Akoya Biosciences (AKYA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $18.8M, down 25% year-over-year, mainly due to capital equipment purchase constraints in the life sciences tools market.

• Organizational restructuring and operational efficiencies were implemented, including workforce reductions and facility consolidation, to address market headwinds and improve margins.

• Net loss for Q3 2024 was $10.5M, an improvement from $12.9M in Q3 2023; loss from operations improved 28% to $8.3M.

• The installed instrument base grew 15% year-over-year to 1,299 units, with recurring revenue representing 48% of total revenue in Q3 2024.

• Strategic alternatives are being evaluated to maximize shareholder value and ensure long-term growth.

Financial highlights

• Q3 2024 product revenue was $12.3M (down 32% year-over-year); service and other revenue was $6.5M (down 9%).

• Gross margin improved to 62.3% from 60.6% year-over-year, driven by in-house manufacturing and product mix.

• Operating expenses fell 25% year-over-year to $20.1M; SG&A and R&D expenses also declined significantly.

• Cash, cash equivalents, and marketable securities totaled $39.3M as of September 30, 2024.

• Long-term debt stood at $75.9M as of September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance lowered to $80–$85M from a prior range of $96–$104M due to persistent macro challenges.

• Q4 revenue expected to show a minor step up from Q3; margin expansion and cost controls to continue.

• Management expects continued operating losses in the foreseeable future but is focused on achieving cash flow positivity.

• There is substantial doubt about the company's ability to continue as a going concern for the next twelve months without additional funding.

• Return to top-line growth anticipated in 2025, driven by reagent and clinical pipeline expansion.