On November 8, 2023, Cue Health Inc (HLTH, Financial), a healthcare technology company, announced its financial results for the third quarter of 2023, revealing a revenue figure that substantially exceeded the company's own expectations. The reported revenue of $17.5 million for the quarter was about 50% above the midpoint of the provided guidance range, showcasing the company's ability to outperform amidst ongoing reviews of its diagnostic tests by the FDA.
Financial Performance Overview
Cue Health Inc (HLTH, Financial) saw a robust increase in private sector revenue, which accounted for 82% of the total revenue, amounting to $14.4 million. Public sector revenue contributed $3.1 million, while disposable test cartridge revenue reached $13.2 million. Despite these gains, the company reported a GAAP product gross loss of $7.4 million for the quarter.
Operating expenses for Q3 2023 were $60.0 million, excluding cost of revenue, reflecting a 37% decrease from the $94.6 million reported in Q4 2022. The company also recognized a $20.9 million employee retention credit as tax credits on the income statement. The GAAP net loss for the quarter was $47.0 million, with a loss per diluted share of $0.31, marking an improvement from the previous quarter. The adjusted net loss stood at $63.6 million, with an adjusted loss per diluted share of $0.42, and an adjusted EBITDA loss of $36.6 million.
Balance Sheet and Cash Flow
As of September 30, 2023, Cue Health Inc (HLTH, Financial) reported cash and cash equivalents of $111.5 million, with the company continuing to operate without any debt obligations. The net change in cash for the quarter was a decrease of $17.1 million.
Strategic Developments and Future Outlook
Chairman and CEO Ayub Khattak commented on the company's performance, stating,
In the third quarter our revenue exceeded our expectations, and we continued to execute on our strategic priorities with strong financial discipline. Our cost lowering program has now achieved $165 million in annualized savings, above our $150 million target."He also highlighted the progress in FDA reviews for the company's diagnostic tests and praised the Cue team for their execution.
Looking ahead, Cue Health Inc (HLTH, Financial) expects fourth quarter 2023 revenues to be in the range of $16 million to $18 million. The company remains focused on its strategic priorities, including the development of its diagnostic test portfolio and maintaining financial discipline.
For more detailed financial information and the full earnings report, please visit Cue Health Inc's website.
Investors and value seekers are encouraged to keep an eye on Cue Health Inc (HLTH, Financial) as it continues to navigate the healthcare technology landscape with its innovative diagnostic solutions and strategic financial management.
Explore the complete 8-K earnings release (here) from Cue Health Inc for further details.
