Cue Health Reports Strong Fourth Quarter and Full Year 2021 Financial Results
Cue Health Inc. (Nasdaq: HLTH), a healthcare technology company, ("Cue") today reported financial results for fourth quarter and full year 2021.
"In the fourth quarter, we made great progress across our growth drivers: building and diversifying our customer base, progressing the expansion of our test menu, and introducing new digital enhancements to our platform," said Ayub Khattak, Chief Executive Office and Co-Founder of Cue Health. "We're driving this momentum into 2022 as we plan to launch a number of clinical studies and make multiple FDA submissions before year-end. With our growing install base of nearly a quarter million Cue Readers and the further integration of our diagnostics with virtual care capabilities, we are executing on our strategy and advancing Cue's mission of making healthcare more timely and accessible for people around the world."
Fourth Quarter 2021 Financial Results
Revenue was $192.5 million for the fourth quarter of 2021, an increase from $13.3 million in the fourth quarter of 2020. The growth was driven by our production capacity ramp through 2021, delivery on our U.S. Department of Defense ("U.S. DoD") contract, and expansion of our customer base across all customer categories.
Private Sector revenue grew to 54.0%, or $104.0M, for the fourth quarter of 2021. This is the first time Private Sector revenues surpassed the Public Sector, reflecting growth in our customer base.
Public Sector revenue was $88.5 million, and accounted for 46.0% of revenues for the fourth quarter of 2021. During the quarter we completed shipment of our contract with the U.S. DoD.
Disposable test cartridge revenue was $165.4 million for the fourth quarter of 2021.
Product gross margin was 46.3% for the fourth quarter of 2021, up from 7.2% in the fourth quarter 2020 due to the scale up production and related efficiencies that resulted in more favorable absorption of fixed costs on a per unit basis in 2021.
Operating expenses for the fourth quarter of 2021 were $66.3 million, excluding cost of revenues, compared to $19.0 million for the fourth quarter of 2020. The increase was driven by growth in our overall organization, digital marketing spend, and spend related to product development.
Net income was $34.2 million for the fourth quarter of 2021 compared to net loss of $19.5 million in the fourth quarter of 2020. Earnings per diluted share was $0.22 for the fourth quarter of 2021 compared to a loss of $1.16 per diluted share in the fourth quarter 2020.
Full Year 2021 Financial Results
Revenue was $618.1 million for the full year 2021, an increase from $23.0 million for the full year 2020.
Public Sector revenue was $385.3 million, an increase from $16.4 million for the prior year.
Private Sector revenue was $232.8 million, an increase from $6.5 million for the prior year.
Product gross margin was 55.1%, an increase from 2.9% for the prior year.
Operating expenses, excluding cost of revenues, were $151.3 million, compared to $53.1 million for the prior year.
Net income was $86.4 million, an increase from a net loss $47.4 million for the prior year. Earnings per diluted share was $0.59, compared to a loss of $2.90 for the prior year.
Adjusted net income was $164.5 million, an increase from a net loss of $47.4 million for the prior year.
Cash and cash equivalents were $409.9 million as of December 31, 2021.
Cue Health expects first quarter 2022 revenues in the range of $170 million to $180 million.
About Cue Health
Cue Health (Nasdaq: HLTH) is a healthcare technology company that makes it easy for individuals to access health information and places diagnostic information at the center of care. Cue Health enables people to manage their health through real-time, actionable, and connected health information, offering individuals and their healthcare providers easy access to lab-quality diagnostics anywhere, anytime, in a device that fits in the palm of the hand. Cue Health's first-of-its-kind COVID-19 test was the first FDA-authorized molecular diagnostic test for at-home and over-the-counter use without a prescription and physician supervision. Outside the United States, Cue Health has received the CE mark in the European Union, Interim Order authorization from Health Canada, regulatory approval from India's Central Drugs Standard Control Organisation, and PSAR authorization from Singapore's Health Sciences Authority. Cue Health was founded in 2010 and is headquartered in San Diego. For more information, please visit www.cuehealth.com.
Statements in this press release about future expectations, plans and prospects, including statements related to the commencement of any clinical studies, the submission of any FDA applications, potential technology enhancements and future performance and our guidance, including first quarter 2022 guidance, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements". The words, without limitation, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," "develop," "progress," "expand" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including those related to the expected capabilities of the new Omicron-specific genotyping Cue test, our ability to maintain customer growth rates, our ability to increase private sector revenue, our ability maintain or replace the revenue historically generated from our government contracts, our ability to effectively scale our manufacturing capacity to meet contractual obligations with our customers and market demand, and the factors discussed in the "Risk Factors" section of Cue's Annual Report on Form 10-K for the year ended December 31, 2021 to be filed with the SEC. Any forward-looking statements contained in this press release are based on the current expectations of Cue's management team and speak only as of the date hereof, and Cue specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
This product has not been FDA cleared or approved; but has been authorized by FDA under an Emergency Use Authorization, or EUA. This product has been authorized only for the detection of nucleic acid from SARS-CoV-2, not for any other viruses or pathogens. The emergency use of this product is only authorized for the duration of the declaration that circumstances exist justifying the authorization of emergency use of in vitro diagnostics for detection and/or diagnosis of COVID-19 under Section 564(b)(1) of the Federal Food, Drug and Cosmetic Act, 21 U.S.C. § 360bbb-3(b)(1), unless the declaration is terminated or authorization is revoked sooner.