Workflow
Augmedix(AUGX) - 2024 Q2 - Quarterly Report
AUGXAugmedix(AUGX)2024-08-12 20:12

Clinician and Revenue Growth - Average number of clinicians in service increased 23% to 1,887 in Q2 2024 from 1,534 in Q2 2023[134] - Average annual revenue per clinician increased 3% to 28,700inQ22024from28,700 in Q2 2024 from 27,900 in Q2 2023[135] - Revenue increased by 2.9million(272.9 million (27%) to 13.7 million in Q2 2024 compared to 10.8millioninQ22023,drivenbya2210.8 million in Q2 2023, driven by a 22% increase in clinicians in service and a 3% increase in Average Annual Revenue Per Clinician[150] - Revenue for the six months ended June 30, 2024, increased by 6.7 million (33%) to 27.1millioncomparedto27.1 million compared to 20.4 million in the same period in 2023[159] - Revenues increased by 6.7millionto6.7 million to 27.1 million in the six months ended June 30, 2024, compared to 20.4millioninthesameperiodin2023,drivenbya2920.4 million in the same period in 2023, driven by a 29% increase in the average number of clinicians in service and a 3% increase in Average Annual Revenue Per Clinician[160] Revenue Retention and Customer Base - Dollar-based net revenue retention decreased to 129% in Q2 2024 from 148% in Q2 2023[136] - Dollar-based net revenue retention was 135% in the six months ended June 30, 2024, with approximately 15% revenue exposure to group practices and independent doctors growing slower than Enterprise revenue[160] - Roughly 85% of physicians using the service are employed by or affiliated with healthcare enterprises[123] Operational Efficiency and Cost Management - Gross margin improved to 47.2% in Q2 2024 from 45.6% in Q2 2023, due to operational efficiencies in MDS operations and customer support[151] - Gross margin improved to 47.2% in the six months ended June 30, 2024, compared to 46.3% in the same period in 2023, driven by operational efficiencies in MDS operations and customer support[162] - Cost of revenues increased by 3.4 million to 14.3millioninthesixmonthsendedJune30,2024,primarilyduetoa14.3 million in the six months ended June 30, 2024, primarily due to a 3.0 million increase in MDS costs and 0.4millionincloudhostinganddepreciationcosts[162]ProductDevelopmentandInnovation−Company′stechnologyvisionfocusesonautomatingmedicalnotecreationusingAItechnologieslikeSTT,NLP,andLLMs[125]−AugmedixGoandAugmedixGoAssistintroducedinlate2023andApril2024respectively,offeringlowerfixedsubscriptionfeesandreducedhumanintervention,leadingtolowercostofrevenuecomparedtoAugmedixLive[139]−Researchanddevelopmentexpensesincreasedby0.4 million in cloud hosting and depreciation costs[162] Product Development and Innovation - Company's technology vision focuses on automating medical note creation using AI technologies like STT, NLP, and LLMs[125] - Augmedix Go and Augmedix Go Assist introduced in late 2023 and April 2024 respectively, offering lower fixed subscription fees and reduced human intervention, leading to lower cost of revenue compared to Augmedix Live[139] - Research and development expenses increased by 1.8 million (71%) to 4.4millioninQ22024,mainlyduetoadditionalinvestmentinengineeringandproductheadcount[154]−Researchanddevelopmentexpensesincreasedby4.4 million in Q2 2024, mainly due to additional investment in engineering and product headcount[154] - Research and development expenses increased by 3.0 million to 8.3millioninthesixmonthsendedJune30,2024,mainlyduetoadditionalinvestmentinengineeringandproductheadcount[165]FinancialPerformanceandExpenses−Netlossincreasedby8.3 million in the six months ended June 30, 2024, mainly due to additional investment in engineering and product headcount[165] Financial Performance and Expenses - Net loss increased by 3.4 million (68%) to 8.5millioninQ22024comparedto8.5 million in Q2 2024 compared to 5.0 million in Q2 2023, driven by higher operating expenses and increased interest expense[148] - Net loss for the six months ended June 30, 2024, increased by 4.7million(464.7 million (46%) to 14.9 million compared to 10.3millioninthesameperiodin2023[159]−Generalandadministrativeexpensesincreasedby10.3 million in the same period in 2023[159] - General and administrative expenses increased by 2.3 million (47%) to 7.0millioninQ22024,primarilyduetosalaryincreases,headcountgrowth,andlegalcostsrelatedtoaproposedacquisition[152]−Salesandmarketingexpensesincreasedby7.0 million in Q2 2024, primarily due to salary increases, headcount growth, and legal costs related to a proposed acquisition[152] - Sales and marketing expenses increased by 1.1 million (42%) to 3.7millioninQ22024,drivenbyinvestmentsinalargersalesandmarketingorganizationandincreasedadvertisingspend[153]CashFlowandFinancialPosition−Cashandcashequivalentsstoodat3.7 million in Q2 2024, driven by investments in a larger sales and marketing organization and increased advertising spend[153] Cash Flow and Financial Position - Cash and cash equivalents stood at 28.2 million as of June 30, 2024, with an accumulated deficit of 159.9millionandrecurringlossesexpectedtocontinue[169]−Cashusedinoperatingactivitieswas159.9 million and recurring losses expected to continue[169] - Cash used in operating activities was 12.0 million in the six months ended June 30, 2024, primarily due to a net loss of 14.9millionanda14.9 million and a 1.2 million net decrease in operating assets and liabilities[172] - The company entered into a non-cancelable five-year cloud computing contract in May 2024, with a total commitment of 5.3millionovertheperiod[177]−TotalcontractualobligationsasofJune30,2024,amountedto5.3 million over the period[177] - Total contractual obligations as of June 30, 2024, amounted to 32.0 million, including 21.2millionindebtobligationsand21.2 million in debt obligations and 5.5 million in operating lease obligations[177] - The company has no off-balance sheet arrangements as of June 30, 2024[178] Operational Challenges - Civil unrest in Bangladesh has affected operations, with internet shutdowns impacting service delivery[130] - Approximately 75% of employees are based in Bangladesh, serving 40% of clinicians[130] Customer Service and Product Impact - Company delivered approximately 70,000 notes to customers each week in Q2 2024[124] - Products save clinicians up to three hours each day, which can be redeployed to see more patients or improve work-life balance[124] Mergers and Acquisitions - Company entered into Merger Agreement with Commure, Inc. on July 19, 2024, with Per Share Price of $2.35[128]