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Teknova(TKNO) - 2024 Q3 - Quarterly Results
TKNOTeknova(TKNO)2024-11-07 21:14

Revenue Performance - Total revenue for Q3 2024 was 9.6million,a179.6 million, a 17% increase from 8.2 million in Q3 2023[4] - Clinical Solutions revenue surged 229% to 2.0millioninQ32024,comparedto2.0 million in Q3 2024, compared to 0.6 million in Q3 2023[6] - Teknova reaffirms its 2024 revenue guidance of 35millionto35 million to 38 million, anticipating roughly 2% growth in Lab Essentials[11][12] Profitability and Margins - Gross margin for Q3 2024 was 0.9%, significantly down from 18.0% in Q3 2023, primarily due to a 2.8millionnon−recurringcharge[7]−NetlossforQ32024was2.8 million non-recurring charge[7] - Net loss for Q3 2024 was 7.6 million, or negative 0.15perdilutedshare,animprovementfromanetlossof0.15 per diluted share, an improvement from a net loss of 10.2 million, or negative 0.34perdilutedshare,inQ32023[9][25]−AdjustedEBITDAforQ32024wasnegative0.34 per diluted share, in Q3 2023[9][25] - Adjusted EBITDA for Q3 2024 was negative 5.0 million, an improvement from negative 5.5millioninQ32023[10]CashFlowandLiquidity−Thecompanyloweredits2024totalfreecashoutflowoutlooktolessthan5.5 million in Q3 2023[10] Cash Flow and Liquidity - The company lowered its 2024 total free cash outflow outlook to less than 16 million, down from less than 18million[12]−Totalcashandshort−terminvestmentswere18 million[12] - Total cash and short-term investments were 31.7 million, with gross debt at 12.1millionattheendofQ32024[4]−CashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was12.1 million at the end of Q3 2024[4] - Cash used in operating activities for the nine months ended September 30, 2024, was 11,455 thousand, a decrease from 15,922thousandforthesameperiodin2023,reflectingareductionofapproximately28.915,922 thousand for the same period in 2023, reflecting a reduction of approximately 28.9%[29] - The company’s cash and cash equivalents decreased to 6,145 thousand as of September 30, 2024, down from 32,112thousandattheendofthepreviousyear,adeclineofapproximately81.932,112 thousand at the end of the previous year, a decline of approximately 81.9%[27] - Free cash flow for the nine months ended September 30, 2024, was (12,013) thousand, an improvement from (23,544)thousandforthesameperiodin2023,indicatingareductionofapproximately48.9(23,544) thousand for the same period in 2023, indicating a reduction of approximately 48.9%[29] Expenses and Liabilities - Operating expenses decreased to 7.5 million in Q3 2024 from 10.2millioninQ32023,drivenbyreducedheadcountandspending[8]−Totalcurrentliabilitiesincreasedto10.2 million in Q3 2023, driven by reduced headcount and spending[8] - Total current liabilities increased to 9,719 thousand as of September 30, 2024, compared to 8,875thousandasofDecember31,2023,representinganincreaseofapproximately9.58,875 thousand as of December 31, 2023, representing an increase of approximately 9.5%[26] - The company’s long-term debt decreased to 10,857 thousand as of September 30, 2024, down from 13,251thousandasofDecember31,2023,representingadeclineofapproximately18.113,251 thousand as of December 31, 2023, representing a decline of approximately 18.1%[26] Asset Management - As of September 30, 2024, total assets decreased to 124,099 thousand from 128,587thousandasofDecember31,2023,representingadeclineofapproximately3.9128,587 thousand as of December 31, 2023, representing a decline of approximately 3.9%[26] - The company recorded 2.8 million in non-recurring, non-cash charges related to inventory disposal, which impacted gross profit[4][7] - The company’s accumulated deficit increased to (112,812)thousandasofSeptember30,2024,comparedto(112,812) thousand as of September 30, 2024, compared to (91,786) thousand as of December 31, 2023, indicating a worsening of approximately 22.9%[26] Financing Activities - The company raised 15,141thousandfromequityfinancinginthethreemonthsendedSeptember30,2024,comparedto15,141 thousand from equity financing in the three months ended September 30, 2024, compared to 22,915 thousand in the same period of 2023, a decrease of approximately 34.1%[27] - Adjusted EBITDA for the three months ended September 30, 2024, was (5,001)thousand,animprovementfrom(5,001) thousand, an improvement from (5,477) thousand for the same period in 2023, reflecting a positive change of approximately 8.7%[28] - The company reported a net loss of 7,565thousandforthethreemonthsendedSeptember30,2024,comparedtoanetlossof7,565 thousand for the three months ended September 30, 2024, compared to a net loss of 10,153 thousand for the same period in 2023, indicating an improvement of approximately 25.9%[28]