On November 12, 2024, Exagen Inc (XGN, Financial) released its 8-K filing, detailing its financial results for the third quarter ended September 30, 2024. Exagen Inc, a commercial-stage diagnostics company, focuses on providing accurate diagnosis and monitoring solutions for autoimmune rheumatic diseases through its Avise brand.
Performance Overview and Challenges
Exagen Inc reported a total revenue of $12.5 million for Q3 2024, which fell short of the analyst estimate of $13.57 million. This shortfall was primarily due to a net negative impact of $1.2 million from one-time adjustments. Despite these challenges, the company maintained a gross margin of 55.8%, slightly down from 57.4% in the same quarter last year.
The company's net loss for the quarter was $5.0 million, an improvement from the $5.4 million loss in Q3 2023. However, the adjusted EBITDA loss increased to $4.0 million from $3.6 million in the previous year, indicating ongoing operational challenges.
Financial Achievements and Industry Context
Exagen Inc's financial achievements include a 26% increase in the trailing twelve-month average selling price (ASP) of its AVISEĀ® CTD product, reaching $404. This increase is significant in the medical diagnostics and research industry, as it reflects the company's ability to enhance its product value and market positioning.
Moreover, the company reduced its adjusted EBITDA loss by 42% for the first three quarters of 2024 compared to the same period in 2023, demonstrating improved operational efficiency and cost management.
Key Financial Metrics
Exagen Inc's balance sheet showed cash and cash equivalents of $22.0 million as of September 30, 2024, with a net cash burn of $2.5 million for the quarter. The company's accounts receivable balance increased to $9.4 million, reflecting its ongoing business activities.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $12.5 million | $13.4 million |
| Gross Margin | 55.8% | 57.4% |
| Net Loss | $(5.0) million | $(5.4) million |
| Adjusted EBITDA Loss | $(4.0) million | $(3.6) million |
Strategic Developments and Future Outlook
Exagen Inc completed analytical validation for novel biomarkers to enhance its AVISEĀ® CTD product, which has been submitted for approval to the NY State Department of Health. This strategic move is expected to strengthen the company's product offerings and market competitiveness.
We've positioned ourselves for a strong finish to 2024 and laid the groundwork for an exciting 2025, as we look to add new proprietary biomarkers to enhance our flagship product, AVISEĀ® CTD," said John Aballi, President and Chief Executive Officer.
The company anticipates full-year 2024 revenue to be between $55 million and $56 million, reflecting the impact of the one-time adjustments in Q3. Exagen Inc remains focused on driving towards profitable growth and maintaining its leadership in the autoimmune testing industry.
Explore the complete 8-K earnings release (here) from Exagen Inc for further details.
