Akoya Reports Record Revenue in the Fourth Quarter of 2023 and Provides Full Year 2024 Financial Outlook

Q4 2023 revenue $26.5 million and FY 2023 revenue $96.6 million
Guiding FY 2024 revenue range $114.0-118.0 million and operating cash flow breakeven by YE 2024

MARLBOROUGH, Mass., March 04, 2024 (GLOBE NEWSWIRE) -- Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial Biology Company, today announced its financial results for the fourth quarter and full year ending December 31, 2023.

“Akoya's successful 2023 performance reflects the high demand for our leading spatial biology solutions and effective execution of our financial and strategic plan,” said Brian McKelligon, CEO of Akoya Biosciences. “We expanded our installed base to nearly 1,200 instruments, improved platform speeds, and simplified workflows with new offerings of reagents and analysis tools. We anticipate strong topline growth in 2024 and operating cash flow breakeven by year end.”

Fourth Quarter 2023 Financial Highlights

• Revenue was $26.5 million in the fourth quarter of 2023, compared to $21.2 million in the prior year period; an increase of 25.0%. This increase was primarily due to higher reagents and services revenue.
• Gross margin was 62.7% in the fourth quarter of 2023, compared to 56.8% in the prior year period. The increase in gross margin was primarily driven by product mix and improved margin on the product business.
• Operating expense was $26.1 million for the fourth quarter of 2023, compared to $29.6 million in the prior year period; a decrease of 11.8%. The decrease was primarily driven by further realized operating leverage and efficiencies.
• Operating loss was $9.4 million for the fourth quarter of 2023, compared to an operating loss of $17.6 million in the prior year period; a decrease of 46.6%.
• $83.1 million of cash and cash equivalents as of December 31, 2023.
  

Fourth Quarter 2023 Business Highlights

• Announced a license and distribution agreement with Thermo Fisher Scientific to deliver spatial multiomic workflow by combining Akoya’s market leading spatial biology solutions with ViewRNA technology to enable rapid, whole-slide imaging of RNA and protein biomarkers.
• Announced the formation of a new Scientific Advisory Board with initial members consisting of global experts in immunobiology: James Allison, Ph.D., former Akoya director Garry Nolan, Ph.D., and Padmanee Sharma, M.D., Ph.D.
• Announced deployment of the MaxFuse algorithm co-developed by Dr. Garry Nolan and his laboratory at Stanford University for multiomic integration of spatial and single-cell data on the Enable Medicine platform.
  

Full Year 2023 Financial and Business Highlights

• Revenue was $96.6 million for the year ended December 31, 2023, compared to $74.9 million in the prior year; an increase of 29.0%.
• Gross margin was 58.3% for the year ended December 31, 2023, compared to 58.0% in the prior year period.
• Operating expense was $114.0 million for the year ended December 31, 2023, compared to $109.5 million in the prior year period; an increase of 4.1%.
• Operating loss was $57.7 million for the year ended December 31, 2023, compared to an operating loss of $66.1 million in the prior year period; a decrease of 12.7%.
• Instrument installed base of 1,183 as of December 31, 2023 (342 PhenoCyclers, 841 PhenoImagers), compared to an installed base of 934 in the prior year period (254 PhenoCyclers, 680 PhenoImagers); an increase of 26.7%.
• 1,160 total publications citing Akoya’s technology as of December 31, 2023, compared to 772 total publications in the prior year period: an increase of 50.3%.

2024 Financial Outlook

The Company, based on its current plans and initiatives, expects full year 2024 revenue guidance range of $114.0-118.0 million and projects operating cash flow breakeven by year end.

Webcast and Conference Call Details

Akoya will host a conference call today, March 4, 2024, at 5:00 p.m. Eastern Time to discuss its fourth quarter and full year 2023 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.

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 anticipated topline growth in 2024, our ability to achieve operating cash flow breakeven, projected timing for achieving operating cash flow breakeven, our expectations regarding our ability to market and sell our PhenoCycler and PhenoImager platforms and our other products and services, our ability to increase awareness of spatial biology technology, our research and development efforts, our expectations with respect to our current or future RUO or CDx business, and other statements regarding our business strategies, use of capital, results of operations and financial position 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
Sr. Director, Investor Relations
Akoya Biosciences
[e-mail]

Media Contact:

Christine Quern
617-650-8497
[e-mail]

AKOYA BIOSCIENCES, INC. AND SUBSIDIARY Condensed Consolidated Balance Sheets (unaudited) (in thousands)
		December 31, 2023			December 31, 2022
Assets
Current assets
Cash and cash equivalents		$	83,125		$	74,229
Marketable securities			—			6,989
Accounts receivable, net			16,994			9,729
Inventories, net			17,877			14,486
Prepaid expenses and other current assets			3,794			6,764
Total current assets			121,790			112,197
Property and equipment, net			10,729			10,174
Demo inventory, net			893			2,084
Intangible assets, net			17,412			20,048
Goodwill			18,262			18,262
Operating lease right of use assets, net			8,365			10,785
Financing lease right of use assets, net			1,562			1,490
Other non-current assets			1,356			991
Total assets		$	180,369		$	176,031
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable, accrued expenses and other current liabilities		$	25,209		$	27,147
Current portion of operating lease liabilities			2,681			3,009
Current portion of financing lease liabilities			767			620
Deferred revenue			6,688			6,279
Total current liabilities			35,345			37,055
Deferred revenue, net of current portion			3,193			2,114
Long-term debt, net			75,254			63,277
Contingent consideration liability, net of current portion			5,765			6,039
Operating lease liabilities, net of current portion			6,238			8,203
Financing lease liabilities, net of current portion			766			675
Other long-term liabilities			38			87
Total liabilities			126,599			117,450
Total stockholders' equity			53,770			58,581
Total liabilities and stockholders' equity		$	180,369		$	176,031

AKOYA BIOSCIENCES, INC. AND SUBSIDIARY Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts)
		Three months ended								Year ended
		December 31,				December 31,				December 31,				December 31,
		2023				2022				2023				2022
Revenue:
Product revenue		$	16,691			$	15,708			$	67,410			$	57,650
Service and other revenue			9,796				5,511				29,223				17,209
Total revenue			26,487				21,219				96,633				74,859
Cost of goods sold:
Cost of product revenue			6,031				6,214				25,778				20,947
Cost of service and other revenue			3,836				2,959				14,550				10,522
Total cost of goods sold			9,867				9,173				40,328				31,469
Gross profit			16,620				12,046				56,305				43,390
Operating expenses:
Selling, general and administrative			18,898				20,948				82,381				79,653
Research and development			4,670				6,433				21,889				23,211
Change in fair value of contingent consideration			617				497				1,636				(102	)
Depreciation and amortization			1,874				1,759				8,067				6,734
Total operating expenses			26,059				29,637				113,973				109,496
Loss from operations			(9,439	)			(17,591	)			(57,668	)			(66,106	)
Other income (expense):
Interest expense			(2,293	)			(1,847	)			(8,761	)			(4,554	)
Interest income			913				564				3,489				777
Other expense, net			(5	)			(27	)			(343	)			(635	)
Loss before (provision) benefit for income taxes			(10,824	)			(18,901	)			(63,283	)			(70,518	)
(Provision) benefit for income taxes			22				26				(40	)			(123	)
Net loss		$	(10,802	)		$	(18,875	)		$	(63,323	)		$	(70,641	)
Net loss per share attributable to common stockholders, basic and diluted		$	(0.22	)		$	(0.50	)		$	(1.43	)		$	(1.87	)
Weighted-average shares outstanding, basic and diluted			49,089,712				38,002,409				44,434,570				37,746,915