Oxford Nanopore Technologies (ONT) H1 2024 earnings summary

Executive summary

• H1 2024 revenues reached £84.1m, up 12.4% year-over-year at constant currency, with 74% from consumables.

• Gross margin improved to 58.8%, up 120bps year-over-year, driven by product mix and operational improvements.

• Adjusted EBITDA loss increased to £61.6m, reflecting higher operational expenses and investment, but loss reduced 6% sequentially from H2 2023.

• Strong cash position of £397.1m at period end, further enhanced by a post-period equity raise of £78.2m.

• Full-year 2024 guidance reaffirmed: 20–30% underlying revenue growth at constant currency and ~57% gross margin.

Financial highlights

• Revenue of £84.1m in H1 2024, with underlying growth of 12.4% at constant currency; reported revenue down 2.2% year-over-year.

• Gross margin at 58.8%, with improvements from PromethION flow cells and product mix.

• Adjusted EBITDA loss increased 56% year-over-year to £61.6m, but improved sequentially from H2 2023.

• Cash and liquid investments stood at £397.1m at 30 June 2024, down from £472.1m at FY23.

• Revenue headwinds from FX (£2.4m) and declining COVID/EGP revenues (£8.9m).

Outlook and guidance

• FY24 guidance confirmed: underlying revenue growth of 20–30% at constant currency, gross margin ~57%.

• H2 revenue expected to step up, especially in Americas, with improved sales force efficiency and new product launches.

• Medium-term: >30% CAGR through 2027, gross margin >62% by FY27, EBITDA break-even in 2027, cash flow break-even in 2028.

• Revenue expected to be second-half weighted (approx. 45:55 split).

• COVID/EGP headwind to be smaller than previously expected.