Q1 2024 Codexis Inc Earnings Call Transcript
Key Points
- Codexis Inc (CDXS) reported a strong financial start to 2024 with a 32% year-over-year increase in total revenues, reaching $17.1 million in Q1.
- Product revenues grew by 14% year-over-year, demonstrating continued demand and market penetration.
- Significant technical progress was made on the EcoSynthetix manufacturing platform, nearing the completion of a full-length RNA oligonucleotide synthesis.
- Codexis Inc (CDXS) secured a low to mid single-digit million dollar order for an engineered double-stranded RNA ligase with a large pharma company, indicating potential for more orders in 2025.
- The company is on track with the construction of the Ecos Innovation Lab, which will enhance their capability to perform ligation on behalf of customers and optimize manufacturing processes.
- Despite strong Q1 results, Codexis Inc (CDXS) anticipates Q2 to be the lowest quarter of the year in terms of product revenue, expecting a decrease compared to Q2 2023.
- The company's product revenues remain concentrated in a handful of large pharma customers, which could pose risks if diversification efforts do not succeed.
- R&D expenses are expected to increase as operations ramp up related to the E-Co synthesis Innovation Lab later in the year.
- There is a reliance on achieving further technical milestones, such as the full enzymatic synthesis of a full-length RNA molecule, which if delayed, could impact customer acquisition and revenue growth.
- Codexis Inc (CDXS) faces the challenge of transitioning R&D programs to commercial products to sustain long-term revenue growth, which is inherently uncertain and depends on the success of clinical trials.
Welcome to the Codexis First Quarter 2024 earnings call. (Operator Instructions)
And now I'll turn the call over to Carrie McKim, Director of Investor Relations. Please go ahead.
Thank you, operator. With me today are Dr. Stephen Dilly, Corixa's President and Chief Executive Officer, Kevin Norton, Chief Operating Officer, Sri Rielly, Chief Financial Officer, and Stefan Lippe, SVP of Research.
During this call, management will be making a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our guidance for 2024 revenue, product revenues and gross margin on product revenues, anticipated milestones including product launches, technical milestones and public announcements related thereto as well as our strategies and prospects for revenue growth and successful execution of current and future programs and partnerships to the extent that statements contained in this call are not descriptions of historical facts.
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