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Akoya Biosciences Reports Second Quarter 2024 Financial Results
Source: Nasdaq GlobeNewswire / 05 Aug 2024 16:00:00 America/New_York
MARLBOROUGH, Mass., Aug. 05, 2024 (GLOBE NEWSWIRE) -- Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial Biology Company®, today announced its financial results for the second quarter ending June 30, 2024.
“Our second-quarter revenue showed a strong rebound with 26% sequential top-line growth and a stable year-over-year performance,” said Brian McKelligon, CEO of Akoya Biosciences. “We believe that Akoya’s platforms are poised to lead the spatial biology market from discovery to diagnostics, while we also position the company to achieve near-term operating cash flow breakeven as we align our cost structure with our strategic objectives.”
Second Quarter 2024 Financial and Business Results
- For the second quarter of 2024, revenue was $23.2 million, a 26.2% quarter-over-quarter increase from $18.4 million in the first quarter and 1.5% year-over-year decrease from $23.5 million in the second quarter of 2023.
- Instruments, consumables and services all contributed to sequential growth. Instrument revenue was $8.3 million, a 70.4% quarter-over-quarter increase. Reagent revenue was $7.4 million, a 5.6% quarter-over-quarter increase. Service and other revenue was $7.2 million, a 16.6% quarter-over-quarter increase.
- For the second quarter of 2024, gross margin was 57.8%, compared to gross margin of 45.7% in the first quarter of 2024 and 51.5% in the second quarter of 2023.
- For the second quarter of 2024, operating expenses were $24.5 million, compared to operating expenses of $30.0 million in the first quarter of 2024, a 18.3% quarter-over-quarter decrease, and $31.4 million in the second quarter of 2023, a 22.0% year-over-year decrease.
- For the second quarter of 2024, loss from operations was $11.1 million, compared to loss from operations of $21.6 million in the first quarter of 2024, a 48.6% quarter-over-quarter decrease, and $19.2 million in the second quarter of 2023, a 42.4% year-over-year decrease.
- Ended the second quarter of 2024 with an instrument installed base of 1,264 (374 PhenoCyclers, 890 PhenoImagers), a year-over-year increase of 18.8%, compared to an installed base of 1,064 in the prior year period (300 PhenoCyclers, 764 PhenoImagers).
- As of June 30, 2024, there were 1,450 total publications citing Akoya’s technology, compared to 988 total publications in the prior year period, a 46.8% increase.
- $48.7 million of cash, cash equivalents and marketable securities as of June 30, 2024.
YTD 2024 Financial Results
- YTD 2024 revenue was $41.5 million, compared to $44.9 million in the prior year period: a 7.6% decrease.
- YTD 2024 reported gross margin was 52.4% while non-GAAP adjusted gross margin was 57.4% when excluding the write-off from discontinued legacy products in the first quarter of 2024. Both GAAP and non-GAAP gross margin were 54.3% in the prior year period of 2023.
- YTD 2024 operating expenses were $54.4 million while non-GAAP operating expenses were $50.1 million when excluding the impairment charge for facility consolidation and restructuring associated with a reduction in force in the first quarter of 2024. Both GAAP and non-GAAP operating expenses were $61.1 million in the prior year period of 2023.
- YTD 2024 loss from operations was $32.7 million while non-GAAP loss from operations was $26.3 million excluding the items noted above. Both GAAP and non-GAAP loss from operations were $36.7 million in the prior year period of 2023.
2024 Financial Outlook
Akoya is updating its revenue outlook for the full year 2024 while maintaining its commitment to achieving operating cash flow breakeven by year end. The Company now expects the full year 2024 revenue to be in the range of $96-104 million.
Webcast and Conference Call Details
Akoya will host a conference call today, August 5, 2024, at 5:00 p.m. Eastern Time to discuss its second quarter 2024 financial results. Investors interested in listening to the conference call are required to register online. A live webcast of the conference call will be available on the “Investors” section of the Company's website at https://investors.akoyabio.com/. The webcast will be archived on the website following the completion of the call for three months.
Non-GAAP Financial Measures
In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”), Akoya is including in this press release “non-GAAP adjusted gross profit,” “non-GAAP adjusted gross margin,” “non-GAAP operating expense,” and “non-GAAP loss from operations,” all of which are non-GAAP financial measures. Akoya defines non-GAAP adjusted gross profit as gross profit margin adjusted for certain excess and obsolete inventory charges. Non-GAAP adjusted gross margin is defined as non-GAAP adjusted gross profit divided by total revenue. Akoya defines non-GAAP operating expense as operating expense adjusted for impairment and restructuring charges. Akoya defines non-GAAP loss from operations as loss from operations adjusted for certain excess and obsolete inventory charges, impairment, and restructuring charges.
Akoya includes these non-GAAP financial measures because it believes they allow investors to understand and evaluate the Company’s core operating performance and trends. In particular, the exclusion of certain items in calculating non-GAAP adjusted gross profit, non-GAAP adjusted gross margin, non-GAAP operating expense, and non-GAAP loss from operations can provide useful measures for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate non-GAAP adjusted gross profit, non-GAAP adjusted gross margin, non-GAAP operating expense, and non-GAAP loss from operations differently than Akoya does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.
Forward-Looking Statements
This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our expectations for full year 2024 revenue, our growth prospects, our ability to lead the spatial biology market from discovery to diagnostics, our ability to achieve operating cash flow breakeven by year end or at all, and other statements regarding our business strategies, use of capital, results of operations, financial performance and plans and objectives for future operations.
In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.
About Akoya Biosciences
As The Spatial Biology Company®, Akoya Biosciences’ mission is to bring context to the world of biology and human health through the power of spatial phenotyping. The Company offers comprehensive single-cell imaging solutions that allow researchers to phenotype cells with spatial context and visualize how they organize and interact to influence disease progression and response to therapy. Akoya offers a full continuum of spatial phenotyping solutions to serve the diverse needs of researchers across discovery, translational and clinical research: PhenoCode™ Panels and PhenoCycler®, PhenoImager® Fusion and PhenoImager HT Instruments. To learn more about Akoya, visit www.akoyabio.com.
Investor Contact:
Priyam Shah
investors@akoyabio.comMedia Contact:
Christine Quern
media@akoyabio.comAKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)June 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 8,923 $ 83,125 Marketable securities 36,301 — Accounts receivable, net 16,554 16,994 Inventories, net 24,796 17,877 Prepaid expenses and other current assets 2,938 3,794 Total current assets 89,512 121,790 Property and equipment, net 8,164 10,729 Marketable securities, net of current portion 3,496 — Demo inventory, net 666 893 Intangible assets, net 15,986 17,412 Goodwill 18,262 18,262 Operating lease right of use assets, net 5,154 8,365 Financing lease right of use assets, net 1,154 1,562 Other non-current assets 1,351 1,356 Total assets $ 143,745 $ 180,369 Liabilities and Stockholders’ Equity Current liabilities Accounts payable, accrued expenses and other current liabilities $ 22,955 $ 25,209 Current portion of operating lease liabilities 2,680 2,681 Current portion of financing lease liabilities 642 767 Deferred revenue 6,461 6,688 Total current liabilities 32,738 35,345 Deferred revenue, net of current portion 3,170 3,193 Long-term debt, net 75,684 75,254 Contingent consideration liability, net of current portion 4,097 5,765 Operating lease liabilities, net of current portion 5,155 6,238 Financing lease liabilities, net of current portion 537 766 Other long-term liabilities 115 38 Total liabilities 121,496 126,599 Total stockholders' equity 22,249 53,770 Total liabilities and stockholders' equity $ 143,745 $ 180,369 AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Revenue: Product revenue $ 15,926 $ 17,147 $ 28,066 $ 32,671 Service and other revenue 7,238 6,374 13,448 12,260 Total revenue 23,164 23,521 41,514 44,931 Cost of goods sold: Cost of product revenue 6,467 7,788 13,190 13,539 Cost of service and other revenue 3,311 3,617 6,559 6,983 Total cost of goods sold 9,778 11,405 19,749 20,522 Gross profit 13,386 12,116 21,765 24,409 Operating expenses: Selling, general and administrative 19,094 23,905 38,957 47,030 Research and development 5,288 6,923 10,842 13,300 Change in fair value of contingent consideration 88 530 267 757 Impairment — — 2,971 — Restructuring — — 1,397 — Total operating expenses 24,470 31,358 54,434 61,087 Loss from operations (11,084 ) (19,242 ) (32,669 ) (36,678 ) Other income (expense): Interest expense (2,606 ) (2,175 ) (5,218 ) (4,229 ) Interest income 668 737 1,605 1,502 Other expense, net (80 ) (105 ) (241 ) (153 ) Loss before provision for income taxes (13,102 ) (20,785 ) (36,523 ) (39,558 ) Provision for income taxes (47 ) (18 ) (110 ) (47 ) Net loss $ (13,149 ) $ (20,803 ) $ (36,633 ) $ (39,605 ) Net loss per share attributable to common stockholders, basic and diluted $ (0.27 ) $ (0.51 ) $ (0.74 ) $ (1.00 ) Weighted-average shares outstanding, basic and diluted 49,419,982 40,639,714 49,304,076 39,489,261 AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Gross Profit to Non-GAAP Adjusted Gross Profit Reconciliation and Calculation of Gross Margin and Non-GAAP Adjusted Gross Margin (unaudited)
(in thousands)Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Total revenue $ 23,164 $ 23,521 $ 41,514 $ 44,931 Gross profit 13,386 12,116 21,765 24,409 Provision for excess and obsolete inventories - product discontinuation and lease exit inventory charges — — 2,045 — Non-GAAP adjusted gross profit $ 13,386 $ 12,116 $ 23,810 $ 24,409 Gross margin 58 % 52 % 52 % 54 % Non-GAAP adjusted gross margin 58 % 52 % 57 % 54 % AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Operating Expense to Non-GAAP Operating Expense Reconciliation (unaudited)
(in thousands)Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Operating expenses $ 24,470 $ 31,358 $ 54,434 $ 61,087 Impairment — — (2,971 ) — Restructuring — — (1,397 ) — Non-GAAP operating expenses $ 24,470 $ 31,358 $ 50,066 $ 61,087 AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Loss From Operations to Non-GAAP Loss From Operations Reconciliation (unaudited)
(in thousands)Three months ended Six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Loss from operations $ (11,084 ) $ (19,242 ) $ (32,669 ) $ (36,678 ) Provision for excess and obsolete inventories - product discontinuation and lease exit inventory charges — — 2,045 — Impairment — — 2,971 — Restructuring — — 1,397 — Non-GAAP loss from operations $ (11,084 ) $ (19,242 ) $ (26,256 ) $ (36,678 ) 
- For the second quarter of 2024, revenue was $23.2 million, a 26.2% quarter-over-quarter increase from $18.4 million in the first quarter and 1.5% year-over-year decrease from $23.5 million in the second quarter of 2023.