NEW YORK – Cue Health said after the close of the market on Wednesday that its first quarter revenues grew 178 percent year over year.
For the three months ended March 31, the San Diego-based diagnostic test developer posted $179.4 million in revenues compared to $64.5 million in Q1 2021 and beat the analysts' average estimate of $175.2 million.
Product revenues were $177.5 million, up 175 percent compared to $64.5 million in Q1 2021, while grant and other revenues were almost $2.0 million compared to none a year ago.
The company said it has shipped more than 235,000 Cue Readers through the end of Q1, including more than 72,000 readers in the quarter.
In the recently completed quarter, the company "made excellent progress on [its] menu expansion activities, with all of our programs on track or ahead of schedule," CEO and Cofounder Ayub Khattak said in a statement.
Khattak said on a conference call to discuss the financial results that in the recently completed quarter, Cue Health's private sector revenues grew to almost $176 million from $2 million in Q1 2021.
To target private sector customers, the firm employs a multi-prong approach, which includes marketing to large healthcare networks that enable access to its COVID-19 test. For instance, Cue Health recently added Johns Hopkins University and the University of Pittsburgh Medical Centers to its customer base, Khattak said.
Further, the firm's relationship with distributors enables it to access a "more fragmented" segment of the market, including doctors' offices and urgent care clinics, according to Khattak. Cue Health has inked distribution agreements with Cardinal Health, Henry Schein, McKesson, and Medline.
Additionally, under an agreement with grocery store chain Albertsons, the point-of-care test developer is expanding its presence in retail stores. At the end of the quarter, it had placed COVID-19 tests in more than 1,000 of the retailer's pharmacies throughout the US, Khattak noted.
Cue Health noted that it recently filed a de novo submission to the US Food and Drug Administration to obtain full clearance for its molecular Cue Covid-19 Test for at-home and point-of-care use.
"This is a real milestone in the movement of healthcare information and access into the home and into the point of care, and it paves the way for future submissions as we seek to address a wide range of diseases and conditions," Khattak said.
Clinical studies for its influenza test are nearing completion, with full submission to the FDA expected in Q3, the firm said. Further, it is starting clinical studies for its Flu + COVID multiplex test ahead of schedule this quarter and expects to begin clinical studies for an RSV test in Q3 and a Chlamydia + Gonorrhea multiplex test in the second half of this year.
In the second half of this year, the company expects to launch a test-to-treat feature within its digital health platform. "Cue Health customers will soon be able to leverage virtual care and request delivery of prescriptions to their home within hours, all in the Cue Health app," Khattak said.
Cue Health reported a Q1 net income of $2.8 million, or $.02 per share, compared to $13.0 million, or $.08 per share, in Q1 a year ago, and beat the consensus Wall Street estimate for a loss of $.05 per share.
The company's R&D costs rose more than threefold year over year to $28.8 million from $7.4 million, while its SG&A expenses grew almost fivefold year over year to $61.0 million from $12.3 million.
Cue Health exited Q1 with $426.5 million in cash and cash equivalents and $13.8 million in restricted cash.
The company said it expects second quarter revenues of $50 million to $55 million.
Cue Health shares were down 11 percent to $4.38 in Thursday morning trading on the Nasdaq.