Cue Health Reports Q3 Profit On Higher Sales, Annual Guidance Above Consensus

Cue Health Inc HLTH reported Q3 sales of $223.7 million, compared to +63% sequentially.
Public Sector revenue was $129.5 million, compared to $105.0 in Q2 FY21, driven by additional deliveries to DOD / HHS under the existing agreement.
Private Sector revenue was $94.2 million, compared to $32.4 million for the prior quarter, led by significant additions to the enterprise and provider customer base.
Disposable test cartridge revenue was $179.0 million, +74% Q/Q.
Product gross margin improved to 60.2% from 59.9% in Q2 FY21 due to increased production partially offset by higher labor and material costs.
Net income was $19.3 million, a turnaround from a loss of $(8.5) million a year ago.
Cash and cash equivalents were $446.6 million.
Guidance: Cue Health expects FY21 revenues of $580.0 million - $590.0 million, higher than the consensus of 541.29 million.
Price Action: HLTH shares closed at $11.12 on Wednesday.