OraSure Technologies, Inc. reported significant declines in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net revenues were $39.9 million, a decrease of 55% from $89.2 million in Q3 2023. For the nine months ended September 30, 2024, net revenues totaled $148.4 million, down 55% from $329.6 million in the prior year. The decline was primarily attributed to a 96% drop in COVID-19 diagnostics revenue, which fell to $2.2 million from $50.1 million, reflecting reduced demand for InteliSwab® tests.
Gross profit for the third quarter of 2024 was $17.1 million, down from $44.3 million in the same quarter of 2023, leading to a gross profit margin decrease to 42.8% from 49.7%. The company reported an operating loss of $6.0 million for Q3 2024, contrasting with an operating income of $10.9 million in Q3 2023. For the nine-month period, the operating loss was $15.8 million, compared to an operating income of $28.8 million in the same period of 2023.
The company’s accumulated deficit increased to $(92.6 million) as of September 30, 2024, from $(83.9 million) at the end of 2023. Total stockholders' equity decreased slightly to $425.6 million from $430.7 million during the same timeframe. Cash and cash equivalents also saw a decline, totaling $278.6 million as of September 30, 2024, down from $290.4 million at the end of 2023.
Strategically, OraSure has been restructuring its operations, including a reduction in workforce and the discontinuation of certain product lines. The company executed workforce reductions in 2023 and 2024, including the winding down of its Diversigen subsidiary and the discontinuation of its risk assessment product line. The company expects these plans to be completed by the end of 2024 and into 2026.
Research and development expenses decreased by 34% to $5.6 million in Q3 2024, reflecting reduced spending on COVID-19 product development. Sales and marketing expenses also fell by 13% to $7.6 million, while general and administrative expenses decreased by 2% to $9.8 million.
In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $27.3 million, a significant decrease from $100.2 million in the same period of 2023. The company reported net cash used in investing activities of $33.5 million, primarily due to a $30 million investment in KKR Sapphiros L.P.
Overall, OraSure Technologies is navigating a challenging market environment with significant revenue declines and ongoing strategic adjustments.
About ORASURE TECHNOLOGIES INC
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