Q4 GAAP EPS of $0.27; Q4 Non-GAAP EPS of $0.22
Grew cash balance to $290.4 million as of December 31, 2023 Enters U.S. Syphilis testing market via strategic distribution agreement with Diagnostics Direct BETHLEHEM, Pa., Feb. 27, 2024 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point-of-care and home diagnostic tests, sample management solutions, and microbiome laboratory and analytical services, today announced its financial results for the three months ended December 31, 2023. “We made meaningful progress on our transformation journey in 2023. We generated significant positive operating cash flow with margin expansion, driven by our enterprise-wide focus on innovating and operating with disciplined execution. We expect to deliver additional productivity gains across our organization, and we are on track to achieve our target of break-even in cash flow from operations for the core business by the end of 2024,” said OraSure President and CEO Carrie Eglinton Manner. She continued, “We are focused on elevating our core growth as volumes under our COVID-19 contracts taper down in 2024 and expect that the trajectory in our key segments will begin to improve later in the year. We are investing in our innovation roadmap, organically and inorganically. Our recent investment and agreement with Sapphiros expands our product pipeline potential, and we continue to increase the breadth of our portfolio through additional partnerships, like with Diagnostics Direct. Overall, we believe the progress we are making positions OraSure to drive profitable growth and create additional shareholder value.” Financial Highlights | | Three Months Ended December 31, | | Years Ended December 31, | | | | 2023 | | | | 2022 | | | % Change
| | | 2023 | | | | 2022 | | | % Change | | Core Business 1 | $ | 34,217 | | | $ | 34,084 | | | — | | % | | $ | 147,693 | | | $ | 144,154 | | | 2 | | % | | COVID-19 | | 41,664 | | | | 88,994 | | | (53 | ) | | | | 257,779 | | | | 243,325 | | | 6 | | | | Total Net Revenue | $ | 75,881 | | | $ | 123,078 | | | (38 | ) | % | | $ | 405,472 | | | $ | 387,479 | | | 5 | | % |
(1) Includes diagnostics, molecular sample management solutions and molecular services, other products and services revenue, and non-product and services revenue.
| | Three Months Ended December 31, | | Years Ended December 31, | | | 2023 | | 2022 | | % Change
| | 2023 | | 2022
| | % Change
| | Net revenues | $ | 75,881 | | | | $ | 123,078 | | | | (38 | ) | % | | $ | 405,472 | | | | $ | 387,479 | | | | 5 | | % | | Gross profit | | 35,126 | | | | | 49,828 | | | | (30 | ) | | | | 171,652 | | | | | 148,438 | | | | 16 | | | | Gross margin | | 46.3 | | % | | | 40.5 | | % | | | | | | | 42.3 | | % | | | 38.3 | | % | | | | | | Non-GAAP gross profit | | 37,737 | | | | | 50,365 | | | | (25 | ) | | | | 184,489 | | | | | 155,265 | | | | 19 | | | | Non-GAAP gross margin | | 49.7 | | % | | | 40.9 | | % | | | | | | | 45.5 | | % | | | 40.1 | | % | | | | | | | | | | | | | | | | | | | | | | | Operating income (loss) | | 3,898 | | | | | 14,621 | | | | (73 | ) | | | | 32,684 | | | | | (22,156 | ) | | | NM | | | | Operating margin | | 5.1 | | % | | | 11.9 | | % | | | | | | | 8.1 | | % | | | (5.7 | ) | % | | | | | | Non-GAAP operating income (loss) | | 13,624 | | | | | 18,580 | | | | (27 | ) | | | | 73,576 | | | | | 22,528 | | | | 227 | | | | Non-GAAP operating margin | | 18.0 | | % | | | 15.1 | | % | | | | | | | 18.1 | | % | | | 5.8 | | % | | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | 20,073 | | | | | 15,801 | | | | 27 | | | | | 53,655 | | | | | (17,133 | ) | | | NM | | | | Non-GAAP net income (loss) | | 16,479 | | | | | 26,282 | | | | (37 | ) | | | | 77,585 | | | | | 25,789 | | | | 201 | | | | GAAP EPS | $ | 0.27 | | | | $ | 0.22 | | | | 23 | | | | $ | 0.72 | | | | $ | (0.24 | ) | | | NM | | | | Non-GAAP EPS | $ | 0.22 | | | | $ | 0.36 | | | | (39 | ) | | | $ | 1.04 | | | | $ | 0.36 | | | | 193 | | |
NM – not meaningful - Total net revenues for the fourth quarter of 2023 decreased 38% to $75.9 million from $123.1 million in the fourth quarter of 2022.
- Core revenue (all revenue excluding COVID-19 revenue) of $34.2 million in the fourth quarter increased 0.4% year-over-year. Core revenue growth was driven by strong HIV sales in the U.S. and international markets, which were partially offset by a decline in non-product revenue.
- COVID-19 revenue of $41.7 million in the fourth quarter decreased 53% year-over-year.
- GAAP gross margin percentage was 46.3% in the fourth quarter of 2023 compared to 40.5% in the fourth quarter of 2022. Non-GAAP gross margins in the fourth quarter of 2023 were 49.7% compared to 40.9% in the fourth quarter of 20221. Gross margins benefited from production efficiencies, cost reduction initiatives, and changes to InteliSwab® packaging that were implemented during the first quarter of 2023.
- GAAP operating income in the fourth quarter of 2023 was $3.9 million compared to $14.6 million in the fourth quarter of 2022. Non-GAAP operating income was $13.6 million in the fourth quarter of 2023 compared to $18.6 million in the fourth quarter of 2022.
- Cash, cash equivalents, and short-term investments increased to $290.4 million as of December 31, 2023. The $65.5 million increase in our cash balance during the fourth quarter of 2023 was primarily driven by our improved operational performance. In addition, during the fourth quarter, we received $24.4 million from the U.S. government related to our manufacturing expansion contract.
Recent Business Highlights - In January, entered into a strategic distribution relationship and investment in Sapphiros, a next generation consumer diagnostics company. Through this strategic partnership, OraSure expects to be able to offer a more comprehensive range of low-cost diagnostic tests and sample management solutions to our customers globally. OraSure has secured exclusive distribution rights to key products in Sapphiros’ development pipeline that align with and enhance OraSure’s existing areas of expertise, including self-collected blood samples and diagnostic tests for sexually transmitted infections, respiratory conditions, and other diseases.
- In February, signed a strategic agreement with Diagnostics Direct to distribute Syphilis Health Check, the first CLIA-waived treponemal test, which delivers point of care results in 10 minutes.
- Established new distribution relationships to expand our product offerings in sample management solutions and substance abuse testing.
- Consolidated one of our distribution facilities into our Opus Way facility in order to drive additional operating efficiencies and cost savings.
- Remain on track to achieve operating cash flow break-even for the core business by the end of 2024.
Financial Guidance The Company is guiding to Q1 2024 revenue of $50 to $54 million, which includes core revenue of $29 to $31 million and InteliSwab® revenue of $21 to $23 million. ______________________________
1 For additional information on non-GAAP financial measures and a reconciliation of the GAAP financial results to non-GAAP financial results, see the schedules below. A description of the adjustments made to the GAAP financial measures is included at the end of the schedules.
Financial Data (Unaudited) | | Three Months Ended December 31, | | Years Ended December 31, | | | | 2023 | | | | 2022 | | | | 2023 | | | | 2022 | | | Results of Operations | | | | | | | | | Net revenues | $ |
|
| Related companies: | OraSure Technologies, Inc. |
|
