Cue Health Clocks $193M In Q4 Sales Buoyed By Solid Customer Base

Cue Health Inc HLTH reported Q4 sales of $192.5 million, compared to $13.3 million in Q4 FY20, beating the consensus of $185.29 million.

• The growth was driven by production capacity ramp through 2021, U.S. Department of Defense contract delivery, and expansion of customer base across all customer categories.
• Cue Health shipped over 230,000 Cue Readers to date, almost doubling the number of readers shipped through Q3 FY21.
• It has over 220 directly contracted organizations as customers, up from more than 80 at the end of Q3 FY21.
• For the first time, Private Sector revenues of $104 million surpassed the Public Sector, reflecting growth in customer base.
• Public Sector revenue was $88.5 million. Disposable test cartridge revenue was $165.4 million.
• Product gross margin improved to 46.3% due to the scale-up production and related efficiencies, resulting in more favorable absorption of fixed costs on a per-unit basis in 2021.
• The company reported EPS of $0.22, a shift from a $(1.16) loss, beating the consensus of $0.10.
• The company held cash and equivalents of $409.9 million as of December 31, 2021.
• Guidance: Cue Health expects Q1 FY22 revenues of $170 million - $180 million, higher than the consensus of $145.71 million.
• Price Action: HLTH shares traded 7.01% higher at $7.17 during pre-market on the last check Wednesday.