Cue Health Reports First Quarter 2023 Financial Results

Original from: businesswire

Cue Health Inc., a healthcare technology company, today reported financial results for the first quarter 2023.​

Recent Highlights

- Reported first quarter revenue of $24.8 million

- Granted U.S. Food and Drug Administration (FDA) Emergency Use Authorization (EUA) for Cue Mpox (Monkeypox) Molecular Test for point-of-care use

- Submitted the Cue RSV Molecular Test as a De Novo submission to the FDA for home and point-of-care use during the second quarter, as planned

- Launched Cue Pharmacy, a new Cue Integrated Care Platform expansion to enable individuals to connect with a healthcare provider and be prescribed common medications as a subscription

- Launched Cue Lab, a collection of at-home test kits for a wide variety of diagnostic panels and standalone tests providing personalized care from the convenience and privacy of home

- Cue Strep Molecular Test is on track with clinical studies ongoing and a submission to the FDA expected in the second half of 2023

- Cue Chlamydia + Gonorrhea Molecular Test is on track with clinical studies ongoing and a submission to the FDA expected in the second half of 2023

- Achieved our previously announced cost reduction goal of $100 million of annualized run rate cost savings in the first quarter, earlier than anticipated

- Initiated additional cost reduction efforts expected to contribute an additional $50 million of annualized savings, bringing the total goal to $150 million of annualized cost savings

- Ended the first quarter with cash and cash equivalents of $178.2 million and no debt obligations

“We reached several significant milestones including launching Cue Pharmacy, Cue Lab, and receiving authorization for the Cue Mpox test, our second FDA authorization,” said Ayub Khattak, Chairman and CEO of Cue Health. “We have four Cue tests submitted to the FDA, including for RSV and a Flu + COVID combo test. We are executing our strategic plan including expanding the menu on the Cue Health Monitoring System as well as expanding the offering for the Cue Integrated Care Platform. We have cut our annualized costs by an expected $150 million to weather the macroeconomic climate as we make significant progress on our plan.”

First Quarter 2023 Financial Results

Revenue was $24.8 million for the first quarter of 2023. Private sector revenue was $24.2 million or 98% of total revenue with strong ordering from existing customers. Public sector revenue was $0.6 million and disposable test cartridge revenue was $22.4 million.

GAAP product gross profit margin was a loss of 63% in the first quarter of 2023. Adjusted product gross profit margin was a loss of 14% excluding a disputed payment charge impacting cost of product revenue.

GAAP operating expenses in the first quarter of 2023 were $80.8 million, excluding cost of revenue, including $7.9 million of restructuring expense related to the implementation of the cost reduction plan. On an adjusted basis, excluding the impact of the restructuring expense, operating expenses were $72.9 million or a 23% decrease compared to $94.6 million in the fourth quarter of 2022.

GAAP net loss in the first quarter of 2023 was $94.2 million and earnings per diluted share was a loss of $0.62. Cue's adjusted net loss was $74.3 million and adjusted earnings per diluted share was a loss of $0.48. Adjusted EBITDA was a loss of $47.6 million.

Cash and cash equivalents were $178.2 million as of March 31, 2023 and the company continues to operate with no debt obligations.

Guidance

Cue Health expects second quarter 2023 revenues in the range of $8 million to $10 million reflecting an expected shift to a seasonal respiratory pattern for COVID testing volumes.

​

Source: Cue Health Reports First Quarter 2023 Financial Results