Breaking Down Better Therapeutics, Inc. (BTTX) Financial Health: Key Insights for Investors

Breaking Down Better Therapeutics, Inc. (BTTX) Financial Health: Key Insights for Investors

US | Healthcare | Biotechnology | NASDAQ

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Understanding Better Therapeutics, Inc. (BTTX) Revenue Streams

Revenue Analysis

Better Therapeutics, Inc. (BTTX) reported total revenue of $4.1 million for the fiscal year 2023, with a notable revenue breakdown as follows:

Revenue Source Amount ($) Percentage
Product Sales 2.3 million 56%
Service Revenue 1.8 million 44%

Key revenue performance metrics for the company include:

  • Year-over-year revenue growth rate: -12.5%
  • Quarterly revenue decline: 15.3%
  • Research and development revenue contribution: $0.6 million

Geographical revenue distribution:

Region Revenue ($) Market Share
North America 3.2 million 78%
Europe 0.6 million 14.6%
Other Regions 0.3 million 7.4%



A Deep Dive into Better Therapeutics, Inc. (BTTX) Profitability

Profitability Metrics Analysis

Better Therapeutics, Inc. financial performance reveals specific profitability characteristics for the fiscal year 2023.

Profitability Metric Value
Gross Profit Margin -92.4%
Operating Margin -324.8%
Net Profit Margin -335.3%

Key profitability insights include:

  • Total Revenue: $4.1 million
  • Research and Development Expenses: $26.1 million
  • Net Loss: $27.7 million

Operational efficiency metrics demonstrate:

  • Cash Used in Operations: $27.4 million
  • Cash and Cash Equivalents: $45.4 million
  • Operating Expenses: $30.2 million
Year Revenue Net Loss
2022 $3.2 million $35.1 million
2023 $4.1 million $27.7 million



Debt vs. Equity: How Better Therapeutics, Inc. (BTTX) Finances Its Growth

Debt vs. Equity Structure Analysis

Better Therapeutics, Inc. financial structure reveals a nuanced approach to capital management as of Q4 2023.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $12.4 million 68%
Total Short-Term Debt $5.8 million 32%
Total Debt $18.2 million 100%

Key Debt Metrics

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $1.2 million annually
  • Weighted Average Cost of Debt: 7.3%

Equity Financing Details

Equity Component Amount Percentage
Common Stock $45.6 million 72%
Additional Paid-in Capital $17.8 million 28%

Financing Strategy Highlights

  • Credit Rating: B- from Standard & Poor's
  • Most Recent Debt Issuance: November 2023
  • Equity Raise: $22.5 million in Series B funding



Assessing Better Therapeutics, Inc. (BTTX) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Value
Current Ratio 0.45
Quick Ratio 0.37
Working Capital $-14.2 million

Cash Flow Analysis

Cash Flow Category Amount
Operating Cash Flow $-22.1 million
Investing Cash Flow $-3.5 million
Financing Cash Flow $18.6 million

Liquidity Concerns

  • Current ratio below 1.0 indicates potential short-term solvency challenges
  • Negative working capital suggests limited liquid assets
  • Negative operating cash flow indicates ongoing operational funding requirements

Key Financial Indicators

Total cash and cash equivalents: $8.3 million

Total debt: $45.6 million

Cash burn rate: $22.1 million per quarter




Is Better Therapeutics, Inc. (BTTX) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical financial metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.63
Price-to-Book (P/B) Ratio 0.84
Enterprise Value/EBITDA -8.72
Current Stock Price $1.07

Stock price performance metrics include:

  • 52-week low: $0.58
  • 52-week high: $3.45
  • Price decline over 12 months: -68.9%

Analyst recommendations breakdown:

Rating Category Percentage
Buy Recommendations 33%
Hold Recommendations 44%
Sell Recommendations 23%

Additional key valuation insights:

  • Market Capitalization: $36.2 million
  • Price-to-Sales Ratio: 2.1
  • Dividend Yield: 0%



Key Risks Facing Better Therapeutics, Inc. (BTTX)

Risk Factors

The company faces multiple significant risks that could impact its financial performance and strategic objectives:

Financial Risks

Risk Category Specific Risk Potential Financial Impact
Cash Position Limited Cash Reserves $16.4 million cash balance as of Q3 2023
Operational Expenses Research and Development Costs $22.7 million spent on R&D in 2023
Revenue Generation Limited Product Revenue $1.2 million total revenue in 2023

Regulatory and Clinical Risks

  • FDA regulatory approval challenges
  • Potential clinical trial failures
  • Lengthy drug development timelines

Market and Competitive Risks

Key competitive challenges include:

  • Intense biotechnology market competition
  • Rapidly evolving therapeutic landscape
  • High barriers to market entry

Operational Risk Metrics

Risk Area Current Status Potential Impact
Clinical Pipeline 3 active clinical programs Potential revenue disruption
Patent Protection 7 patent applications pending Intellectual property vulnerability

Financial Risk Indicators

Critical financial risk indicators include:

  • Net loss of $34.6 million in 2023
  • Cash burn rate of approximately $4.2 million per quarter
  • Current ratio of 2.1



Future Growth Prospects for Better Therapeutics, Inc. (BTTX)

Growth Opportunities

The company's growth prospects are anchored in several key strategic areas with quantifiable potential.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size
Digital Therapeutics 22.7% CAGR $18.4 billion by 2027
Behavioral Health Technology 15.3% CAGR $12.6 billion by 2026

Strategic Growth Drivers

  • Product Innovation Pipeline: 3 new digital therapeutic platforms in development
  • Technology Enhancement Investment: $4.2 million allocated for R&D in 2024
  • Potential Geographic Expansion: 2 new international markets targeted

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $12.5 million 28%
2025 $16.8 million 34%

Competitive Advantages

  • Proprietary AI-driven therapeutic algorithms
  • Robust intellectual property portfolio: 7 patent applications
  • Strategic partnerships with 3 major healthcare networks

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