NEW YORK (GenomeWeb) – NantHealth reported after the close of the market on Wednesday that its revenues grew 25 percent year over year, but still fell short of the analysts' average estimate.
For the three months ended Dec. 31, 2017, the company posted $22.3 million in revenues, up from $17.8 million in Q4 2016, but short of the consensus Wall Street estimate of $23.3 million.
Total software-related revenues were up 16 percent year over year to $17.5 million from $15.1 million. Maintenance revenues grew 5 percent to $2.2 million from $2.1 million, sequencing and molecular analysis rose 18 percent to $569,000 from $482,000, and other services shot up to $2.0 million from $180,000.
On a conference call following the release of the company's financial results, NantHealth CEO and Chairman Patrick Soon-Shiong said GPS Cancer test revenues grew threefold over the year-ago quarter, though he did not provide a dollar figure. He said that in Q4 2017, 606 GPS tests were ordered, up from 325 in Q4 2016, an 86 percent spike.
CFO Paul Holt noted, though, that revenue growth from GPS tests did not increase at the same rate, due to a greater portion of patients with non-contracted payors who ordered the test in the currently completed quarter compared to a year ago.
During the first quarter of 2018, NantHealth submitted a 510(k) application to the US Food Administration for the GPS Cancer test.
In August, NantHealth announced a restructuring plan that included 300 layoffs and the sale to Allscripts of its provider/patient engagement assets. Q4 was the first full quarter that the plan was implemented, and Holt said that NantHealth had a cash burn of $11.8 million during the three months, which was down from $19. 2 million in Q3.
"This represents the slowest quarterly cash burn since our IPO," he said.
NantHealth reduced its R&D costs 19 percent year over year to $8.8 million from $10.8 million, but it increased its SG&A spending 27 percent to $20.8 million from $16.4 million.
It cut its net loss for Q4 2017 to $21.6 million, or $.20 per share, from a net loss of $60.0 million, or $.49 per share, in Q4 2016. On an adjusted basis, it had a net loss per share of $.07 for the recently completed quarter and beat the consensus Wall Street estimate of a loss of $.14 per share.
For full-year 2017, NantHealth recorded an 8 percent year-over-year increase in revenues to $86.7 million from $80.4 million.
Software-related revenues grew 6 percent year over year to $66.8 million from $63.0 million, while maintenance revenues rose 14 percent $10.4 million from $9.1 million. Sequencing and molecular analysis increased sharply to $2.6 million from $604,0000, and other services were trimmed 12 percent to $6.9 million from $7.8 million.
Its R&D costs were cut 28 percent to $33.9 million from $47.3 million, and its SG&A costs were sliced 29 percent to $75.0 million from $105.3 million.
The firm's net loss for 2017 was $175.2 million, or $1.49 per share, compared to a net loss of $184.1 million, or $1.69 per share, in 2016. It had a net loss of $.47 per share on an adjusted basis, and beat the consensus Wall Street estimate of a loss of $.70 per share.
NantHealth ended 2017 with $61.7 million in cash and cash equivalents.