Evogene (EVGN) Q3 2024 earnings summary

Executive summary

• Total revenues for the first nine months of 2024 were $6.9 million, up from $5.1 million year-over-year, with Q3 2024 revenues at $1.8 million, down from $3.8 million in Q3 2023 due to a prior-year one-time license fee at Lavie Bio.

• Operating loss for the first nine months of 2024 was $17.6 million, an improvement from $18.9 million in the same period last year; net loss for the period was $18 million, slightly better than $18.6 million year-over-year; Q3 net loss increased to $8.2 million from $3.9 million due to lower revenues and higher expenses.

• Cash position as of September 30, 2024, was $20 million, with projected 2024 cash usage (excluding Biomica and Lavie Bio) at $8–$10 million, down from $12.5 million in 2023.

• August 2024 fundraising raised $5.5 million in gross proceeds, including shares and warrants; cost-cutting measures included a 16% headcount reduction.

Financial highlights

• Q3 2024 revenues mainly from Casterra's seed sales; Q3 2023 included a $2.5 million Lavie Bio license fee.

• R&D expenses for the first nine months of 2024 were $13.2 million, down from $15.2 million year-over-year, mainly due to reduced genomics, Biomica, and Canonic expenses.

• G&A expenses for Q3 2024 were $2.9 million, up from $1.5 million in Q3 2023, due to fundraising costs and a provision for doubtful debt.

• Financing expenses net for the first nine months of 2024 were $378,000, compared to income of $234,000 in the prior year, mainly due to warrant-related accounting.

• Gross profit for the first nine months was $1.9 million, up from $1.3 million year-over-year.

Outlook and guidance

• Anticipates continued revenue growth for full year 2024, mainly from Casterra's seed order supply.

• Projected 2024 cash usage (excluding Biomica and Lavie Bio) is $8–$10 million, down from $12.5 million in 2023.

• Casterra expected to supply a significant portion of existing seed orders by year-end 2024; discussions ongoing for 2025 orders.

• Lavie Bio's Yalos product expected to see significant sales growth, especially with soybean expansion in 2025.