On August 8, 2024, LanzaTech Global Inc (LNZA, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. LanzaTech Global Inc is a nature-based carbon refining company that transforms waste carbon into the chemical building blocks for consumer goods such as sustainable fuels, fabrics, and packaging. The company's goal is to reduce the need for virgin fossil fuels by challenging and striving to change the way the world uses carbon.
Performance and Challenges
LanzaTech Global Inc (LNZA, Financial) reported a revenue of $17.4 million for Q2 2024, falling short of the analyst estimate of $30.09 million. This represents a 35% increase compared to the $12.9 million reported in Q2 2023. The company attributed this growth primarily to its Biorefining business, including licensing revenue from LanzaJet and engineering services revenue from multiple customers.
Despite the revenue growth, the company faced challenges with a net loss of $27.8 million, slightly higher than the $26.8 million loss in Q2 2023. This increase was mainly due to a $5.8 million non-cash expense associated with the net change of financial instruments.
Financial Achievements
One of the significant achievements for LanzaTech Global Inc (LNZA, Financial) was the increase in gross profit to $11.9 million, a substantial rise from $2.1 million in Q2 2023. The company also reported a 25% reduction in adjusted EBITDA loss, which stood at $17.8 million compared to $23.8 million in the same period last year. These improvements highlight the company's efforts to enhance its financial performance despite ongoing challenges.
Income Statement Highlights
| $ millions, unless noted | 2Q24 | 2Q23 | % Change |
|---|---|---|---|
| Revenue | 17.4 | 12.9 | 35% |
| Cost of revenue | 5.5 | 10.8 | (49%) |
| Gross Profit | 11.9 | 2.1 | 469% |
| Operating expenses | 34.7 | 32.7 | 6% |
| Net income (loss) | (27.8) | (26.8) | (4%) |
| Adjusted EBITDA (loss) | (17.8) | (23.8) | 25% |
Balance Sheet and Cash Flow
As of June 30, 2024, LanzaTech had $75.8 million in total cash, restricted cash, and investments, compared to $92.3 million at the end of Q1 2024. The company successfully closed a $40 million investment by Carbon Direct Capital, bringing its total cash to over $100 million as of August 7, 2024. This capital raise is expected to strengthen the company's financial flexibility and support its growth initiatives.
Commercial and Operational Highlights
LanzaTech made significant strides in its commercial and operational activities during Q2 2024. The company increased its ownership stake in LanzaJet to approximately 37% from 23% and launched CirculAir™, a joint offering with LanzaJet to produce sustainable aviation fuel from waste feedstocks. Additionally, LanzaTech progressed several projects into the early-stage engineering phase and continued to scale up operations at IndianOil Corporation’s facility in India and ArcelorMittal’s facility in Belgium.
“We made progress on a number of strategic fronts during the quarter, including growing revenue, increasing our stake in LanzaJet, launching CirculAir, commencing direct CarbonSmart ethanol fuel sales, and bringing Carbon Direct Capital onboard as an important new investor,” said Dr. Jennifer Holmgren, Board Chair and Chief Executive Officer of LanzaTech.
Full-Year 2024 Financial Outlook
LanzaTech reaffirmed its full-year 2024 financial guidance, projecting total revenue between $90 million and $105 million and an adjusted EBITDA loss between $65 million and $55 million. The company expects revenue for the second half of 2024 to be heavily weighted towards the fourth quarter, with multiple projects anticipated to progress to the Final Investment Decision stage.
For more detailed insights and the complete financial report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from LanzaTech Global Inc for further details.
