ArcticZymes Technologies (AZT) Q2 2024 earnings summary

Executive summary

• Achieved an all-time high in Q2 2024 order volume, up 18.9% year-over-year, despite challenging market conditions and smaller average order sizes.

• Q2 2024 revenue was NOK 27.5 million, down 2% year-over-year, with EBITDA of NOK 2.6 million, a 62% decrease from Q2 2023 due to one-off items.

• Progressed innovation portfolio, filed two patents, and advanced CDMO and distribution partnership talks, with multi-year supply agreements expected.

• Focused on commercialization, scientific marketing, and regulatory compliance to build a platform for long-term growth.

• Biomanufacturing order volume reached a record high, though average order value declined.

Financial highlights

• Q2 2024 sales were NOK 26.5 million, with total revenue of NOK 27.5 million including grants; EBITDA was NOK 2.6 million.

• Adjusted Q2 EBITDA was NOK 4.6 million, down from NOK 6.9 million last year, after excluding extraordinary items.

• Gross margin remained above 90% across all products.

• Cash and short-term investments at quarter end were NOK 170.3 million, with NOK 71 million in low-risk funds.

• Q2 operating expenses rose to NOK 25 million, including NOK 1.4 million in ERP implementation costs.

Outlook and guidance

• Long-term market fundamentals remain strong, with growth expected in nucleases due to increased drug approvals in cell and gene therapy.

• Two new GMP-grade nucleases and an ELISA kit are set to launch within 12 months, expected to drive biomanufacturing sales.

• Partnership deals in CDMO and distribution are expected to drive future revenue growth, with agreements anticipated before year-end.

• Continued investment in molecular enzymes and commercial development to position for market recovery.