Crescita Therapeutics (CTX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $3,594,000, up 18.5% year-over-year, driven by organic and inorganic growth in Skincare and higher Licensing revenue from Pliaglis international launches.

• Gross profit rose to $1,967,000, with gross margin increasing to 54.7% from 49.4% year-over-year.

• Net loss improved to $(1,036,000) from $(1,282,000) year-over-year; Adjusted EBITDA loss narrowed to $(681,000) from $(988,000).

• Cash and cash equivalents at quarter-end were $8,438,000, down $574,000, mainly due to equipment investments.

• Key business developments included a new NCIB, a $10M supply agreement amendment, a five-year exclusive manufacturing deal, a new distribution agreement, and the acquisition of Occy Laboratoire assets.

Financial highlights

• Revenue for Q3 2024 was $3,594,000, up $561,000 from Q3 2023.

• Gross margin improved to 54.7% from 49.4% year-over-year.

• Operating expenses increased to $3,139,000 from $2,880,000, mainly due to consulting, partnership, and acquisition-related costs.

• Net loss for Q3 2024 was $(1,036,000), an improvement of $246,000 year-over-year.

• Adjusted EBITDA loss improved to $(681,000) from $(988,000) year-over-year.

Outlook and guidance

• Sufficient liquidity and working capital of $10,200,000 as of September 30, 2024.

• No amounts drawn on the $3,500,000 revolving credit facility.

• Management expects continued improvement in Manufacturing as new equipment is integrated and new long-term supply agreements are fulfilled.

• Focus remains on organic growth, strategic acquisitions, out-licensing, contract manufacturing, and securing a new U.S. partner for Pliaglis.

• Anticipates launch of MicronJet in Canada in early 2025 following regulatory approval.