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% year-over-year.

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

• 43 active clinical customers as of June 30, 2024, up from 34 at the end of 2023; two new offerings launched: RUO+ and Express-Tek.

• Closed a $15.4M capital raise in July 2024, strengthening liquidity and supporting the path to profitability.

• Operating expenses decreased to $7.9M, the lowest since IPO, driven by workforce reductions.

Financial highlights

• Gross margin for Q2 2024 was 29.2%, down from 43.9% in Q2 2023.

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

• Free cash outflow improved to $3.0M in Q2 2024, the lowest since IPO; cash and equivalents at $18.6M as of June 30, 2024.

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

• Debt outstanding at June 30, 2024 was $12.1M under a senior secured term loan.

Outlook and guidance

• 2024 revenue guidance reaffirmed at $35–$38M; midpoint implies flat full-year revenue versus 2023, with double-digit growth expected in H2 2024.

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

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

• Management expects to reach Adjusted EBITDA break-even at $50–$55M annualized revenue.

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