Telesis Bio (DNAY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $1.6M, down from $7.0M in Q2 2023, due to declines in product and collaboration revenue, especially after deferred revenue from the Pfizer contract and a shift to the Gibson SOLA platform.

• Net loss for Q2 2024 was $12.6M–$13.2M, compared to $8.3M–$8.4M in Q2 2023; net loss per share was $(7.62).

• The company is divesting its EtonBio/Eton subsidiary, now classified as a discontinued operation, contributing a $1.0M loss in Q2 2024.

• As of June 30, 2024, cash, cash equivalents, restricted cash, and short-term investments totaled $10.3M, insufficient to fund operations for the next twelve months.

• CEO transition completed in April–May 2024, with Eric Esser assuming the role and Todd Nelson remaining on the board.

Financial highlights

• Q2 2024 total revenue: $1.6M (Q2 2023: $7.0M); H1 2024: $3.7M (H1 2023: $11.7M).

• Gross margin for Q2 2024 was (52%), impacted by $1.7M–$1.8M in restructuring/inventory charges; adjusted gross margin would have been 64%.

• Operating expenses for Q2 2024 were $10.7M, down from $12.4M in Q2 2023; excluding restructuring, expenses would have been $8.8M.

• Net loss per share for Q2 2024 was $(7.62), compared to $(5.10) in Q2 2023.

• Cash, cash equivalents, and investments totaled $10.3M as of June 30, 2024; notes payable stood at $5.3M.

Outlook and guidance

• Management expects continued operating losses and negative cash flows; current cash resources are not sufficient to fund operations for at least twelve months.

• The company is seeking additional financing and may need to delay, limit, or reduce product development or commercialization if funding is not secured.

• Substantial doubt exists regarding the company's ability to continue as a going concern.

• No additional forward-looking guidance will be issued at this time.