Alpha Teknova (TKNO) Q4 2024 earnings summary

Executive summary

• Achieved $37.7 million in 2024 revenue, up 3% year-over-year, with Q4 revenue of $9.3 million, up 18% from Q4 2023; excluding a large 2023 order, annual revenue grew 11%.

• Clinical Solutions revenue surged 110% in Q4 and 5% for the year; up 76% excluding a large 2023 order, with customer count rising 41% to 48.

• Custom Biopharma revenue grew over 40% in 2024, now 25% of total revenue; 58% of 2024 revenue came from custom and/or clinical accounts, with 27% from cell and gene therapy customers.

• Reduced operating expenses by $8.1 million and improved free cash outflow to $13.5 million, better than guidance.

• Launched Build-Tek, Express-Tek, and RUO+ offerings, and expanded liquidity through credit facility extension and equity financing.

Financial highlights

• Q4 2024 revenue was $9.3 million (up 18% y/y); full-year revenue was $37.7 million (up 3% y/y).

• Q4 gross margin improved to 23% from 17% y/y; full-year gross margin was 19.2%, or 26.5% excluding a $2.8 million inventory charge.

• Net loss for 2024 was $26.7 million ($0.57/share), improved from $36.8 million ($1.16/share) in 2023.

• Adjusted EBITDA for 2024 was negative $14.5 million, or negative $11.7 million excluding inventory charge, improved from negative $19.8 million in 2023.

• Free cash flow for 2024 was negative $13.5 million, a significant improvement from negative $26.7 million in 2023.

Outlook and guidance

• 2025 revenue guidance is $39–$42 million, implying 7% growth at the midpoint.

• Free cash outflow expected to be less than $12 million in 2025, now defined as cash used in operating plus investing activities.

• Expects mid-single-digit growth in catalog and diagnostics, at least 15% growth in custom biopharma, and break-even Adjusted EBITDA at $50–55 million annualized revenue.

• Gross margins expected in the high 20s percentage range for 2025.