What happened
Shares of Augmedix (AUGX 2.15%) were up more than 15% as of 3:15 p.m. ET on Tuesday. The healthcare company's shares were given a boost by improved earnings in its second-quarter report, which it released after the markets closed on Monday. The stock is up more than 205% this year.
So what
Augmedix provides automated medical documentation and data services to large healthcare systems and physician practices. The company reported second-quarter revenue of $10.8 million, up 47% year over year. The company said the rise was due to a growing adoption of the company's Augmedix Notes platform.
The company also reported improved gross margin of 47%, compared to 43.7% in the same period a year ago. While Augmedix lost $5 million, that's better than the $7.3 million it lost in the second quarter of 2022.
Augmedix said it now expects at least $43.5 million of revenue in 2023, up from earlier guidance of $42 million and a big gain from the $30.9 million it reported in 2022 revenue.
Now what
Augmedix is in a good spot right now because the rise in artificial intelligence (AI) should also increase the demand for digital healthcare options in hospitals and other medical settings. The company's platforms are designed to save physicians time so they can spend more of it with patients, rather than filling out paperwork.
The next impetus for growth could be its Augmedix Go platform, which it is testing with multiple customers, including HCA Healthcare, and is expected to be launched later this year. Augmedix serves more than 20 healthcare systems but sees plenty of potential for growth, saying it could grow revenue by $1.2 billion among its current customers, and ultimately sees its market as being worth $8 billion a year in revenue.