On November 8, 2023, Acutus Medical Inc (AFIB, Financial) released its financial results for the third quarter of 2023, showcasing a notable year-over-year revenue increase and improved operational efficiency. The company, which specializes in left-heart access products, reported a revenue of $5.2 million, marking a 44% increase compared to the $3.6 million in the third quarter of 2022. This growth is largely attributed to the company's distribution agreement with Medtronic, higher capital sales, and increases in service, rent, and other revenue.
Financial Performance Overview
The gross margin on a GAAP basis was negative 64% for the third quarter of 2023, which is an improvement from the negative 91% reported for the same period last year. The non-GAAP gross margin also saw an enhancement, moving from negative 109% to negative 60%. These improvements were driven by higher production volumes related to left-heart access manufacturing, lower manufacturing variances, and reduced manufacturing overhead expenses.
Operating expenses on a GAAP basis were $12.2 million for the third quarter of 2023, a decrease from $15.6 million for the same quarter last year. The non-GAAP operating expenses also decreased to $11.1 million from $15.2 million. This reduction in operating expenses was a result of reduced discretionary spending and the reprioritization of certain research and development programs.
The net loss on a GAAP basis for the third quarter of 2023 was $13.2 million, or $0.45 per share, compared to a net loss of $20.4 million, or $0.72 per share, for the same quarter last year. The non-GAAP net loss for the third quarter of 2023 was $15.2 million, or $0.52 per share, compared to a non-GAAP net loss of $20.0 million, or $0.70 per share, for the third quarter of 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Acutus Medical Inc (AFIB, Financial) had cash, cash equivalents, marketable securities, and restricted cash totaling $45.5 million. The balance sheet reflects a disciplined approach to cash management and a focus on operational efficiency.
Due to a strategic decision to realign resources to support the left-heart access distribution business and exit from the electrophysiology mapping and ablation businesses, Acutus Medical Inc (AFIB, Financial) will no longer provide financial guidance.
Non-GAAP Financial Measures
The company provided non-GAAP financial measures to offer additional insight into its performance. These measures exclude certain items that may not be indicative of the company's core operating results, such as stock-based compensation, amortization of acquisition-related intangibles, and restructuring charges. Acutus Medical Inc (AFIB, Financial) believes these non-GAAP measures are important indicators of operating performance.
In summary, Acutus Medical Inc (AFIB, Financial) has demonstrated significant revenue growth and improved operational efficiency in the third quarter of 2023. The company's strategic partnership with Medtronic and its focus on left-heart access products have contributed to this performance. While the negative gross margin remains a challenge, the substantial reduction in operating expenses and net loss indicates progress towards financial stability.
For a detailed understanding of Acutus Medical Inc (AFIB, Financial)'s financial performance, investors and potential GuruFocus.com members are encouraged to review the full earnings report and financial statements.
Explore the complete 8-K earnings release (here) from Acutus Medical Inc for further details.
