Akoya Reports Record Revenue in the Fourth Quarter of 2023 and Provides Full Year 2024 Financial Outlook
Q4 2023 revenue $26.5 million and FY 2023 revenue $96.6 million
Guiding FY 2024 revenue range $114.0-118.0 million and operating cash flow breakeven by YE 2024
MARLBOROUGH, Mass., March 04, 2024 (GLOBE NEWSWIRE) -- Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial Biology Company®, today announced its financial results for the fourth quarter and full year ending December 31, 2023.
“Akoya's successful 2023 performance reflects the high demand for our leading spatial biology solutions and effective execution of our financial and strategic plan,” said Brian McKelligon, CEO of Akoya Biosciences. “We expanded our installed base to nearly 1,200 instruments, improved platform speeds, and simplified workflows with new offerings of reagents and analysis tools. We anticipate strong topline growth in 2024 and operating cash flow breakeven by year end.”
Fourth Quarter 2023 Financial Highlights
- Revenue was $26.5 million in the fourth quarter of 2023, compared to $21.2 million in the prior year period; an increase of 25.0%. This increase was primarily due to higher reagents and services revenue.
- Gross margin was 62.7% in the fourth quarter of 2023, compared to 56.8% in the prior year period. The increase in gross margin was primarily driven by product mix and improved margin on the product business.
- Operating expense was $26.1 million for the fourth quarter of 2023, compared to $29.6 million in the prior year period; a decrease of 11.8%. The decrease was primarily driven by further realized operating leverage and efficiencies.
- Operating loss was $9.4 million for the fourth quarter of 2023, compared to an operating loss of $17.6 million in the prior year period; a decrease of 46.6%.
- $83.1 million of cash and cash equivalents as of December 31, 2023.
Fourth Quarter 2023 Business Highlights
- Announced a license and distribution agreement with Thermo Fisher Scientific to deliver spatial multiomic workflow by combining Akoya’s market leading spatial biology solutions with ViewRNA technology to enable rapid, whole-slide imaging of RNA and protein biomarkers.
- Announced the formation of a new Scientific Advisory Board with initial members consisting of global experts in immunobiology: James Allison, Ph.D., former Akoya director Garry Nolan, Ph.D., and Padmanee Sharma, M.D., Ph.D.
- Announced deployment of the MaxFuse algorithm co-developed by Dr. Garry Nolan and his laboratory at Stanford University for multiomic integration of spatial and single-cell data on the Enable Medicine platform.
Full Year 2023 Financial and Business Highlights
- Revenue was $96.6 million for the year ended December 31, 2023, compared to $74.9 million in the prior year; an increase of 29.0%.
- Gross margin was 58.3% for the year ended December 31, 2023, compared to 58.0% in the prior year period.
- Operating expense was $114.0 million for the year ended December 31, 2023, compared to $109.5 million in the prior year period; an increase of 4.1%.
- Operating loss was $57.7 million for the year ended December 31, 2023, compared to an operating loss of $66.1 million in the prior year period; a decrease of 12.7%.
- Instrument installed base of 1,183 as of December 31, 2023 (342 PhenoCyclers, 841 PhenoImagers), compared to an installed base of 934 in the prior year period (254 PhenoCyclers, 680 PhenoImagers); an increase of 26.7%.
- 1,160 total publications citing Akoya’s technology as of December 31, 2023, compared to 772 total publications in the prior year period: an increase of 50.3%.
2024 Financial Outlook
The Company, based on its current plans and initiatives, expects full year 2024 revenue guidance range of $114.0-118.0 million and projects operating cash flow breakeven by year end.
Webcast and Conference Call Details
Akoya will host a conference call today, March 4, 2024, at 5:00 p.m. Eastern Time to discuss its fourth quarter and full year 2023 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.
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 anticipated topline growth in 2024, our ability to achieve operating cash flow breakeven, projected timing for achieving operating cash flow breakeven, our expectations regarding our ability to market and sell our PhenoCycler and PhenoImager platforms and our other products and services, our ability to increase awareness of spatial biology technology, our research and development efforts, our expectations with respect to our current or future RUO or CDx business, and other statements regarding our business strategies, use of capital, results of operations and financial position 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
Sr. Director, Investor Relations
Akoya Biosciences
investors@akoyabio.com
Media Contact:
Christine Quern
617-650-8497
media@akoyabio.com
| AKOYA BIOSCIENCES, INC. AND SUBSIDIARY Condensed Consolidated Balance Sheets (unaudited) (in thousands) | ||||||
| December 31, 2023 | December 31, 2022 | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 83,125 | $ | 74,229 | ||
| Marketable securities | — | 6,989 | ||||
| Accounts receivable, net | 16,994 | 9,729 | ||||
| Inventories, net | 17,877 | 14,486 | ||||
| Prepaid expenses and other current assets | 3,794 | 6,764 | ||||
| Total current assets | 121,790 | 112,197 | ||||
| Property and equipment, net | 10,729 | 10,174 | ||||
| Demo inventory, net | 893 | 2,084 | ||||
| Intangible assets, net | 17,412 | 20,048 | ||||
| Goodwill | 18,262 | 18,262 | ||||
| Operating lease right of use assets, net | 8,365 | 10,785 | ||||
| Financing lease right of use assets, net | 1,562 | 1,490 | ||||
| Other non-current assets | 1,356 | 991 | ||||
| Total assets | $ | 180,369 | $ | 176,031 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current liabilities | ||||||
| Accounts payable, accrued expenses and other current liabilities | $ | 25,209 | $ | 27,147 | ||
| Current portion of operating lease liabilities | 2,681 | 3,009 | ||||
| Current portion of financing lease liabilities | 767 | 620 | ||||
| Deferred revenue | 6,688 | 6,279 | ||||
| Total current liabilities | 35,345 | 37,055 | ||||
| Deferred revenue, net of current portion | 3,193 | 2,114 | ||||
| Long-term debt, net | 75,254 | 63,277 | ||||
| Contingent consideration liability, net of current portion | 5,765 | 6,039 | ||||
| Operating lease liabilities, net of current portion | 6,238 | 8,203 | ||||
| Financing lease liabilities, net of current portion | 766 | 675 | ||||
| Other long-term liabilities | 38 | 87 | ||||
| Total liabilities | 126,599 | 117,450 | ||||
| Total stockholders' equity | 53,770 | 58,581 | ||||
| Total liabilities and stockholders' equity | $ | 180,369 | $ | 176,031 | ||
| AKOYA BIOSCIENCES, INC. AND SUBSIDIARY Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product revenue | $ | 16,691 | $ | 15,708 | $ | 67,410 | $ | 57,650 | ||||||||
| Service and other revenue | 9,796 | 5,511 | 29,223 | 17,209 | ||||||||||||
| Total revenue | 26,487 | 21,219 | 96,633 | 74,859 | ||||||||||||
| Cost of goods sold: | ||||||||||||||||
| Cost of product revenue | 6,031 | 6,214 | 25,778 | 20,947 | ||||||||||||
| Cost of service and other revenue | 3,836 | 2,959 | 14,550 | 10,522 | ||||||||||||
| Total cost of goods sold | 9,867 | 9,173 | 40,328 | 31,469 | ||||||||||||
| Gross profit | 16,620 | 12,046 | 56,305 | 43,390 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 18,898 | 20,948 | 82,381 | 79,653 | ||||||||||||
| Research and development | 4,670 | 6,433 | 21,889 | 23,211 | ||||||||||||
| Change in fair value of contingent consideration | 617 | 497 | 1,636 | (102 | ) | |||||||||||
| Depreciation and amortization | 1,874 | 1,759 | 8,067 | 6,734 | ||||||||||||
| Total operating expenses | 26,059 | 29,637 | 113,973 | 109,496 | ||||||||||||
| Loss from operations | (9,439 | ) | (17,591 | ) | (57,668 | ) | (66,106 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (2,293 | ) | (1,847 | ) | (8,761 | ) | (4,554 | ) | ||||||||
| Interest income | 913 | 564 | 3,489 | 777 | ||||||||||||
| Other expense, net | (5 | ) | (27 | ) | (343 | ) | (635 | ) | ||||||||
| Loss before (provision) benefit for income taxes | (10,824 | ) | (18,901 | ) | (63,283 | ) | (70,518 | ) | ||||||||
| (Provision) benefit for income taxes | 22 | 26 | (40 | ) | (123 | ) | ||||||||||
| Net loss | $ | (10,802 | ) | $ | (18,875 | ) | $ | (63,323 | ) | $ | (70,641 | ) | ||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.22 | ) | $ | (0.50 | ) | $ | (1.43 | ) | $ | (1.87 | ) | ||||
| Weighted-average shares outstanding, basic and diluted | 49,089,712 | 38,002,409 | 44,434,570 | 37,746,915 | ||||||||||||
