Evogene (EVGN) Q3 2023 earnings summary

Executive summary

• AI-driven product development strategy relies on collaborations with industry leaders and licensed subsidiaries, generating potential upfront fees, R&D payments, milestones, royalties, and future exit proceeds.

• Q3 revenue reached $3.8 million, while net loss narrowed to $3.9 million; quarter-end consolidated cash and short-term deposits totaled $37.2 million.

Financial highlights

• Q3 revenue was $3.8 million versus ~$0.5 million in Q3 2022, primarily from Lavie Bio’s Corteva license and Casterra seed deliveries.

• Cash at September 30 totaled $37.2 million: Biomica $14.6 million, Lavie Bio $7.1 million, and Evogene, Casterra, Canonic, and AgPlenus combined $15.5 million.

• The quarter-end cash figures exclude Casterra purchase-order proceeds and Lavie Bio’s expected $2.5 million second Corteva installment, anticipated in early 2024.

Outlook and guidance

• Additional Casterra seed orders and new collaborations are expected to generate cash flow through 2024 and beyond.

• Casterra expects to deliver most, if not all, of its existing order by H1 2024, with most deliveries in or just after Q1; delivery timing depends on climate and irrigation, while quantity remains expected.

• Casterra is expanding production capacity across locations and expects infrastructure improvements to begin having an impact in H2 2024.

• BMC128 pre-IND meeting preparation is underway, with the meeting expected in Q1 2024; several multinational companies are expected to field-test LAV321 next year.

• More resources will be directed to Casterra given biodiesel potential, while investment in Canonic will be reduced amid challenging cannabis market conditions.