Co-Diagnostics (CODX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to $2.7 million from $0.2 million year-over-year, driven by $2.5 million in grant revenue and milestone achievements.

• Net loss narrowed to $7.6 million ($0.25 per share) from $8.9 million ($0.31 per share) year-over-year, with adjusted EBITDA loss improving to $5.9 million from $9.6 million.

• First FDA 510(k) application for the Co-Dx PCR Pro instrument and COVID-19 test for OTC use submitted in June 2024 and under review.

• Ongoing development of tuberculosis, respiratory multiplex, HPV, and strep tests, with clinical trials for TB planned in South Africa and India before year-end.

• New manufacturing facility inaugurated in South Salt Lake and strong engagement at major trade shows to build global relationships.

Financial highlights

• Q2 2024 revenue: $2.7 million (Q2 2023: $0.2 million), with $2.5 million in grant revenue and $0.2 million in product revenue.

• Gross profit improved to $2.4 million from a loss of $0.3 million year-over-year, with cost of revenue at $0.2 million.

• Operating expenses decreased to $10.1 million from $11.7 million in Q2 2023, mainly due to lower stock-based compensation, bad debt, and clinical trial costs.

• Adjusted EBITDA loss improved to $5.9 million from $9.6 million in the prior year.

• Cash, cash equivalents, and marketable securities totaled $44.9 million as of June 30, 2024.

Outlook and guidance

• Continued focus on advancing the test pipeline, including TB, respiratory multiplex, HPV, and strep tests, with clinical evaluations for multiplex test planned for later in 2024.

• Commercial launch of the PCR platform contingent on FDA clearance, with strong interest from both domestic and international markets.

• Management expects existing capital resources and future sales to meet operating requirements for the next 12 months, but anticipates continued operating losses and may seek additional equity financing.

• Ongoing management of cash and operational efficiency to support long-term growth and future product launches.