Evogene (EVGN) Q2 2024 earnings summary

Executive summary

• Total revenues for the first six months of 2024 reached $5.1 million, up from $1.3 million in the first half of 2023; Q2 revenues were $914,000 versus $654,000 in Q2 2023.

• Net loss for the first half of 2024 was $9.8 million, a significant improvement from $14.8 million in the same period last year; Q2 net loss was $6 million, down from $7.8 million.

• Revenue growth was driven by Lavie Bio's licensing with Corteva and AgPlenus' collaboration with Bayer, with further growth expected in H2 2024 from Casterra's seed orders.

• Subsidiaries achieved key milestones: Casterra secured new orders and completed harvests, Biomica reported promising phase I trial results, and Lavie Bio expanded its product pipeline and commercial reach.

• Implemented a 10:1 reverse stock split in July 2024.

Financial highlights

• Cash, cash equivalents, and short-term deposits as of June 30, 2024, were $20.9 million, excluding $8.4 million in expected Casterra payments.

• Projected 2024 cash usage (excluding Lavie Bio and Biomica) is $8 million, a 36% decrease from 2023.

• Operating loss for H1 2024 was $10.2 million, down from $14.7 million; Q2 operating loss was $6.1 million, down from $7.9 million.

• R&D expenses for H1 2024 were $8.8 million, down from $10.2 million in H1 2023.

• Net loss per share for H1 2024 was $1.82, compared to $3.18 in H1 2023.

Outlook and guidance

• Anticipates continued revenue growth in the second half of 2024, mainly from Casterra's $8.4 million seed orders.

• Lavie Bio expects field trial results in Q4 2024 and has doubled Yalos market potential with expansion to winter wheat.

• Projected year-end cash position, including receivables from Casterra sales, is $18–$19 million, assuming $8.4 million in seed orders are received.