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Beyond Air shares plunge 24% as Q4 earnings miss estimates

EditorRachael Rajan
Published 06/24/2024, 04:46 PM
© Reuters.
XAIR
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GARDEN CITY, N.Y. - Beyond Air, Inc. (NASDAQ: NASDAQ:XAIR), a medical device and biopharmaceutical company, reported a significant earnings miss in its fiscal fourth quarter, with a net loss per share of ($1.82), which was $1.33 worse than the analyst consensus of ($0.49).

The company's revenue for the quarter was $1.16 million, surpassing the consensus estimate of $747.2 thousand.

The company's stock plummeted by 24.6% in response to the earnings release.

Despite the earnings miss, Beyond Air's revenue showed a significant improvement from the previous fiscal year, where it reported no revenue. The company has also revised its fiscal year 2025 revenue guidance to greater than $10 million, down from the previous guidance of $12 million to $16 million. This updated guidance falls short of the initial expectations but suggests a trajectory of revenue growth.

Steve Lisi, Chairman and CEO of Beyond Air, commented on the company's focus on growth and commercial strategy, stating, "Throughout the past year, we successfully navigated challenges during the initial soft launch of LungFit PH and emerged with a stronger solution and commercial infrastructure." He also highlighted the company's capital conservation strategy aimed at reducing quarterly spend and extending the cash runway through at least July 2025.

Beyond Air's LungFit PH device has seen increased commercial demand, with over 1,100 patients treated across more than 50 hospitals. The company awaits an FDA decision on the cardiac surgery indication for LungFit PH and is working on the development of a second-generation system. However, certain R&D projects have been placed on hold as part of the capital conservation strategy.

The company's net cash burn rate is expected to be less than $30 million in FY 2025, assuming certain revenue targets are met. Beyond Air aims to achieve cash flow breakeven by the fourth fiscal quarter of 2026. As of March 31, 2024, Beyond Air reported cash, cash equivalents, and marketable securities of $34.5 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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