
Rockley to evaluate and incorporate the next generation of non-invasive biomarker sensing technology into a range of medical device applications - Based on increased healthcare customer demand, began to scale up capacity for high-volume production of stand-alone wearable devices, including full-stack data analytics solutions, for widescale human studies, remote patient monitoring, and diagnostic and treatment support
-
Entered into a research partnership with the
California Institute of Technology (Caltech ) to collaborate on the development of next-generation solutions that combine advanced sensors with AI to enhance insights into health and well-being - Completed preliminary stages of multiple human studies using Rockley’s wearable wristband, producing encouraging results across a range of biomarkers and refining the overall performance of the VitalSpex sensing platform
- Began the qualification process of a second source for its silicon photonics chip supply, putting it on track to qualify in the first quarter 2022
-
Retired all convertible notes and expect to retire the remaining debt obligation of
$28.6 million -
Signed financing agreement with
Lincoln Park Capital , providing an equity line of credit of up to$50 million
Third Quarter 2021 Financial Highlights:
-
Revenue of
$1.8 million $2.2 million -
Gross profit of
$(1.6) million $(2.4) million -
GAAP selling, general, and administrative expenses of
$13.6 million $6.7 million $9.4 million $5.8 million -
GAAP research and development expenses of
$26.4 million $17.6 million $24.3 million $15.7 million -
GAAP net loss of
$58.0 million $0.54 $30.6 million $0.36 $51.4 million $0.48 $27.4 million $0.33 -
Adjusted EBITDA totaled
$(35.6) million $(23.4) million -
Cash, cash equivalents and investments of
$125.0 million September 30, 2021 -
Cash used in operations of
$37.4 million $29.6 million
A reconciliation of GAAP financial measures to Adjusted EBITDA (Non-GAAP) financial measures is included in the financial statement tables included in this press release.
Conference Call Information
The
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 Lincoln Park; (d) the status and timing of the Company’s qualification of a second source for its silicon photonics chip supply; (e) backlog; (f) the anticipated and potential features, scope, goals, and benefits of the Company’s platform, products, technology, and partnerships with third parties; (g) the Company’s continued development of a range of photonic integrated circuits and associated modules, sensors, and full-stack solutions; (h) Rockley’s belief that photonics will eventually become as pervasive as micro-electronics; and (i) Rockley’s potential to support hyper-scale manufacturing, address a multitude of high-volume markets, and deliver the complex optical systems required to bring transformational products to market.
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
Third Quarter 2021 Financial Results
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited and in thousands, except share and per share amounts) |
||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
1,839 |
|
|
|
$ |
2,195 |
|
|
|
$ |
4,517 |
|
|
|
$ |
5,805 |
|
|
|
$ |
19,061 |
|
|
Cost of revenue |
3,459 |
|
|
|
4,549 |
|
|
|
5,015 |
|
|
|
11,742 |
|
|
|
18,100 |
|
|
|||||
Gross profit |
(1,620 |
) |
|
|
(2,354 |
) |
|
|
(498 |
) |
|
|
(5,937 |
) |
|
|
961 |
|
|
|||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Selling, general and administrative expenses |
13,568 |
|
|
|
6,715 |
|
|
|
5,354 |
|
|
|
27,588 |
|
|
|
12,603 |
|
|
|||||
Research and development expenses |
26,418 |
|
|
|
17,551 |
|
|
|
10,790 |
|
|
|
59,949 |
|
|
|
27,007 |
|
|
|||||
Total operating expenses |
39,986 |
|
|
|
24,266 |
|
|
|
16,144 |
|
|
|
87,537 |
|
|
|
39,610 |
|
|
|||||
Loss from operations |
(41,606 |
) |
|
|
(26,620 |
) |
|
|
(16,642 |
) |
|
|
(93,474 |
) |
|
|
(38,649 |
) |
|
|||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Forgiveness of PPP loan |
— |
|
|
|
2,860 |
|
|
|
— |
|
|
|
2,860 |
|
|
|
— |
|
|
|||||
Interest expense, net |
(1,587 |
) |
|
|
(179 |
) |
|
|
1 |
|
|
|
(1,913 |
) |
|
|
(73 |
) |
|
|||||
Equity method investment loss |
40 |
|
|
|
(597 |
) |
|
|
(689 |
) |
|
|
(720 |
) |
|
|
(941 |
) |
|
|||||
Change in fair value of debt instruments |
(14,255 |
) |
|
|
(6,008 |
) |
|
|
(3,325 |
) |
|
|
(59,916 |
) |
|
|
(5,547 |
) |
|
|||||
Change in fair value of warrant liabilities |
515 |
|
|
|
— |
|
|
|
— |
|
|
|
515 |
|
|
|
— |
|
|
|||||
Gain (loss) on foreign currency |
(481 |
) |
|
|
97 |
|
|
|
285 |
|
|
|
150 |
|
|
|
(1,369 |
) |
|
|||||
Total other income (expense) |
(15,768 |
) |
|
|
(3,827 |
) |
|
|
(3,728 |
) |
|
|
(59,024 |
) |
|
|
(7,930 |
) |
|
|||||
Loss before income taxes |
(57,374 |
) |
|
|
(30,447 |
) |
|
|
(20,370 |
) |
|
|
(152,498 |
) |
|
|
(46,579 |
) |
|
|||||
Provision for income tax |
598 |
|
|
|
110 |
|
|
|
154 |
|
|
|
808 |
|
|
|
374 |
|
|
|||||
Net loss and comprehensive loss |
$ |
(57,972 |
) |
|
|
$ |
(30,557 |
) |
|
|
$ |
(20,524 |
) |
|
|
$ |
(153,306 |
) |
|
|
$ |
(46,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net loss per share: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic and diluted |
$ |
(0.54 |
) |
|
|
$ |
(0.36 |
) |
|
|
$ |
(0.25 |
) |
|
|
$ |
(1.67 |
) |
|
|
$ |
(0.56 |
) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|||||||||||||||
Basic and diluted |
107,633,037 |
|
|
|
84,247,703 |
|
|
|
83,509,920 |
|
|
|
92,008,435 |
|
|
|
83,392,042 |
|
|
|||||
Condensed Consolidated Balance Sheets (in thousands, except share amounts and par value) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
75,191 |
|
|
$ |
19,228 |
|
Short-term investments, at fair value |
29,317 |
|
|
— |
|
||
Accounts receivable |
1,516 |
|
|
4,925 |
|
||
Other receivables |
24,966 |
|
|
18,024 |
|
||
Prepaid expenses |
9,815 |
|
|
1,605 |
|
||
Other current assets |
4 |
|
|
609 |
|
||
Total current assets |
140,809 |
|
|
44,391 |
|
||
Long-term investments, at fair value |
20,485 |
|
|
— |
|
||
Property, equipment, and finance lease right-of-use assets, net |
9,358 |
|
|
6,182 |
|
||
Equity method investment |
4,856 |
|
|
5,202 |
|
||
Intangible assets, net |
3,048 |
|
|
3,048 |
|
||
Other non-current assets |
3,069 |
|
|
1,607 |
|
||
Total assets |
$ |
181,625 |
|
|
$ |
60,430 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity (Deficit) |
|
|
|
||||
Current liabilities |
|
|
|
||||
Trade payables |
$ |
6,266 |
|
|
$ |
4,413 |
|
Accrued expenses |
16,121 |
|
|
10,395 |
|
||
Debt, current portion |
28,590 |
|
|
— |
|
||
Other current liabilities |
923 |
|
|
998 |
|
||
Total current liabilities |
51,900 |
|
|
15,806 |
|
||
Long-term debt, net of current portion |
— |
|
|
74,804 |
|
||
Warrant liabilities |
13,789 |
|
|
— |
|
||
Other long-term liabilities |
2,442 |
|
|
1,127 |
|
||
Total liabilities |
$ |
68,131 |
|
|
$ |
91,737 |
|
|
|
|
|
||||
Shareholders’ equity (deficit) |
|
|
|
||||
Ordinary shares, |
— |
|
|
— |
|
||
Additional paid-in-capital |
499,683 |
|
|
201,576 |
|
||
Accumulated deficit |
(386,189 |
) |
|
(232,883 |
) |
||
Total shareholders’ equity (deficit) |
113,494 |
|
|
(31,307 |
) |
||
Total liabilities and shareholders’ equity (deficit) |
$ |
181,625 |
|
|
$ |
60,430 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited and in thousands) |
|||||||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
|
$ |
(57,972 |
) |
|
$ |
(30,557 |
) |
|
|
$ |
(20,524 |
) |
|
$ |
(153,306 |
) |
|
$ |
(46,953 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation and amortization of property, equipment and finance lease right-of-use assets |
|
1,229 |
|
|
1,069 |
|
|
|
700 |
|
|
3,228 |
|
|
2,095 |
|
|||||
Amortization of debt issuance costs |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
26 |
|
|||||
Gain on disposal of property and equipment |
|
— |
|
|
— |
|
|
|
26 |
|
|
— |
|
|
(98 |
) |
|||||
Bad debt expense |
|
— |
|
|
— |
|
|
|
— |
|
|
377 |
|
|
— |
|
|||||
Accretion of marketable securities to redemption value |
|
(32 |
) |
|
— |
|
|
|
— |
|
|
(32 |
) |
|
— |
|
|||||
Stock-based compensation |
|
2,155 |
|
|
1,976 |
|
|
|
1,676 |
|
|
5,856 |
|
|
5,865 |
|
|||||
Change in equity-method investment |
|
(145 |
) |
|
604 |
|
|
|
689 |
|
|
346 |
|
|
941 |
|
|||||
Change in fair value of debt instrument |
|
14,255 |
|
|
6,008 |
|
|
|
3,325 |
|
|
59,916 |
|
|
5,547 |
|
|||||
Change in fair value of warrant liabilities |
|
(515 |
) |
|
— |
|
|
|
— |
|
|
(515 |
) |
|
— |
|
|||||
Forgiveness of Paycheck Protection Program loan |
|
— |
|
|
(2,860 |
) |
|
|
— |
|
|
(2,860 |
) |
|
— |
|
|||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accounts receivable |
|
895 |
|
|
(106 |
) |
|
|
271 |
|
|
3,032 |
|
|
(1,111 |
) |
|||||
Other receivables |
|
(1,929 |
) |
|
(2,644 |
) |
|
|
(4,566 |
) |
|
(6,942 |
) |
|
4,036 |
|
|||||
Prepaid expenses and other current assets |
|
(2,090 |
) |
|
(63 |
) |
|
|
(385 |
) |
|
(7,859 |
) |
|
878 |
|
|||||
Other non-current assets |
|
403 |
|
|
(236 |
) |
|
|
128 |
|
|
(1,330 |
) |
|
485 |
|
|||||
Trade payables |
|
1,277 |
|
|
(2,102 |
) |
|
|
432 |
|
|
1,147 |
|
|
(3,915 |
) |
|||||
Accrued expenses |
|
5,398 |
|
|
(441 |
) |
|
|
2,598 |
|
|
5,800 |
|
|
4,306 |
|
|||||
Other current and long-term liabilities |
|
(374 |
) |
|
(206 |
) |
|
|
(2 |
) |
|
1,240 |
|
|
(840 |
) |
|||||
Net cash used in operating activities |
|
(37,445 |
) |
|
(29,558 |
) |
|
|
(15,632 |
) |
|
(91,902 |
) |
|
(28,738 |
) |
|||||
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Purchase of property and equipment |
|
(2,876 |
) |
|
(2,109 |
) |
|
|
(440 |
) |
|
(5,698 |
) |
|
(1,090 |
) |
|||||
Purchase of marketable securities |
|
(54,800 |
) |
|
— |
|
|
|
— |
|
|
(54,800 |
) |
|
— |
|
|||||
Proceeds from sale of marketable securities |
|
5,000 |
|
|
— |
|
|
|
— |
|
|
5,000 |
|
|
— |
|
|||||
Proceeds from maturity of marketable securities |
|
30 |
|
|
— |
|
|
|
— |
|
|
30 |
|
|
— |
|
|||||
Payment for asset acquisition |
|
— |
|
|
(500 |
) |
|
|
— |
|
|
(500 |
) |
|
— |
|
|||||
Investment in equity method investee |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(2,500 |
) |
|||||
Net cash used in investing activities |
|
(52,646 |
) |
|
(2,609 |
) |
|
|
(440 |
) |
|
(55,968 |
) |
|
(3,590 |
) |
|||||
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Proceeds from convertible loan notes |
|
— |
|
|
— |
|
|
|
16,464 |
|
|
76,723 |
|
|
28,714 |
|
|||||
Principal payments on long-term debt |
|
— |
|
|
— |
|
|
|
(27 |
) |
|
— |
|
|
(1,979 |
) |
|||||
Proceeds from issuance of ordinary shares, net of issuance costs |
|
167,966 |
|
|
— |
|
|
|
— |
|
|
167,966 |
|
|
1,961 |
|
|||||
Proceeds from Paycheck Protection Program loan |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
2,860 |
|
|||||
Proceeds from exercise of options |
|
86 |
|
|
146 |
|
|
|
— |
|
|
369 |
|
|
20 |
|
|||||
Proceeds from the exercise of warrants |
|
146 |
|
|
233 |
|
|
|
— |
|
|
379 |
|
|
7 |
|
|||||
Proceeds from issuance of warrants |
|
— |
|
|
— |
|
|
|
— |
|
|
263 |
|
|
— |
|
|||||
Debt issuance costs incurred |
|
3,173 |
|
|
(2,416 |
) |
|
|
— |
|
|
(383 |
) |
|
— |
|
|||||
Transaction costs |
|
(41,484 |
) |
|
— |
|
|
|
— |
|
|
(41,484 |
) |
|
— |
|
|||||
Principal payments on finance lease |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(1,231 |
) |
|||||
Net cash provided by (used in) financing activities |
|
129,887 |
|
|
(2,037 |
) |
|
|
16,437 |
|
|
203,833 |
|
|
30,352 |
|
|||||
Net increase (decrease) in cash and cash equivalents |
|
39,796 |
|
|
(34,204 |
) |
|
|
365 |
|
|
55,963 |
|
|
(1,976 |
) |
|||||
Cash and cash equivalents: |
|
|
|
|
|
|
|
|
|
|
|||||||||||
Beginning of period |
|
35,395 |
|
|
69,599 |
|
|
|
18,563 |
|
|
19,228 |
|
|
20,904 |
|
|||||
End of period |
|
$ |
75,191 |
|
|
$ |
35,395 |
|
|
|
$ |
18,928 |
|
|
$ |
75,191 |
|
|
$ |
18,928 |
|
Use of Non-GAAP Financial Measures
This press release references 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.
These limitations of the non-GAAP financial measures presented in this press release include the following:
- Adjusted EBITDA: (i) The exclusion of certain recurring, non-cash charges, such as depreciation of property and equipment and stock-based compensation expense. While these are non-cash charges, the Company may need to replace the assets being depreciated and amortized in the future and Adjusted EBITDA does not reflect cash requirements for these replacements or new capital expenditure requirements; and ii the exclusion of stock-based compensation expense, which has been a significant recurring expense and the Company expects will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be an important component of the Company’s compensation strategy.
- Non-GAAP cost of revenue, non-GAAP selling, general, and administrative expenses, non-GAAP research and development expenses, non-GAAP net loss, and non-GAAP net loss per share: The exclusion of stock-based compensation expense, which has been a significant recurring expense and the Company expects will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be an important component of the Company’s compensation strategy.
In addition, non-GAAP selling, general, and administrative expenses exclude non-recurring expense related to non-capitalized transaction costs. While the Company expects this non-recurring expense to cease, the Company expects new non-recurring expense will be introduced following the Business Combination such as change in fair value of the Company’s outstanding warrants which the Company expects will constitute to be a significant expense until all warrants are exercised and/or redeemed.
Because of these limitations, you should consider Adjusted EBITDA, non-GAAP cost of revenue, non-GAAP selling, general, and administrative expenses, non-GAAP research and development expenses, non-GAAP net loss, and non-GAAP net loss per share alongside other financial performance measures, including net loss and the Company’s other GAAP results. The information in the tables below sets forth the non-GAAP financial measures along with the most directly comparable GAAP financial measures.
A reconciliation of Adjusted EBITDA to net loss for the three months ended
(Unaudited and in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(57,972 |
) |
|
$ |
(30,557 |
) |
|
$ |
(20,524 |
) |
|
$ |
(153,306 |
) |
|
$ |
(46,953 |
) |
Interest expense, net |
|
1,587 |
|
|
179 |
|
|
(1 |
) |
|
1,913 |
|
|
73 |
|
|||||
Income tax expense |
|
598 |
|
|
110 |
|
|
154 |
|
|
808 |
|
|
374 |
|
|||||
Depreciation and amortization |
|
1,229 |
|
|
1,069 |
|
|
700 |
|
|
3,228 |
|
|
2,095 |
|
|||||
EBITDA |
|
(54,558 |
) |
|
(29,199 |
) |
|
(19,671 |
) |
|
(147,357 |
) |
|
(44,411 |
) |
|||||
Non-capitalized transaction costs* |
|
3,214 |
|
|
79 |
|
|
1,511 |
|
|
4,254 |
|
|
1,541 |
|
|||||
Stock-based compensation |
|
2,155 |
|
|
1,976 |
|
|
1,676 |
|
|
5,856 |
|
|
5,865 |
|
|||||
Equity method investment loss |
|
(145 |
) |
|
604 |
|
|
689 |
|
|
346 |
|
|
941 |
|
|||||
Change in fair value of debt instruments |
|
14,255 |
|
|
6,008 |
|
|
3,325 |
|
|
59,916 |
|
|
5,547 |
|
|||||
Change in fair value of warrants |
|
(515 |
) |
|
— |
|
|
— |
|
|
(515 |
) |
|
— |
|
|||||
Forgiveness of PPP Loan |
|
— |
|
|
(2,860 |
) |
|
— |
|
|
(2,860 |
) |
|
— |
|
|||||
Adjusted EBITDA |
|
$ |
(35,594 |
) |
|
$ |
(23,392 |
) |
|
$ |
(12,470 |
) |
|
$ |
(80,360 |
) |
|
$ |
(30,517 |
) |
A reconciliation of non-GAAP net loss to net loss for the three months ended
(Unaudited and in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Loss |
|
$ |
(57,972 |
) |
|
$ |
(30,557 |
) |
|
$ |
(20,524 |
) |
|
$ |
(153,306 |
) |
|
$ |
(46,953 |
) |
Non-GAAP cost of revenue adjustment |
|
347 |
|
|
363 |
|
|
467 |
|
|
977 |
|
|
1,808 |
|
|||||
Non-GAAP selling, general and administrative expenses adjustment |
|
4,132 |
|
|
945 |
|
|
2,016 |
|
|
6,824 |
|
|
3,196 |
|
|||||
Non-GAAP research and development expenses adjustment |
|
2,119 |
|
|
1,816 |
|
|
1,404 |
|
|
5,537 |
|
|
4,497 |
|
|||||
Non-GAAP Net loss |
|
$ |
(51,374 |
) |
|
$ |
(27,433 |
) |
|
$ |
(16,637 |
) |
|
$ |
(139,968 |
) |
|
$ |
(37,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-GAAP Net loss per share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
$ |
(0.48 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.52 |
) |
|
$ |
(0.45 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
107,633,037 |
|
|
84,247,703 |
|
|
83,509,920 |
|
|
92,008,435 |
|
|
83,392,042 |
|
|||||
A reconciliation of cost of revenue to non-GAAP cost of revenue for the three months ended
(Unaudited and in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue |
|
$ |
3,459 |
|
|
$ |
4,549 |
|
|
$ |
5,015 |
|
|
$ |
11,742 |
|
|
$ |
18,100 |
|
Stock-based compensation |
|
347 |
|
|
363 |
|
|
467 |
|
|
977 |
|
|
1,808 |
|
|||||
Non-GAAP Cost of revenue |
|
$ |
3,112 |
|
|
$ |
4,186 |
|
|
$ |
4,548 |
|
|
$ |
10,765 |
|
|
$ |
16,292 |
|
A reconciliation of selling, general, and administrative expenses to non-GAAP selling, general, and administrative expenses for the three months ended
(Unaudited and in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general, and administrative expenses |
|
$ |
13,568 |
|
|
$ |
6,715 |
|
|
$ |
5,354 |
|
|
$ |
27,588 |
|
|
$ |
12,603 |
|
Depreciation and amortization |
|
449 |
|
|
424 |
|
|
186 |
|
|
1,250 |
|
|
569 |
|
|||||
Stock-based compensation |
|
469 |
|
|
442 |
|
|
319 |
|
|
1,320 |
|
|
1,086 |
|
|||||
Non-capitalized transaction costs* |
|
3,214 |
|
|
79 |
|
|
1,511 |
|
|
4,254 |
|
|
1,541 |
|
|||||
Non-GAAP selling, general and administrative expenses |
|
$ |
9,436 |
|
|
$ |
5,770 |
|
|
$ |
3,338 |
|
|
$ |
20,764 |
|
|
9,407 |
|
|
A reconciliation of research and development expenses to non-GAAP research and development expenses for the three months ended
(Unaudited and in thousands) |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development expenses |
|
$ |
26,418 |
|
|
$ |
17,551 |
|
|
$ |
10,790 |
|
|
$ |
59,949 |
|
|
$ |
27,007 |
|
Depreciation and amortization |
|
780 |
|
|
645 |
|
|
514 |
|
|
1,978 |
|
|
1,526 |
|
|||||
Stock-based compensation |
|
1,339 |
|
|
1,171 |
|
|
890 |
|
|
3,559 |
|
|
2,971 |
|
|||||
Non-GAAP research and development expenses |
|
$ |
24,299 |
|
|
$ |
15,735 |
|
|
$ |
9,386 |
|
|
$ |
54,412 |
|
|
$ |
22,510 |
|
______________________
∗ 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/20211115006189/en/
For
Media
Resonates
Telephone: +44 1635 898 698
Email: rockley@resonates.com
Investors
Telephone: +1 626-995-0001
Email: investors@rockleyphotonics.com
Source:
FAQ
What were Rockley's financial results for Q3 2021?
How does Rockley's revenue for Q3 2021 compare to Q2 2021?
What is the significance of Rockley's backlog of $23.0 million?
What partnerships did Rockley announce in Q3 2021?
What is Rockley's cash position as of September 30, 2021?
