DermTech Reports Fourth-Quarter 2023 Financial Results
- Average selling price (ASP) for the DermTech Melanoma Test (DMT) increased 55 percent year-over-year
- Test revenue increased 38 percent versus the fourth quarter of 2022
- Estimated cash runway into the first quarter of 2025
“We reported sustained improvement in many of our key performance indicators during the second half of last year and will continue emphasizing average selling price (ASP) and revenue growth in 2024,” said
Christensen continued, “We’ve also delivered on our commitment to find additional operating efficiencies and being diligent with the allocation of our resources. We now plan to achieve approximately
Christensen concluded, “We have a great technology that can significantly enhance the standard of care for evaluating melanoma, while also lowering healthcare costs and providing a better patient experience. We continue to be inspired by the patient stories we often hear where we’ve made a significant difference in their lives.”
Fourth-Quarter 2023 Financial Results
- Billable sample volume declined 11 percent from the fourth quarter of 2022 to approximately 15,580.
-
Test revenue was
$3.7 million , up 38 percent from the fourth quarter of 2022, primarily due to a higher ASP for the DMT. -
Total revenue was
$3.9 million , a 31 percent increase from the fourth quarter of 2022, driven by higher test revenue. -
Cost of test revenue was
$3.4 million , a 4 percent increase from the fourth quarter of 2022, yielding a test gross margin of 7 percent, compared to negative 22 percent for the fourth quarter of 2022. Cost of test revenue increased primarily because of higher infrastructure costs related to the Company’s new facility. -
Sales and marketing expenses were
$8.4 million , a 38 percent decrease from the fourth quarter of 2022. The decrease was primarily attributable to lower employee-related and marketing expenditures. -
Research and development expenses were
$3.3 million , a 34 percent decrease from the fourth quarter of 2022, largely due to lower employee-related and lab supplies costs. -
General and administrative expenses were
$8.4 million , a 14 percent decrease from the fourth quarter of 2022. The decrease was driven primarily by lower employee-related costs, offset by higher infrastructure costs related to the Company’s new facility. -
Net loss was
$19.1 million , or ($0.56 ) per share, which included$3.2 million of non-cash stock-based compensation expense, as compared to$28.2 million , or ($0.93 ) per share, for the fourth quarter of 2022, which included$5.3 million of non-cash stock-based compensation expense. -
Cash, cash equivalents, restricted cash and short-term marketable securities were
$59.3 million as ofDecember 31, 2023 .DermTech believes it should have sufficient cash resources to fund its planned operations into the first quarter of 2025, not to exceed 12 months from theFebruary 29, 2024 filing date of the Company’s Form 10-K.
Conference Call Information
As previously announced, the Company will host a conference call to discuss its results at
About
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of
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Consolidated Statements of Operations (in thousands, except share and per share data) |
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Three Months Ended |
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Twelve Months Ended |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenues: |
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Test revenue |
$ |
3,702 |
|
|
$ |
2,692 |
|
|
$ |
14,384 |
|
|
$ |
13,790 |
|
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Contract revenue |
|
222 |
|
|
|
302 |
|
|
|
912 |
|
|
|
728 |
|
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Total revenues |
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3,924 |
|
|
|
2,994 |
|
|
|
15,296 |
|
|
|
14,518 |
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Cost of revenues: |
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|
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Cost of test revenue |
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3,431 |
|
|
|
3,292 |
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|
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14,792 |
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|
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13,702 |
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Cost of contract revenue |
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53 |
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|
|
58 |
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|
|
228 |
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|
|
169 |
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Total cost of revenues |
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3,484 |
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|
3,350 |
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15,020 |
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|
13,871 |
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Gross (loss) profit |
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440 |
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(356 |
) |
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|
276 |
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|
647 |
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Operating expenses: |
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Sales and marketing |
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8,422 |
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13,598 |
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44,995 |
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58,674 |
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Research and development |
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3,348 |
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|
|
5,097 |
|
|
|
15,239 |
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|
|
24,052 |
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General and administrative |
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8,422 |
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|
|
9,828 |
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|
43,781 |
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36,086 |
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Total operating expenses |
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20,192 |
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28,523 |
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|
104,015 |
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|
118,812 |
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Loss from operations |
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(19,752 |
) |
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(28,879 |
) |
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(103,739 |
) |
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(118,165 |
) |
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Other income: |
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Interest income, net |
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660 |
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|
641 |
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2,846 |
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|
|
1,341 |
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Change in fair value of warrant liability |
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1 |
|
|
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15 |
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|
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5 |
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|
|
141 |
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Total other income |
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661 |
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656 |
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2,851 |
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|
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1,482 |
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Net loss |
$ |
(19,091 |
) |
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$ |
(28,223 |
) |
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$ |
(100,888 |
) |
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$ |
(116,683 |
) |
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Weighted average shares outstanding used in computing net loss per share, basic and diluted |
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34,326,638 |
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30,245,264 |
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32,641,376 |
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30,038,959 |
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Net loss per share of common stock outstanding, basic and diluted |
$ |
(0.56 |
) |
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$ |
(0.93 |
) |
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$ |
(3.09 |
) |
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$ |
(3.88 |
) |
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Consolidated Balance Sheets (in thousands, except share and per share data) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ |
36,741 |
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$ |
77,757 |
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Short-term marketable securities |
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19,123 |
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48,411 |
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Accounts receivable |
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2,584 |
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4,172 |
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Inventory |
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1,004 |
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1,757 |
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Prepaid expenses and other current assets |
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2,300 |
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3,940 |
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Total current assets |
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61,752 |
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136,037 |
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Property and equipment, net |
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4,988 |
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6,375 |
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Operating lease right-of-use assets |
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51,722 |
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56,007 |
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Restricted cash |
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3,468 |
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|
3,488 |
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Other assets |
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— |
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|
|
168 |
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Total assets |
$ |
121,930 |
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$ |
202,075 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ |
1,484 |
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$ |
2,419 |
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Accrued compensation |
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6,664 |
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|
7,894 |
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Accrued liabilities |
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2,017 |
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|
3,464 |
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Short-term deferred revenue |
|
196 |
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|
109 |
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Current portion of operating lease liabilities |
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3,069 |
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|
1,634 |
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Current portion of finance lease obligations |
|
17 |
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|
|
116 |
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Total current liabilities |
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13,447 |
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|
|
15,636 |
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Warrant liability |
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— |
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5 |
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Long-term finance lease obligations, less current portion |
|
38 |
|
|
|
53 |
|
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Operating lease liabilities, long-term |
|
51,270 |
|
|
|
54,028 |
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Total liabilities |
|
64,755 |
|
|
|
69,722 |
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Stockholders’ equity: |
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Common stock, |
|
3 |
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|
3 |
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Additional paid-in capital |
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480,929 |
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|
456,171 |
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Accumulated other comprehensive income/(loss) |
|
178 |
|
|
|
(774 |
) |
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Accumulated deficit |
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(423,935 |
) |
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|
(323,047 |
) |
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Total stockholders’ equity |
|
57,175 |
|
|
|
132,353 |
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Total liabilities and stockholders’ equity |
$ |
121,930 |
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$ |
202,075 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240229006238/en/
(858) 291-1647
steve.kunszabo@dermtech.com
Source: