DermTech reports Q3 EPS (57c), consensus (76c)

Reports Q3 revenue $3.9M, consensus $3.9M. “We’re just a few months into our strategy of prioritizing reimbursed tests and growing revenue and are seeing faster progress than we expected,” said Bret Christensen, CEO, DermTech. “We significantly improved many of our key performance indicators in the third quarter. We grew ASP and test revenue on a year-over-year and sequential basis. In addition, we expanded our Medicare proportion of billable samples from 23 percent to a record high of 27 percent in the last two quarters and increased our proportion of tests that are reimbursed. We believe monetizing our already significant demand is the best way to reach a meaningful revenue inflection point while managing our balance sheet. Our operating expenses substantially declined in the third quarter even with solid revenue growth, and excluding non-recurring costs related to our restructuring actions, our net cash burn declined from approximately $100 million for the full-year 2022 to approximately $65 million annually based on the third quarter run rate – a 35 percent decrease. Overall, we believe revenue should grow year-over-year in 2023 and our cash runway should extend into the first quarter of 2025.”