Crescita Therapeutics (CTX) Q2 2024 earnings summary

Executive summary

• Q2-2024 revenue declined to $4.1M from $5.2M year-over-year, mainly due to lower manufacturing segment sales following order cancellations by a major client.

• Skincare segment grew 10.7% year-over-year, partially offsetting manufacturing declines.

• Net loss widened to $0.9M from $0.3M in Q2-2023; adjusted EBITDA was $(0.7)M versus $0.2M last year.

• Cash position at quarter-end was $9.0M, down $0.5M sequentially, reflecting asset acquisition and share repurchases.

Financial highlights

• Gross profit fell to $2.2M from $3.1M year-over-year; gross margin decreased to 54.7% from 59.5%.

• Operating expenses remained flat at $3.3M; net loss per share was $(0.05) versus $(0.01) last year.

• Adjusted EBITDA declined by $0.9M year-over-year to $(0.7)M.

Outlook and guidance

• New manufacturing contract amendment secures US$10M over four years, starting 2025, partially offsetting prior order cancellations.

• Exclusive supply agreement with a Canadian healthcare provider could generate up to $6M annual revenue by end of initial five-year term.

• Regulatory approval and launch of MicronJet device in Canada anticipated in H1 2025.