On August 13, 2024, Alpha Teknova Inc (TKNO, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Alpha Teknova Inc provides critical reagents that enable the discovery, development, and production of biopharmaceutical products such as drug therapies, novel vaccines, and molecular diagnostics. Its product offerings include pre-poured media plates for cell growth and cloning, liquid cell culture media and supplements for cellular expansion, and molecular biology reagents for sample manipulation, resuspension, and purification. The company derives maximum revenue from the United States.
Performance Overview
Alpha Teknova Inc reported total revenue of $9.6 million for Q2 2024, surpassing the analyst estimate of $9.46 million. However, this represents a 17% decline compared to $11.5 million in Q2 2023. The company reported a net loss of $5.4 million, or negative $0.13 per diluted share, which is better than the analyst estimate of -$0.16 per share but still reflects a challenging financial environment.
Key Financial Metrics
Alpha Teknova Inc's gross profit for Q2 2024 was $2.8 million, down from $5.1 million in Q2 2023. The gross margin decreased to 29.2% from 43.9% in the same period last year, primarily due to lower Clinical Solutions revenue and increased overhead costs, including depreciation expenses from a new manufacturing facility.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $9.6 million | $11.5 million |
| Gross Profit | $2.8 million | $5.1 million |
| Net Loss | -$5.4 million | -$7.2 million |
| Adjusted EBITDA | -$2.6 million | -$2.3 million |
Operational Highlights
Alpha Teknova Inc launched two new offerings during the quarter: Express-TekSM Production and RUO+ manufacturing grade, aimed at providing increased product customization options for customers. The company also raised $15.4 million of equity capital in July 2024, which is expected to provide sufficient liquidity to bridge the company to cash flow positive.
“We delivered solid results across the board in the first half of 2024,” said Stephen Gunstream, President and Chief Executive Officer at Teknova. “I’m particularly encouraged by the progress we’ve made onboarding new clinical customers, now up to 43, a 26% increase in the past six months.”
Financial Position
As of June 30, 2024, Alpha Teknova Inc had a cash position of $18.6 million and gross debt of $12.1 million. The company’s operating expenses for Q2 2024 were $7.9 million, down from $12.1 million in Q2 2023, primarily due to reduced headcount and spending on professional fees.
Outlook
Alpha Teknova Inc reaffirmed its 2024 revenue guidance of $35-38 million and anticipates free cash outflow of less than $18 million for the year. The company remains cautiously optimistic about market recovery and continues to manage its operating expenses and capital expenditures to plan.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Alpha Teknova Inc for further details.
