Aspira Women's Health Inc. (AWH)·Q2 2023 Earnings Summary

Executive Summary

• Q2 revenue was $2.5M, up 23% year-over-year; OvaSuite tests rose 16% to 6,289, and gross margin expanded to 62% driven by higher AUP and process efficiencies .
• EPS was -$0.28; external aggregators show an EPS beat and a revenue miss versus expectations, suggesting mixed estimate dynamics (SPGI consensus unavailable; see external source) .
• Cash used in operations fell to $3.4M; management lowered expected operating cash utilization for the remainder of 2023 to $6–$8M, citing continued discipline and efficiency initiatives .
• OvaWatch monetization improved with its PLA code effective April 1; OvaWatch AUP increased to $326 (+142% q/q), and OvaSuite AUP rose to $396, supporting margin gains .

What Went Well and What Went Wrong

What Went Well

• Sustained top-line growth and volume: Product revenue grew 23% to $2.5M; OvaSuite tests increased to 6,289 (+16% YoY), with OvaWatch contributing 884 tests (+80% vs prior quarter of adoption) .
• Pricing and margin execution: OvaSuite AUP reached $396; OvaWatch AUP was $326 (PLA code live), lifting total gross margin to 62% (vs 51% in Q1 and 47% in Q2’22) .
• Cost discipline and cash optimization: Sales & marketing expense fell >50% YoY to $1.8M; R&D fell 51% YoY to $0.7M; cash used in operations declined to $3.4M, with lowered H2 cash use guidance to $6–$8M .
  • Quote: “Our OvaSuite AUP for the quarter increased to $396… OvaWatch AUP of $326, a 142% increase over the first quarter.”
  • Quote: “We continue to focus on prudent use of resources… lowering our expected cash to be used in operations for the remainder of 2023 to between USD 6 million and USD 8 million.”

What Went Wrong

• Revenue vs expectations: External sources indicate revenue missed by ~$0.3M, while EPS beat; SPGI consensus was unavailable, limiting S&P-grounded estimate comparisons .
• Seasonal moderation: Management noted implied Ova1Plus volumes moderated sequentially due to typical summer seasonality and some shift from off-label Ova1Plus to reimbursable OvaWatch .
• Leadership transition risk: CSO Dr. Ryan Phan stepping down (remaining as advisor) introduces execution risk to development timelines, though management expressed confidence in the team .

Financial Results

YoY references:

• Q2 2023 revenue +23% vs Q2 2022 ($2.5M vs $2.0M) .
• Q2 2023 gross margin 62% vs 47% in Q2 2022 .

KPIs

• Tests per sales rep YTD improved to 598 vs 354 in 2022 (efficiency gains from territory rationalization and partnerships) .
• OvaWatch AUP $326 in Q2 (PLA code effective April 1), aligning reimbursement patterns with Ova1Plus .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We began billing OvaWatch under its unique PLA code on April 1, which resulted in second quarter OvaWatch AUP of $326, a 142% increase over the first quarter.” — Nicole Sandford .
• “Total gross profit margin… was 62% compared to 51% for the first quarter of 2023 and 47% to the second quarter of ’22. Gross profit margin improved due to an increase in average unit price and our ongoing focus on process efficiencies and cost containment.” — Torsten Hombeck .
• “We continue to focus on prudent use of resources… lowering our expected cash to be used in operations for the remainder of 2023 to between USD 6 million and USD 8 million.” — Torsten Hombeck .
• “We expect to… commercially launch our EndoCheck diagnostic blood test by the end of the year.” — Nicole Sandford .

Q&A Highlights

• Seasonality and product mix: Ova1Plus implied volumes moderated sequentially due to summer seasonality and shift from off-label Ova1Plus to reimbursable OvaWatch; management does not see a major moderation overall .
• Competitive landscape: “We are the only company that has a product portfolio available today… I’m not aware of any market competitors that are entering the market at this time.” — Nicole Sandford .
• Clinical data roadmap: OvaWatch longitudinal manuscript targeted before year-end to bolster provider and payer adoption; EndoCheck clinical study with 9 sites secured and ongoing sample collection .
• Cost control sustainability: Cash guidance includes EndoCheck launch and commercial refresh; slight increase in commercial expenses expected but within lowered H2 cash targets .
• Leadership transition: CSO stepping down; remains advisor; management confident in team continuity .

Estimates Context

• S&P Global consensus data for AWH Q2 2023 was unavailable via our SPGI interface at this time; we were unable to retrieve S&P estimates for EPS and revenue.
• External aggregator indicates GAAP EPS of -$0.28 (beat) and revenue of $2.5M (miss by ~$0.3M); this suggests a mixed outcome versus street expectations, but we cannot validate the consensus source via S&P Global in this instance .

Key Takeaways for Investors

• Margin expansion is the standout: 62% gross margin (+11 pts q/q; +15 pts YoY) on improved pricing and efficiencies—this de-risks near-term cash needs and supports a path toward breakeven with volume growth .
• Cash discipline credible: Q2 ops cash burn of $3.4M and lowered H2 guidance ($6–$8M) indicate continued operating leverage; July $4.7M raise strengthens liquidity for OvaSuite/EndoCheck milestones .
• OvaWatch monetization inflecting: PLA code implementation and AUP uplift (+142% q/q) validate reimbursement trajectory; longitudinal indication and manuscript are key upcoming catalysts .
• Commercial engine leaner but effective: >50% YoY cut in S&M with higher productivity per rep and volume growth; expect measured H2 spend to scale reach without eroding margin .
• Product pipeline milestones: EndoCheck launch by year-end and OvaWatch longitudinal publication can expand addressable market and support payer/provider adoption .
• Competitive stance favorable: Lack of direct competitors in adnexal mass risk assessment and intent to displace CA-125 underpin growth narrative .
• Trading implications: Near term, watch for manuscript/publication and payer wins (OvaWatch); medium term, monitor EndoCheck launch execution, sustained margin profile, and cash burn trajectory to assess durability of operating leverage .

Sources: Company Q2 2023 earnings call transcripts and Q1/Q4 filings/press releases; Q2 press release via GlobeNewswire/Yahoo; external aggregator for estimate comparison where S&P Global consensus was unavailable.

• Q2 earnings call transcript , alternate transcript
• Q1 2023 8-K press release
• Q4 2022 8-K press release
• Q1 preliminary volume press release
• Q2 press release (GlobeNewswire/Yahoo)
• External estimate comparison