In a report released yesterday, Acutus Medical, a prominent player in the field of arrhythmia management, disclosed its financial results for the third quarter (Q3) of 2023. Following this announcement, Acutus Medical’s stock is experiencing a decline in trading today.
At the time of this publication, Acutus Medical Inc stock (AFIB) has witnessed a decline.
Acutus Medical Inc
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Acutus Medical Q3 2023 Financial Results:
During the third quarter of 2023, Acutus Medical generated a total revenue of $5.2 million, marking a substantial 44% surge from the $3.6 million reported for the same period in 2022. This notable improvement can be attributed to robust sales facilitated by the Company’s distribution partnership with Medtronic, augmented capital sales, as well as increased revenue from services, rent, and other avenues.
On a GAAP basis, the gross margin for the third quarter of 2023 registered at negative 64%, a noteworthy enhancement from the negative 91% recorded in the corresponding quarter of the previous year. Non-GAAP gross margin also saw significant improvement, measuring negative 60% for Q3 2023, compared to a staggering negative 109% in Q3 2022. These advancements were primarily fueled by escalated production volumes, particularly in left-heart access manufacturing, diminished manufacturing variances, and reduced overhead expenses.
With regard to operating expenses, encompassing both research and development, as well as selling, general, and administrative expenses, the third quarter of 2023 witnessed a GAAP total of $12.2 million. This stands in contrast to the $15.6 million reported for the same period in 2022. Similarly, on a non-GAAP basis, operating expenses for Q3 2023 were $11.1 million, down from the $15.2 million reported in Q3 2022. These reductions in expenses on both GAAP and non-GAAP fronts stemmed from a strategic curbing of discretionary spending and a refocusing of specific research and development initiatives.
On a GAAP basis, the net loss for Acutus Medical in the third quarter of 2023 amounted to $13.2 million. This translated to a net loss per share of $0.45, based on a weighted average basic and diluted outstanding share count of 29.3 million. This represents an improvement from the third quarter of the previous year, which reported a net loss of $20.4 million and a net loss per share of $0.72, with a weighted average basic and diluted outstanding share count of 28.4 million. On a non-GAAP basis, the net loss for the third quarter of 2023 was $15.2 million, equating to a per-share loss of $0.52, compared to a non-GAAP net loss of $20.0 million, or $0.70 per share, in the third quarter of 2022.
As of September 30, 2023, Acutus Medical reported a combined total of $45.5 million in cash, cash equivalents, marketable securities, and restricted cash.
In light of the announced strategic shift towards bolstering the left-heart access distribution business and discontinuing involvement in the electrophysiology mapping and ablation sectors, Acutus Medical has opted to discontinue the provision of future financial guidance.
