Cue Health Inc.

Cue Health reported fourth-quarter revenue of $18.8 million, up from $17.5 million in Q3 2023. Fourth-quarter product gross profit was a loss of $18.4 million, or a loss of $2.7 million after adjusting for one-time inventory charges; GAAP net loss was $148.4 million, or $0.96 per share, and adjusted net loss was $49.1 million, or $0.32 per share. For full-year 2023, revenue was $70.9 million, adjusted net loss was $267.2 million, or $1.75 per share, and adjusted EBITDA was a loss of $163.8 million. Cash at year-end was $80.9 million. For Q1 2024, management guided to revenue of $9 million to $11 million.

Ayub Khattak framed 2023 as a milestone year, citing two FDA authorizations, additional menu expansion across Cue Lab and treatments, and a more than $200 million annualized reduction in cost structure. His message was that the company is shifting from broad buildout to execution on its top priority: expanding the Cue Health Monitoring System menu and driving more pull-through from the installed reader base. He sounded constructive on the pipeline, saying RSV, flu, Herpes+Mpox, and the BARDA-funded multiplex program all support a staged path to more products and more installed readers.

Aasim Javed highlighted that Q4 revenue was $18.8 million, with private-sector sales of $17 million and public-sector revenue of $1.8 million. He said Q4 operating expenses were $48.3 million, down 49% year over year, with sales and marketing at $6.2 million, R&D at $32.2 million, and G&A at $9.9 million. He also noted an $83.6 million noncash impairment charge on manufacturing lines due to low current volumes, year-end cash of $80.9 million, and Q1 revenue guidance of $9 million to $11 million. On capital allocation, he emphasized continued reductions in cash utilization and said the company is evaluating options to bolster the balance sheet.

Analysts focused on why Cue is pursuing stand-alone RSV and flu tests alongside the BARDA-funded multiplex program, and management said both have a place in the market for timing, reimbursement, and risk-mitigation reasons. Questions also centered on why chlamydia/gonorrhea studies were delayed; management said Herpes+Mpox has a lower cash and regulatory burden and could reach revenue sooner, so it was prioritized to preserve cash. On cash runway, management declined to give quarterly cash burn targets but reiterated that utilization is coming down and that the company continues to evaluate ways to strengthen the balance sheet.