DMTK - DermTech stock dips as Q4 revenue falls CEO to step down

DermTech ( NASDAQ: DMTK ) was trading lower premarket on Friday despite Q4 results beating analysts' estimates, while the company announced that CEO John Dobak would step down.

Net loss widened to -$28.22M, compared to -$26.05M in Q4 2021.

Total revenue in Q4 declined -5.4% Y/Y to $2.99M due to lower assay revenue. However, both top and bottom line beat estimates.

Assay revenue fell -9.3% Y/Y to $2.69M, mainly due to changes in collection estimates for tests run in prior periods, according to the company.

Contract revenue grew to $302K, compared to $196K in the prior year period.

“We expect to grow DMT volume this year despite the ongoing friction attributable to non-contracted commercial payers and will continue to anchor our effort around monetizing our already significant demand. This focus on steadily improving average selling price (ASP) and generating covered tests is beginning to show positive signs," said President, CEO and Director John Dobak.

As of Dec. 31, 2022, cash, cash equivalents, restricted cash and short-term marketable securities were $129.8M, and  DermTech believes it can fund its current operating plan through Q3 2024.

CEO Transition :

DermTech noted that Dobak will continue to serve in his roles until the board appoints a successor or till Sept. 30.

The company noted that it has started a search for Dobak's replacement.

DMTK -2.63% to $3.70 premarket March 3

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