Akili reports marked rise in revenue for Q3 and more digital health earnings

Akili, the company behind a video game-like prescription digital therapeutic for children with ADHD, reported a rise in third-quarter revenue to $702,000, from $114,000 in the second quarter of this year, which the company attributes to the continued growth of its adult ADHD offering EndeavorOTC.

The company reported total operating expenses of $18.8 million for the third quarter, compared to $15.3 million in the second quarter of this year, and a net loss of $15.9 million in Q3, compared to $11.8 million in Q2. 

Cash, short-term investments and cash equivalents were $86.3 million as of the end of the third quarter. 

“We are pleased with early results of our previously-announced strategic shift from a prescription to a non-prescription business model focused on EndeavorOTC,” Matt Franklin, CEO of Akili, said in a statement. “We’ve submitted EndeavorOTC for FDA review and authorization as an over-the-counter medical product in the adult ADHD market and anticipate that these business model changes combined with our new direct-to-consumer marketing efforts will accelerate the path to profitability.”

Canada-based Carebook, a Saas-based provider of integrated digital health and wellness solutions for employers, providers, pharmacies and others, reported a 69% increase in revenue to $3.5 million in the third quarter, compared to $2.1 million in the second quarter of this year. 

The company achieved its first quarter of positive adjusted EBITDA at $0.1 million, compared to Q2’s adjusted EBITDA loss of $1.1 million this year. 

Carebook reported a net loss of $0.4 million, a 77% improvement compared to the $1.7 million loss during the same period last year. 

“We continue to execute on our business plan, completed several large implementations so far during the year and helped our clients onboard a significant amount of users during the nine months ended September 30, 2023, indicating strong demand for health and wellness services continues to exist,” Michael Peters, Carebook CEO, said in a statement. 

“We reached another new high this quarter in terms of our revenue and achieved positive adjusted EBITDA for the first time. We expect the organic revenue growth trend to continue into the year end, and we will continue managing cost with an objective of minimizing cash burn and increasing our profit margins in the coming months. We are on course to deliver adjusted EBITDA break even or better in fiscal 2024, establishing a strong foundation for durable long-term growth.”

Home diagnostics company Cue Health reported total revenue of $17.5 million in the third quarter, but a net loss of $47 million and adjusted EBITDA loss of $36.6 million.

The company reported a loss of $7.4 million in product gross profit and operating expenses in quarter three of $60 million. 

Still, the company said it ended the third quarter with $111.5 million in cash and cash equivalents and continues to operate with no debt obligations.

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