Alpha Teknova (TKNO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $9.6M, down 17% year-over-year but up 3% sequentially; excluding a large prior-year order, revenue grew 9%.

• Lab Essentials revenue was flat at $7.6M, while Clinical Solutions revenue was $1.6M, down 57% year-over-year but up 66% excluding a large prior-year order.

• Net loss for Q2 2024 was $5.4M ($0.13 per share), improved from $7.2M ($0.25 per share) in Q2 2023.

• Raised $15.4M in equity capital in July 2024, strengthening liquidity and supporting the path to profitability.

• Launched two new offerings: RUO+ and Express-Tek, both expected to be high-margin and address customer needs.

Financial highlights

• Q2 2024 gross profit was $2.8M, with a gross margin of 29.2%, down from 43.9% in Q2 2023.

• Operating expenses were $7.9M, down from $12.1M in Q2 2023; excluding $2.2M in non-recurring charges, expenses fell by $2.0M.

• Adjusted EBITDA loss was $2.6M, slightly higher than $2.3M in Q2 2023.

• Free cash outflow was $3.0M, the lowest since IPO, compared to $6.2M in Q2 2023.

• Cash and equivalents at June 30, 2024, were $18.6M, with gross debt of $12.1M.

Outlook and guidance

• Reaffirmed 2024 revenue guidance of $35–$38M, implying double-digit growth in H2 2024 versus H2 2023.

• Lab Essentials revenue expected to grow ~5% in 2024; remaining growth to come from Clinical Solutions.

• Free cash outflow for 2024 expected to be less than $18M.

• Company expects to reach Adjusted EBITDA break-even at $50–$55M annualized revenue and become cash flow positive shortly after.

• No longer substantial doubt about ability to continue as a going concern for the next twelve months, following cost reductions, credit amendments, and capital raise.