Augmedix, Inc.

Revenue for the quarter ended March 31, 2024 was $13.5 million, up 40% from $9.6 million in Q1 2023. Gross margin was 47.1%, up from 45.6% a year ago and down from 49.3% in Q4 2023. Operating loss was $6.4 million versus $5.1 million in Q1 2023, and adjusted EBITDA was a loss of $5.1 million versus a loss of $4.3 million. Cash and cash equivalents were $37.3 million at March 31, 2024, down from $46.2 million at December 31, 2023. For Q2 2024, management expects revenue to be up slightly sequentially and GAAP gross margin to improve by 50 to 100 basis points. For full-year 2024, revenue guidance was reduced to approximately $52 million to $55 million from $60 million to $62 million; management said about 80% of the change relates to Augmedix Live. The company expects to exit 2025 at operating cash flow breakeven before net interest expense.

Manny Krakaris emphasized that the company’s portfolio now spans fully automated Go, hybrid Go Assist, and higher-touch Live, which he said gives customers flexibility by workflow and encounter type. He said adoption of AI in healthcare is accelerating faster than expected, but customers are evaluating options methodically, creating near-term delays in Live expansions and some migrations to lower-priced products. His tone was confident despite the guide-down, framing the mix shift as evidence that Augmedix’s AI-first transition is happening faster and will ultimately strengthen the business.

Paul Ginocchio highlighted the quarter’s 40% revenue growth, 47.1% gross margin, and the improvement from 45.6% a year ago, noting margin benefit from scale and shifting U.S. service clinicians outside the U.S. He said operating expenses were $12.7 million, operating loss was $6.4 million, adjusted EBITDA loss was $5.1 million, and operating cash outflow was $8.2 million; cash ended at $37.3 million. On capital allocation and spending, he said the company is about 60% through its hiring plan and will adjust the remaining hires based on market conditions, while still targeting 2025 cash flow breakeven.

Analysts focused on why guidance was cut, how quickly customers can move from Live to Go Assist, and whether the company can still reach cash flow breakeven in 2025. Management said most of the revenue reduction came from lower Live bookings and current Live users moving to Go Assist, with a 90-day migration window for most contracts and 3-6 months of visibility on product-mix decisions. They also said HCA’s rollout will be broader but paced by change management and system transitions, and that the company can still reach 2025 breakeven even if adjusted EBITDA remains negative.