Akoya Reports Record Revenue in the First Quarter of 2023

Q1 2023 revenue $21.4 million, 27% y/y growth
Reiterating FY 2023 revenue guidance range of $95-98 million

MARLBOROUGH, Mass., May 08, 2023 (GLOBE NEWSWIRE) — Akoya Biosciences, Inc. (Nasdaq: AKYA) (“Akoya”), The Spatial Biology Company®, today announced its financial results for the first quarter ending March 31, 2023.

“Akoya started the year strong, highlighted by record quarterly revenue and our 1000th spatial instrument placement in April, the largest installed base in the rapidly growing spatial biology industry,” said Brian McKelligon, Chief Executive Officer, Akoya Biosciences. “We continue to see robust growth and rising interest in our platforms across the discovery, translational, and clinical markets, as well as strong traction with our new product offerings. Our targeted investments in product development, commercial expansion, and business infrastructure have positioned us well to continue to drive long-term growth, while moving towards business profitability.”

First Quarter 2023 Financial Highlights

Total revenue was $21.4 million in the first quarter of 2023, compared to $16.9 million in the prior year period; an increase of 26.6%.Product revenue (which includes instruments, reagents, and software) was $15.5 million in the first quarter of 2023, compared to $13.3 million in the prior year period; an increase of 16.5%. Instrument revenue was $9.6 million, compared to $8.5 million; an increase of 12.9%.Reagent revenue was $5.7 million, compared to $4.6 million; an increase of 23.9%. Service and other revenue totaled $5.9 million in the first quarter of 2023, compared to $3.6 million in the prior year period; an increase of 63.9%.Gross profit was $12.3 million and gross profit margin was 57.4% in the first quarter of 2023.58 instruments were sold in the first quarter of 2023; 19 PhenoCyclers, 39 PhenoImagers (which includes Fusion and HT); compared to 51 instruments sold in the prior year period (14 PhenoCyclers, 37 PhenoImagers).Instrument installed base of 992 as of March 31, 2023 (273 PhenoCyclers, 719 PhenoImagers); compared to an installed base of 748 in the prior year period (196 PhenoCyclers, 552 PhenoImagers); an increase of 33%.Combined-unit PhenoCycler-Fusion installed base of 128 as of March 31, 2023; compared to 23 in the prior year period.$60.2 million of cash and cash equivalents as of March 31, 2023, with $11.3 million in additional debt capacity.

First Quarter 2023 Business Highlights

As of March 31, 2023, there have been 860 total publications featuring Akoya’s platforms; 62% growth from 530 total publications as of March 31, 2022.Akoya shipped its 1000th instrument in April, a major milestone for the company and the largest installed base in the spatial biology industry.At the 2023 American Association of Cancer Research (AACR) conference held from April 16-19, Akoya launched two new commercial product offerings, including the high-plex modular PhenoCode Discovery Panels on the PhenoCycler-Fusion platform, to further increase speed and simplicity of the workflow, and the partnered Enable Medicine Cloud Platform, for enhanced and rapid data analysis of high-plex images, with the potential to improve outcomes in both clinical and research settings.Johnny Ek appointed as new Chief Financial Officer, who brings more than 20 years of financial leadership experience across the diagnostics and life sciences tools industries, and Joe Driscoll has retired after more than four successful years as Chief Financial Officer.Jennifer Kamocsay appointed as Akoya’s first General Counsel, who brings over a decade of experience as a corporate and M&A attorney, to oversee all company legal activities and provide strategic guidance and corporate governance oversight.

2023 Financial Outlook

The Company, based on its current plans and initiatives, continues to expect full year 2023 revenue guidance range of $95-98 million.

Webcast and Conference Call Details

Akoya will host a conference call today, May 8, 2023, at 5:00 p.m. Eastern Time to discuss its first quarter 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 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 ability to execute on our plans and expectations, our research and development efforts and other matters regarding our business strategies, future performance, 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
investors@akoyabio.com 

Media Contact:

Christine Quern
617-650-8497
media@akoyabio.com 

AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)

            March 31, 2023    December 31, 2022Assets        Current assets      Cash and cash equivalents $ 60,247 $ 74,229Marketable securities   —   6,989Accounts receivable, net   12,943   9,729Inventories, net   14,507   14,486Prepaid expenses and other current assets   3,977   6,764Total current assets   91,674   112,197Property and equipment, net   10,425   10,174Demo inventory, net   1,967   2,084Intangible assets, net   19,496   20,048Goodwill   18,262   18,262Operating lease right of use assets, net   10,187   10,785Financing lease right of use assets, net   1,290   1,490Other non-current assets   996   991Total assets $ 154,297 $ 176,031Liabilities and Stockholders’ Equity      Current liabilities      Accounts payable, accrued expenses and other current liabilities $ 22,983 $ 27,147Current portion of operating lease liabilities   2,975   3,009Current portion of financing lease liabilities   608   620Deferred revenue   6,657   6,279Total current liabilities   33,223   37,055Deferred revenue, net of current portion   2,545   2,114Long-term debt, net   63,455   63,277Contingent consideration liability, net of current portion   4,626   6,039Operating lease liabilities, net of current portion   7,698   8,203Financing lease liabilities, net of current portion   539   675Other long-term liabilities   87   87Total liabilities   112,173   117,450Total stockholders’ equity   42,124   58,581Total liabilities and stockholders’ equity $ 154,297 $ 176,031 

AKOYA BIOSCIENCES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

         Three months ended   March 31,  March 31,      2023    2022Revenue:        Product revenue $ 15,524  $ 13,343 Service and other revenue   5,886    3,551 Total revenue   21,410    16,894 Cost of goods sold:        Cost of product revenue   5,751    4,080 Cost of service and other revenue   3,366    2,718 Total cost of goods sold   9,117    6,798 Gross profit   12,293    10,096 Operating expenses:        Selling, general and administrative   21,758    18,193 Research and development   5,773    5,714 Change in fair value of contingent consideration   227    200 Depreciation and amortization   1,971    1,543 Total operating expenses   29,729    25,650 Loss from operations   (17,436)   (15,554)Other income (expense):        Interest expense   (2,054)   (749)Interest income   765    22 Other expense, net   (48)   (96)Loss before provision for income taxes   (18,773)   (16,377)Provision for income taxes   (29)   (22)Net loss $ (18,802) $ (16,399)Net loss per share attributable to common stockholders, basic and diluted $ (0.49) $ (0.44)Weighted-average shares outstanding, basic and diluted   38,326,024    37,464,496