NEW YORK – Cue Health announced after the close of the market on Wednesday that its fourth quarter 2022 revenues declined 24 percent but beat the consensus Wall Street estimate.
For the three months ended Dec. 31, the San Diego-based diagnostic test development company posted $146.8 million in revenues, including $92.4 million in deferred revenues related to its agreement with the US Department of Defense, down from $192.5 million in Q4 a year ago. Excluding the deferred revenues, Q4 revenues were $54.4 million. The analysts' average estimate was $47.8 million.
The company noted in a statement that it saw stronger than anticipated COVID-19 testing orders from existing customers in the fourth quarter.
Product revenues were $145.7 million, also down 24 percent compared to $191.3 million in Q4 2021, while grant and other revenues were $1.1 million, slightly down from $1.2 million a year ago.
The company recorded public sector revenues of $94.4 million, up 7 percent from $88.5 million in Q4 2021. Excluding deferred revenues, public sector revenues were $1.9 million. Cue posted $52.4 million in private sector revenues, dropping 50 percent from $104.0 million in Q4 2021. Private sector revenues made up 36 percent of Cue's total revenues.
Disposable test cartridge revenues in Q4 2022 were $50.5 million, down 70 percent from $165.4 million in the prior-year quarter.
Cue Health had a net loss of $31.5 million, or $.21 per share, in the recently completed quarter compared to a net income of $34.2 million, or $.22 per share, in Q4 a year ago. The consensus Wall Street loss per share estimate was $.51.
Full-year revenues for 2022, meantime, were $483.5 million, declining 22 percent compared to $618.1 million in 2021. It beat the Wall Street estimate of $385.1 million in revenues for the year, although excluding deferred revenues, the full-year total was $391.1 million.
Product revenues were $474.2 million, decreasing 23 percent compared to $615.8 million in 2021. Grant and other revenues were $9.3 million, tripling from $2.3 million a year ago.
Public sector revenues were $108.8 million, down 72 percent from $385.3 million in 2021, while private sector revenues were $374.7 million, up 61 percent from $232.8 million in the prior-year quarter.
Net loss for the year was $194.1 million, or $1.31 per share, compared to net income of $86.4 million, or $.59 per share, in 2021. The firm beat the consensus Wall Street estimate of a loss of $1.56 per share.
Cue Health exited the year with $241.5 million in cash and cash equivalents. It also executed a cost reduction plan that is expected to result in cash savings of approximately $100 million on an annual basis, the company said.
The firm added that Q1 2023 revenues are expected to be in the range of $20 million to $25 million.