Shares of Eargo ( NASDAQ: EAR ) fell 25.5% to $1.02 in Tuesday mid-day trading, after the hearing aids maker reported Q2 results that missed estimates, with its revenue falling significantly Y/Y and its loss widening.
EAR after hours on Monday posted Q2 non-GAAP EPS of -$0.78 which missed expectations by $0.55 . Its Q2 revenue of $7.25M fell 68.3% from last year and also missed by $21.05M .
"...our second quarter financial results and year-over-year comparisons reflect our decision to stop accepting insurance as a form of direct payment on December 8, 2021," EAR CEO Christian Gormsen said on the earnings conference call .
The decrease in quarterly revenue was also primarily driven by a fall in gross systems shipped. In Q2, EAR shipped 4,455 gross systems, compared to 12,548 in Q2 2021.
The second quarter was a tumultuous one for Eargo ( EAR ). The company in April announced a $34.4M settlement of a U.S. criminal probe without an admission of liability. Its listing on the Nasdaq was confirmed in May after it became up-to-date with its pending filing obligations with the U.S. SEC. In June, the company announced a $125M debt funding from Patient Square Capital.
EAR CEO Gormsen on the conference call characterized the quarter as "transitionary".
EAR also said it continues to expect its cash burn in 2022 to be about $20M to $25M per quarter.
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Eargo stock sinks ~26% after Q2 results miss estimates, revenue falls nearly 70% Y/Y