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Akoya Biosciences Reports First Quarter 2024 Financial Results

MARLBOROUGH, Mass., May 13, 2024 (GLOBE NEWSWIRE) — Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial Biology Company®, today announced its financial results for the first quarter ending March 31, 2024.

Business Highlights

“While we made meaningful progress in advancing both our operational and clinical objectives, our first quarter results fell short of expectations due to three main factors. First, systemic pressure on capital expenditures persisted. Second, certain pharmaceutical partner lab services revenue were deferred to the second half of 2024 due to revised clinical trial milestones. Third, the completion and launch of our fully operational Manufacturing Center of Excellence temporarily impacted reagent fulfillment times, delaying instrument purchases,” said Brian McKelligon, CEO of Akoya Biosciences. “With the industry’s leading installed base, normalization of pharmaceutical partner revenue in the second half of 2024, and now resolved reagent availability issues, we believe that our foundational initiatives will lead us back to strong top-line growth and achievement of our profitability objectives.”

First Quarter 2024 Financial Results

2024 Financial Outlook

Akoya is updating its revenue outlook for the full year 2024 while maintaining its commitment to achieving operating cash flow breakeven by year end. The Company now expects full year 2024 revenue to be in the range of $104.0-$112.0 million.

Webcast and Conference Call Details

Akoya will host a conference call today, May 13, 2024, at 5:00 p.m. Eastern Time to discuss its first quarter 2024 financial results. Investors interested in listening to the conference call are required to register online. A live webcast of the conference call will be available on the “Investors” section of the Company’s website at https://investors.akoyabio.com/. The webcast will be archived on the website following the completion of the call for three months.

Non-GAAP Financial Measures

In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”), Akoya is including in this press release “non-GAAP adjusted gross profit,” “non-GAAP adjusted gross margin,” “non-GAAP operating expense,” and “non-GAAP loss from operations,” all of which are non-GAAP financial measures. Akoya defines non-GAAP adjusted gross profit as gross profit margin adjusted for certain excess and obsolete inventory charges. Non-GAAP adjusted gross margin is defined as non-GAAP adjusted gross profit divided by total revenue. Akoya defines non-GAAP operating expense as operating expense adjusted for impairment and restructuring charges. Akoya defines non-GAAP loss from operations as loss from operations adjusted for certain excess and obsolete inventory charges, impairment, and restructuring charges.

Akoya includes these non-GAAP financial measures because it believes they allow investors to understand and evaluate the Company’s core operating performance and trends. In particular, the exclusion of certain items in calculating non-GAAP adjusted gross profit, non-GAAP adjusted gross margin, non-GAAP operating expense, and non-GAAP loss from operations can provide useful measures for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate non-GAAP adjusted gross profit, non-GAAP adjusted gross margin, non-GAAP operating expense, and non-GAAP loss from operations differently than Akoya does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.

Forward-Looking Statements

This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including statements regarding our expectations for full year 2024 revenue, our growth prospects, our ability to achieve operating cash flow breakeven, projected timing for achieving operating cash flow breakeven, our expectations regarding our ability to market, sell and meet demand for our products and services, our expectations regarding our current and potential partnerships and collaborations, and other statements regarding our business strategies, use of capital, results of operations, financial and operational performance and plans and objectives for future operations.

In some cases, you can identify forward-looking statements by the words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. We caution you that forward-looking statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. As a result, the forward-looking statements may not prove to be accurate. The forward-looking statements in this press release represent our views as of the date hereof. We undertake no obligation to update any forward-looking statements for any reason, except as required by law.

About Akoya Biosciences

As The Spatial Biology Company®, Akoya Biosciences’ mission is to bring context to the world of biology and human health through the power of spatial phenotyping. The Company offers comprehensive single-cell imaging solutions that allow researchers to phenotype cells with spatial context and visualize how they organize and interact to influence disease progression and response to therapy. Akoya offers a full continuum of spatial phenotyping solutions to serve the diverse needs of researchers across discovery, translational and clinical research: PhenoCode™ Panels and PhenoCycler®, PhenoImager® Fusion and PhenoImager HT Instruments. To learn more about Akoya, visit www.akoyabio.com.

Investor Contact:

Priyam Shah
investors@akoyabio.com 

Media Contact:

Christine Quern
media@akoyabio.com

 
AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
 
       March 31, 2024      December 31, 2023
Assets                
Current assets                
Cash and cash equivalents   $ 13,039     $ 83,125  
Marketable securities     48,536        
Accounts receivable, net     13,473       16,994  
Inventories, net     22,988       17,877  
Prepaid expenses and other current assets     3,793       3,794  
Total current assets     101,829       121,790  
Property and equipment, net     8,964       10,729  
Demo inventory, net     726       893  
Intangible assets, net     16,699       17,412  
Goodwill     18,262       18,262  
Operating lease right of use assets, net     5,568       8,365  
Financing lease right of use assets, net     1,348       1,562  
Other non-current assets     1,354       1,356  
Total assets   $ 154,750     $ 180,369  
Liabilities and Stockholders’ Equity                
Current liabilities                
Accounts payable, accrued expenses and other current liabilities   $ 23,209     $ 25,209  
Current portion of operating lease liabilities     2,654       2,681  
Current portion of financing lease liabilities     718       767  
Deferred revenue     6,612       6,688  
Total current liabilities     33,193       35,345  
Deferred revenue, net of current portion     2,928       3,193  
Long-term debt, net     75,469       75,254  
Contingent consideration liability, net of current portion     4,015       5,765  
Operating lease liabilities, net of current portion     5,713       6,238  
Financing lease liabilities, net of current portion     634       766  
Other long-term liabilities     75       38  
Total liabilities     122,027       126,599  
Total stockholders’ equity     32,723       53,770  
Total liabilities and stockholders’ equity   $ 154,750     $ 180,369  
 
AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)
 
    Three months ended
    March 31,    March 31, 
       2024        2023  
Revenue:            
Product revenue   $ 12,140     $ 15,524  
Service and other revenue     6,210       5,886  
Total revenue     18,350       21,410  
Cost of goods sold:            
Cost of product revenue     6,723       5,751  
Cost of service and other revenue     3,248       3,366  
Total cost of goods sold     9,971       9,117  
Gross profit     8,379       12,293  
Operating expenses:            
Selling, general and administrative     19,863       23,124  
Research and development     5,554       6,378  
Change in fair value of contingent consideration     179       227  
Impairment     2,971        
Restructuring     1,397        
Total operating expenses     29,964       29,729  
Loss from operations     (21,585 )     (17,436 )
Other income (expense):            
Interest expense     (2,612 )     (2,054 )
Interest income     937       765  
Other expense, net     (161 )     (48 )
Loss before provision for income taxes     (23,421 )     (18,773 )
Provision for income taxes     (63 )     (29 )
Net loss   $ (23,484 )   $ (18,802 )
Net loss per share attributable to common stockholders, basic and diluted   $ (0.48 )   $ (0.49 )
Weighted-average shares outstanding, basic and diluted     49,188,170       38,326,024  
 
AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Gross Profit to Non-GAAP Adjusted Gross Profit Reconciliation and Calculation of Gross Margin and Non-GAAP Adjusted Gross Margin (unaudited)
(in thousands)
 
    Three months ended
    March 31,    March 31, 
       2024        2023  
Total revenue   $ 18,350     $ 21,410  
             
Gross profit     8,379       12,293  
Provision for excess and obsolete inventories – product discontinuation and lease exit inventory charges     2,045        
Non-GAAP adjusted gross profit   $ 10,424     $ 12,293  
             
Gross margin     46%       57%  
             
Non-GAAP adjusted gross margin     57%       57%  
 
AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Operating Expense to Non-GAAP Operating Expense Reconciliation (unaudited)
(in thousands)
 
    Three months ended
    March 31,    March 31, 
       2024        2023
Operating expenses   $ 29,964     $ 29,729  
Impairment     (2,971 )      
Restructuring     (1,397 )      
Non-GAAP operating expenses   $ 25,596     $ 29,729  
 
AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Loss From Operations to Non-GAAP Loss From Operations Reconciliation (unaudited)
(in thousands)
 
    Three months ended
    March 31,    March 31, 
       2024        2023  
Loss from operations   $ (21,585 )   $ (17,436 )
Provision for excess and obsolete inventories – product discontinuation and lease exit inventory charges     2,045        
Impairment     2,971        
Restructuring     1,397        
Non-GAAP loss from operations   $ (15,172 )   $ (17,436 )


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