NEW YORK – Cue Health on Wednesday afternoon announced a massive year-over-year uptick in revenues for the third quarter, easily beating the consensus Wall Street expectation.
For the three months ended Sept. 30, the San Diego-based diagnostic test development company, which went public in September, posted $223.7 million in revenues compared to $4.7 million in Q3 a year ago. The analysts' average estimate was $200.3 million.
Product revenues were $222.6 million compared to $2.1 million in Q3 2020, while grant and other revenues decreased to $1.1 million from $2.6 million.
The company recorded public sector revenue of $129.5 million compared to $105 million in Q2 2021, an increase driven by additional deliveries to the US Department of Defense and the US Department of Health & Human Services under an existing agreement, Cue Health said.
It posted $94.2 million in private sector revenue, up from $32.4 million in the prior quarter, on "significant additions to the enterprise and provider customer base," the firm said.
Disposable test cartridge revenue in Q3 2021 was $179.0 million, up 74 percent from the prior quarter.
The company offers the Cue Health Monitoring System, which consists of a portable reader with a single-use test cartridge and a sample collection wand. Its COVID-19 Test Kit received Emergency Use Authorization from the US Food and Drug Administration last year for use by CLIA-certified labs or at the point of care.
The test also received EUA for home and over-the-counter use in March, making it the first molecular test authorized by the agency for home use without a prescription.
Cue Health had a net income of $19.3 million, or $.13 per share, in the recently completed quarter compared to a net loss of $8.5 million, or $.52 per share, in Q3 a year ago. The consensus Wall Street EPS estimate was $1.48.
The weighted-average number of shares used to compute net income per share in Q3 was 39.3 million, whereas it was 16.6 million in Q3 of 2020.
The company's R&D costs grew 32 percent year over year to $9.1 million from $6.9 million, while its SG&A expenses grew more than tenfold to $38.7 million from $3.7 million.
Cue Health exited the third quarter with $446.6 million in cash and cash equivalents and $12.0 million in restricted cash.
The company said full-year 2021 revenues are expected to be in the range of $580 million to $590 million.